Intel Chief Hits Back at Trump Resignation Demands Amid China Controversy

The chief executive of US semiconductor powerhouse Intel, Lip-Bu Tan, has spoken out following intense pressure from President Donald Trump to step down over alleged connections to China. In a direct message to employees, Mr Tan emphasised his commitment to maintaining the highest ethical standards and reinforced his dedication to prioritising both national and economic security interests of the United States.

The furore erupted after President Trump publicly demanded Mr Tan’s immediate resignation, citing what he described as “highly conflicted” business ties. This intervention comes on the heels of a letter from Republican senator Tom Cotton, addressed to Intel’s board, which questioned Mr Tan’s previous roles, particularly his tenure at Cadence Design Systems. In recent weeks, Cadence admitted to breaching US export controls for selling microchip design technology to China’s National University of Defence Technology, an institution banned in the US for links to the Chinese military. The company has agreed to pay a substantial fine of $140 million over the matter.

Investigations have revealed that Mr Tan’s investment fund, Walden International, has backed hundreds of Chinese ventures, some of which reportedly maintain links with the Beijing government’s military apparatus. Mr Tan, a naturalised US citizen originally from Malaysia, branded much of the commentary as “misinformation” and stressed that Intel’s board stands fully behind him at this critical juncture.

The ongoing controversy has had an immediate impact on Intel’s market performance, with shares falling four per cent following President Trump’s public intervention. Senator Cotton highlighted growing concerns about the security and integrity of Intel’s operations, calling on the company to clarify any knowledge it had regarding the investigation into Mr Tan’s business history.

Responding to these developments, Intel reaffirmed the company’s bedrock commitment to the integrity of its role in the US defence ecosystem and its central importance to the nation’s security. As a key player in global chip manufacturing, Intel recently pledged to invest $100 billion in expanding US production facilities, securing $8 billion in government subsidies in support of domestic manufacturing ambitions.

Mr Tan’s appointment was initially viewed as a pivotal step in reversing a prolonged downturn at Intel, marked by declining share prices and flagging revenues. While Intel once dominated the silicon landscape, the company has struggled to keep pace with newer competitors such as Nvidia, whose focus on AI has revolutionised the sector. With the scrutiny intensifying, the future direction of one of Silicon Valley’s founding giants appears more uncertain than ever.