President Trump called on Intel CEO Lip-Bu Tan to resign on Thursday, prompting the technology company’s stock to slip before the opening bell.
“The CEO of Intel is highly CONFLICTED and must resign, immediately,” Trump posted on Truth Social, without providing additional details. “There is no other solution to this problem. Thank you for your attention to this problem!”
Intel did not immediately respond to CBS MoneyWatch’s request for comment.
The president’s call for Tan’s resignation comes after Sen. Tom Cotton, a Republican from Arkansas, sent a letter to Intel Chairman Frank Yeary on Tuesday expressing concern over Tan’s investments and ties to Chinese businesses.
“Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms,” Cotton wrote in the letter. “At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army.”
Cotton went on to mention Cadence Design Systems, the multinational tech company where Tan served as CEO from 2009 to 2021, and which pleaded guilty last week to unlawfully exporting its products to a Chinese military university and transferring its technology to an associated Chinese semiconductor company without obtaining licenses.
“These illegal activities occurred under Mr. Tan’s tenure,” Cotton wrote.
The senator asked Yeary to respond to a series of questions on Tan’s ties to the Chinese companies by Aug. 15.
Tan, a technology investor and veteran of the semiconductor industry, was appointed as CEO of Intel in March.
Intel’s stock fell 1.7% in early morning trading.
The Associated Press
contributed to this report.
Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.
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