President Donald Trump dropped a digital bombshell on Thursday, demanding the immediate resignation of Intel’s CEO, Lip-Bu Tan, via his favorite megaphone, Truth Social.
He called Tan “highly conflicted” due to alleged ties to Chinese tech firms, stirring up a storm in the semiconductor world. It’s not every day a president plays corporate referee, but Trump’s at it again, and the tech industry is grabbing popcorn.
The drama kicked off when Trump posted, “There is no other solution to this problem,” leaving no room for negotiation. This isn’t just a random tweetstorm—it’s part of Trump’s ongoing crusade to reshape the chip industry.
On Wednesday, he threatened a whopping 100% tariff on imported computer chips unless companies start building factories on U.S. soil.
Enter Senator Tom Cotton, who added fuel to the fire with a letter to Intel’s board chairman, Frank Yeary. Cotton, hailing from Arkansas, raised eyebrows about Tan’s investments in Chinese companies, some allegedly linked to the People’s Liberation Army.
His letter reads like a tech-themed spy novel, questioning whether Intel asked Tan to cut ties with these firms.
Cotton’s concerns stem from a Reuters report claiming Tan, either personally or through venture funds, poured millions into Chinese tech companies.
At least eight reportedly have military connections, which sounds serious enough to make anyone double-check their stock portfolio. Intel, so far, has stayed quieter than a broken circuit board, declining to comment on both Cotton’s letter and Trump’s post.
Tan, who took the CEO helm in March, stepped into a company already wobbling like a poorly soldered chip. His predecessor, Patrick Gelsinger, got the boot in 2024 after Intel lagged behind rivals like Nvidia and AMD in the AI chip race. Gelsinger’s grand plan to build U.S. factories couldn’t outrun Intel’s debt or competitors’ head start.
Intel’s stock took a 2% nosedive on Thursday, wiping out its yearly gains faster than a bad firmware update. With a market value of $89 billion, Intel’s trailing behind rivals who are sprinting toward trillion-dollar valuations. The company’s woes are piling up, and Trump’s outburst isn’t helping the mood in the boardroom.
The CHIPS Act, a Biden-era initiative, handed Intel nearly $8 billion to boost domestic chip production and supply the Defense Department. But whispers from The New York Times suggest the grant was slashed because officials doubted Intel’s ability to deliver. Ouch—that’s like getting a participation trophy instead of the gold medal.
Meanwhile, Intel’s competitors are playing it smart. Taiwan Semiconductor, Samsung, and Nvidia are pouring billions into U.S. factories, dodging Trump’s tariff threats with the grace of a well-coded algorithm. Even Apple’s jumping in, promising $100 billion in U.S. investments to keep the tariff wolf at bay.
Tan’s resume doesn’t exactly scream “newbie.” He led Cadence Design Systems from 2009 to 2021, turning it into a chip design powerhouse. But Cotton’s letter points out a hiccup: Cadence recently paid $140 million for violating export controls by selling tech to a Chinese military university.
Trump’s tariff plan is bold—some might say bonkers. A 100% tax on foreign chips could jack up prices for everything from laptops to toasters. But companies building in the U.S. get a free pass, which has firms scrambling to set up shop stateside.
Intel’s in a tough spot, trying to catch up in the AI chip race while navigating this political hot potato. Leadership turmoil could delay factory plans, and nobody wants to be the company that fumbles $8 billion in taxpayer money. Tan’s got a tightrope to walk, and Trump’s shouting from the sidelines.
The semiconductor industry is watching this unfold like a reality show cliffhanger. Will Tan step down, or will Intel’s board back him up? Either way, the stakes are higher than a stack of silicon wafers.
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