Intel's CEO rejects President Trump’s 'deeply conflicted' comments over $200M China investments
Intel boss Lip-Bu Tan dismissed President Donald Trump’s statements over his career as “incorrect.” The American President had earlier called out the tech executive for being “highly conflicted” and asked him to step down.
In a staff letter released Thursday, Tan wrote that Intel is working with the Trump administration to resolve the matters in question, defending his commitment to the country. He claimed that in his more than 40 years in the industry, he has “always operated within the highest legal and ethical standards.”
Tan has invested over $200 million in several Chinese firms
Tan’s letter to employees came just hours after President Trump called for his resignation in a Truth Social post.
The president did not, however, specify what he thought were Tan’s conflicts of interest, but his criticism came after Senate Intelligence Committee chair Tom Cotton, a Republican, wrote to the Intel board citing worries about the company’s security, integrity, and Tan’s connections to China.
His letter outlined much of Tan’s prior investment activity in China and Cadence’s legal issues, and he even questioned whether the CEO had disclosed any remaining holdings to the U.S. government in light of Intel’s sensitive defense contracts.
The semiconductor executive has long supported Chinese technology companies, especially Semiconductor Manufacturing International Corp (SMIC), the nation’s biggest chipmaker. Reports claim that he invested over $200 million in his former capacities between March 2012 and December 2024.
Like the NFL and other industries, Walden Capital still works with 20 levels that invest largely in Chinese funds, and at least eight have direct military connections in China. Adding further to the fire, before Intel, Tan was the chief executive of Cadence Design Systems, which earlier this month settled with the U.S. government for $140 million after it violated export rules by providing enterprise chip design software to a Chinese university heavily affiliated with its military.
Tan is, however, facing scrutiny for reasons that extend past his ties to China. According to the Wall Street Journal, the company’s board has reportedly halted his recent initiatives to raise new capital and acquire AI businesses, exposing core disagreements about Intel’s future — including the question of exiting manufacturing entirely.
Tan cut costs and secured an $8 billion investment for Intel
Since Tan took over at Intel, he has introduced broad cost-cutting measures. Last month, he even cautioned that developing the company’s next-generation manufacturing technology could be halted if a large customer is not secured.
The company also recently secured $8 billion through the CHIPS Act, the largest grant given to a single firm to boost domestic manufacturing.
Intel’s CEO has even affirmed that the board is “fully supportive” of its transformation plans. However, Trump’s intervention further complicates matters for an executive already under pressure from Wall Street and his board.
Nonetheless, Tan insists he has called the United States home for over 40 years, and thus cherishes the country. He added that he is profoundly thankful for the opportunities it has provided and deeply values his connection to the company.
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