US President Donald Trump on Thursday (Aug 7) demanded the instant resignation of Intel’s new CEO, Lip-Bu Tan, calling him “extremely conflicted” because of his ties to Chinese language corporations and elevating doubts about the way forward for the American chip icon.
A change in management may pile stress on the corporate because it pushes via a serious strategic reset began by Tan that goals to slash prices by shrinking its workforce and halting development on a few of its deliberate manufacturing vegetation.
Trump’s feedback got here a day after Reuters reported US Republican Senator Tom Cotton had despatched a letter to Intel’s board chair with questions on Tan’s ties to Chinese language corporations and a current legal case involving his former agency Cadence Design.
Reuters reported in April that Tan – himself or via enterprise funds he has based or operates – invested in lots of of Chinese language corporations, a few of that are linked to the Chinese language navy.
“There is no such thing as a different resolution to this downside,” Trump stated in a publish on his Reality Social platform, knocking shares of Intel down round 4 per cent in US premarket buying and selling.
Intel is a key pillar of US efforts to spice up home chipmaking and final yr secured practically US$20 billion in grants and loans, the biggest federal award below the 2022 CHIPS and Science Act, to subsidize modern semiconductor manufacturing.
Intel and Tan, who took over the CEO function in March after the ousting of his predecessor Pat Gelsinger late final yr, didn’t instantly reply to Reuters requests for remark.
An Intel spokesperson stated in a press release on Wednesday that “Intel and Tan are deeply dedicated to the nationwide safety of the US and the integrity of our function within the US protection ecosystem”. The corporate stated it might deal with the issues within the letter with the Senator.
