Washington — US President Donald Trump demanded the immediate resignation of Intel chief executive Lip-Bu Tan, calling him “highly conflicted” due to longstanding investment ties with Chinese technology companies, including firms linked to the Chinese military.
The sharp rebuke follows revelations that Tan, through his venture capital firm Walden International, has invested more than $200 million in hundreds of Chinese semiconductor and artificial intelligence startups since 2012. Many of these firms, according to public filings, have links to the People’s Liberation Army and are considered critical to China’s military-industrial ambitions.
“You cannot run an American chip company while investing in China’s military-industrial complex,” Trump said in a statement. “lip-bu tan must resign.”
Tan, who took over as Intel’s ceo in March 2025, is also the former executive chairman of Cadence Design Systems, which recently pleaded guilty to illegally exporting sensitive software to a Chinese military university. The company agreed to pay over $140 million in fines to settle the case, further intensifying scrutiny of Tan’s leadership.
Intel’s board has not publicly responded to Trump’s demand. However, the company’s stock dropped more than 4% in premarket trading following the statement, reflecting growing investor concerns over political interference and national security implications.
Critics argue the move sets a troubling precedent. “This kind of direct political pressure on corporate governance is unprecedented in scale,” said Joshua Yuen, a chip sector analyst at KPMG. “It highlights how completely the semiconductor industry has become a geopolitical battleground.”
Supporters of Trump’s call insist the issue is one of national loyalty. “No executive with deep financial ties to the Chinese military should be allowed to lead a company that is central to America’s technological future,” said Congresswoman Elise Stefanik, who echoed the president’s demand for Tan’s resignation.
Since entering office, President Trump has intensified efforts to purge Chinese influence from critical supply chains, particularly in the chip sector. The administration has used export controls, investment bans, and the Chips Act to enforce what it calls a “patriotic firewall” around strategic technologies.
Tan’s defenders argue his global investment background is a strategic asset, not a liability. “Intel operates in a global marketplace,” said a source close to the board. “Tan brings decades of experience that can help the company navigate the complex international tech landscape.”
Yet with bipartisan pressure mounting and the 2026 midterms looming, Intel’s leadership is under severe strain to respond. Industry insiders say the board is weighing whether to back Tan or initiate a search for a new ceo more aligned with Washington’s hawkish posture on China.
According to Reuters, Tan’s venture capital activities through Walden International involved funding Chinese tech firms linked to military applications, including artificial intelligence and semiconductor fabrication.
Intel’s board is reportedly divided. Some directors are backing Tan, citing his success in restructuring the company and refocusing production domestically through the Chips Act. Others, however, fear political fallout and escalating regulatory pressure from Washington.
According to a separate report by Reuters, the political backlash has intensified, with leading republican lawmakers, including House Majority Leader Elise Stefanik, backing Trump’s demand. She called Tan’s resignation “a national security necessity.”
Industry analysts warn that Trump’s intervention may create a dangerous precedent for political intrusion into corporate leadership. “This is governance under siege,” said Joshua Yuen, chip industry analyst at KPMG. “The global nature of technology investment is becoming a liability in Washington’s eyes.”
Trump’s administration has intensified its anti-China tech campaign, targeting executives, companies, and investors tied to Beijing. Tan’s case, critics say, has become a flashpoint in that broader effort to purge Chinese influence from America’s critical industries.
