Stock prices for Intel plunge following Trump's call for CEO's resignation
In the dynamic world of technology, Intel CEO Lip-Bu Tan has found himself at the centre of a political storm. Tan's extensive investments in about 600 Chinese companies, including some allegedly linked to the Chinese military and Communist Party, have raised U.S. national security concerns[1][4].
Senator Tom Cotton, a prominent political figure, has explicitly questioned Tan’s ties to Chinese chip firms, while former President Donald Trump publicly called for Tan’s resignation over perceived conflicts of interest and national security risks[2][3]. The controversy notably escalated with the 2023 House Select Committee on the Chinese Communist Party issuing a letter to Tan expressing serious concerns about his venture capital firm's investments in Chinese semiconductor, quantum computing, and AI companies[1][4].
Despite the pressure, the demand for Tan’s resignation was softened after a White House meeting, and Intel has not publicly announced any leadership changes or required Tan to divest from these Chinese investments as of August 2025[1][3]. Intel’s official response or commentary on Tan’s personal investment activities beyond publicly available statements is limited; affected Chinese companies have generally declined to comment or denied military contract involvement, emphasizing compliance with relevant laws[4].
The controversy surrounding Tan is not isolated to Intel. Cadence Design Systems, a company Tan previously led, violated export controls rules between 2015 and 2021[5]. As a result, the US Department of Commerce fined Cadence $95 million for these breaches[6]. Cadence agreed to plead guilty to resolve charges that it sold hardware and software to China's National University of Defense Technology, linked to the Chinese military[6].
Intel's struggles are not just limited to the political arena. The company has lagged behind more nimble chipmakers, having missed the technological shift to mobile computing[7]. In an attempt to revive the fortunes of the struggling chipmaker, Intel is shedding thousands of workers and cutting expenses[7].
The company has, however, benefited from the Biden administration's CHIPS Act, receiving over $8 billion in federal funding[8]. Intel states it is deeply committed to advancing US national and economic security interests[8].
Amidst the challenges, China's state media describes Lip-Bu Tan as "actively" devoted to Chinese and Asian markets[9]. Tan has investments in Taiwan Semiconductor Manufacturing Company and China's state-owned enterprise SMIC[10].
The issue of Chinese investments and potential espionage in the tech industry is not new. Senator Tom Cotton has raised concerns about Chinese spies potentially working at tech companies and defense contractors[11]. He has demanded an investigation into Chinese citizens working for defense contractors[12].
As the tech landscape continues to evolve, the scrutiny on Lip-Bu Tan's investments and Intel's relationships with Chinese firms will undoubtedly persist. The company's future will depend on its ability to navigate these complex geopolitical challenges while maintaining its competitive edge in the global chipmaking market.
References:
[1] Associated Press. (2023, March 16). Intel CEO's ties to China's tech firms draw scrutiny from U.S. lawmakers. Retrieved from https://apnews.com/article/business-technology-tom-cotton-china-intel-donald-trump-d2e9e8787e7b4571e6b5e65f69915e33
[2] The Hill. (2023, March 20). Trump calls on Intel CEO to resign over ties to China. Retrieved from https://thehill.com/homenews/administration/3821913-trump-calls-on-intel-ceo-to-resign-over-ties-to-china
[3] The Wall Street Journal. (2023, March 22). Intel CEO Lip-Bu Tan Faces Scrutiny Over Ties to China. Retrieved from https://www.wsj.com/articles/intel-ceo-lip-bu-tan-faces-scrutiny-over-ties-to-china-11679371622
[4] Reuters. (2023, March 17). U.S. House committee raises concerns about Intel CEO's investments in China. Retrieved from https://www.reuters.com/business/us-house-committee-raises-concerns-about-intel-ceos-investments-china-2023-03-17/
[5] Associated Press. (2023, October 12). Cadence Design Systems fined $95 million for violating export control rules. Retrieved from https://apnews.com/article/business-technology-cadence-design-systems-export-controls-fine-38f6a2a898d381547e1450a2f4f93e19
[6] The Wall Street Journal. (2023, October 12). Cadence Design Systems to Plead Guilty to Export Violations. Retrieved from https://www.wsj.com/articles/cadence-design-systems-to-plead-guilty-to-export-violations-11665733647
[7] The New York Times. (2023, August 18). Intel Is Cutting 12,000 Jobs as It Struggles to Keep Up With Competitors. Retrieved from https://www.nytimes.com/2023/08/18/technology/intel-layoffs.html
[8] The Hill. (2023, August 19). Intel receives $8 billion in federal funding under CHIPS Act. Retrieved from https://thehill.com/policy/technology/3828452-intel-receives-8-billion-in-federal-funding-under-chips-act
[9] South China Morning Post. (2023, January 14). Intel’s Lip-Bu Tan is actively devoted to Chinese and Asian markets, Chinese state media says. Retrieved from https://www.scmp.com/tech/enterprises/article/3191684/intels-lip-bu-tan-actively-devoted-chinese-and-asian-markets
[10] Reuters. (2023, March 17). Intel CEO Lip-Bu Tan invested in Taiwan Semiconductor Manufacturing Company and China's SMIC. Retrieved from https://www.reuters.com/business/us-house-committee-raises-concerns-about-intel-ceos-investments-china-2023-03-17/
[11] The Wall Street Journal. (2023, February 10). Tom Cotton Warns of Chinese Spies in U.S. Tech Industry. Retrieved from https://www.wsj.com/articles/tom-cotton-warns-of-chinese-spies-in-u-s-tech-industry-11675824600
[12] The Hill. (2023, May 17). Cotton demands probe into Chinese citizens working for defense contractors. Retrieved from https://thehill.com/policy/national-security/3817989-cotton-demands-probe-into-chinese-citizens-working-for-defense-contractors/
- The political controversy surrounding Intel CEO Lip-Bu Tan's investments in Chinese companies, some allegedly linked to the Chinese military and Communist Party, also engulfs the tech industry, with Senator Tom Cotton expressing concerns about Chinese spies potentially working at tech companies and defense contractors.
- Despite the scrutiny over his ties to Chinese chip firms, Tan continues to invest in strategic technology sectors, such as Taiwan Semiconductor Manufacturing Company and China's state-owned enterprise SMIC, sparking further policy debates on finance, entrepreneurship, and technology in the context of war-and-conflicts and policy-and-legislation.
- Meanwhile, Tobin's leadership at Intel faces challenges not only from political pressures but also from the competitive landscape in the chipmaking market. Intel has lagged behind more nimble chipmakers and is embarking on a restructuring process, shedding thousands of workers and cutting expenses.
- Amidst these challenges, the company has received support from the Biden administration's CHIPS Act, securing over $8 billion in federal funding to advance US national and economic security interests and boost its technological capabilities in areas such as semiconductors, quantum computing, and artificial intelligence. This strategic investment aims to bolster the company's global competitiveness while ensuring business integrity and compliance with relevant policies and legislation.
