The political and media pressure on Lip-Bu Tan is intensifying after the publication of a letter from Senator Tom Cotton and the reaction from former U.S. President Donald Trump on Truth Social.
Former President Donald Trump has publicly called for the immediate resignation of Lip-Bu Tan, the current CEO of Intel, accusing him of posing a threat to national security. The message was posted from his social media platform, Truth Social, accompanied by a letter sent by Republican Senator Tom Cotton to Intel’s leadership, outlining concerns about the executive’s alleged ties to Chinese technology companies with military links.
Lip-Bu Tan was appointed CEO of Intel in March 2025 following the sudden departure of Pat Gelsinger, who reportedly was forced to resign by the board. However, Tan’s arrival has reignited old fears regarding potential Chinese Communist Party influence over key U.S. tech firms.
The Allegations
Cotton’s letter highlights three main issues:
Tan’s Ties to Chinese Companies: Over more than a decade, Lip-Bu Tan invested over $200 million in hundreds of Chinese tech firms, some allegedly connected to the People’s Liberation Army of China.
Background with Cadence Design Systems: The firm Tan previously led pleaded guilty to illegally selling technology to a Chinese military university. Cotton states these actions occurred under Tan’s direct leadership.
Conflicts of Interest: Questions are raised about whether Tan properly disclosed his financial and business relationships with China to the U.S. government, especially concerning federal contracts like the Secure Enclave program.
Cotton, a staunch advocate of a hardline stance against Beijing, demands immediate answers regarding whether Intel’s board thoroughly investigated these issues before hiring Tan, whether the executive divested his Chinese investments, and if any potential conflicts of interest were reported to federal authorities.
Economic and Political Impact
Trump’s and Cotton’s statements haven’t gone unnoticed in the markets. Intel’s stock price dropped by 3.25%, falling below $20 per share, a significant decline from its historical highs and well below competitors like AMD, whose shares currently exceed $175.
This stock market gap not only reflects Intel’s recent decline but also casts doubt on the future of Intel Foundry, the strategic division aiming to regain leadership against TSMC, Samsung, and other industry giants.
Trump, who has made confrontation with China a central theme of his political rhetoric, remarked that a company which has received nearly $8 billion in subsidies from the CHIPS and Science Act should not be led by someone with “questionable ties to the Chinese Communist Party.”
What’s Next?
Intel has yet to release an official response to the allegations or Trump’s direct call for action. However, media and political pressure continues to grow, particularly as voices within the Republican Party are calling for a review of Tan’s appointment and potential regulatory consequences if transparency isn’t maintained.
This controversy emerges at a critical moment when the U.S. is embroiled in a technological war with China, working to strengthen its chip independence through strategic investments, public subsidies, and international alliances.
Lip-Bu Tan, a Malaysian-born businessman with extensive experience in Silicon Valley and Asian tech investments, now finds himself at the epicenter of a new conflict involving politics, national security, and industry.
Frequently Asked Questions
Who is Lip-Bu Tan, the current CEO of Intel?
He is a well-known tech executive who previously led Cadence Design Systems and has invested in dozens of technology companies, many in China. He was appointed CEO of Intel in March 2025.
Why is his appointment being questioned?
Due to his past investments in companies linked to the Chinese military and a guilty plea by Cadence Design Systems under his leadership for selling technology to a Chinese military university.
What are the implications for Intel?
It could face increased regulatory scrutiny, affect its government contracts, and negatively impact its stock value and long-term strategy.
What is the CHIPS and Science Act?
A U.S. law providing public funds to boost semiconductor manufacturing in the country. Intel has received nearly $8 billion through this program.