Donald Trump demanded the “”immediate resignation”” of Intel CEO Lip-Bu Tan due to investments in China, but after a good conversation, Intel is back in favor at the White House.
Lip-Bu Tan personally met with Donald Trump at the White House to smooth things over. According to Intel, the “”constructive conversation”” opens the door to collaboration between the chipmaker and the government, but it’s still unclear how that would be implemented. Tan may be allowed to submit proposals himself.
Just a few days ago, Trump felt that Lip-Bu Tan could no longer remain as Intel’s CEO. In his usual style, he took the fight to social media. Trump called the Intel CEO “”conflicted”” and demanded his “”immediate”” resignation. Now his tone is much milder, even offering cautious compliments to Tan via his Truth Social channel.
Chinese Investments
Tan came into Trump’s sights through a Republican party associate. Senator Tom Cotton wrote to Intel’s board about alleged ties between the CEO and China. Tan has previously invested in several Chinese companies.
Through investment funds based in the United States and Hong Kong, Tan holds shares in dozens of Chinese technology companies, reveals Reuters. One of the most notable names on the list is SMIC, the largest Chinese chip manufacturer. Tan severed all ties with SMIC a few years ago after it was blacklisted by the United States.
It is primarily his past at Cadence Design Systems, which develops and sells chip designs, that is now haunting Tan. Until 2021, he was the CEO of the company, and until 2023, he served on the board. Cadence is an American company but was recently fined 140 million dollars for selling chip designs to Chinese customers against the restrictions.
Clean Slate
Intel reportedly had little interest in searching for a new CEO. Lip-Bu Tan has only been “on the job since March” following the “surprising departure” of Pat Gelsinger. The American senator seriously questioned Tan’s appointment and wanted to know from Intel whether it had thoroughly screened its new CEO.
Tan has been given the difficult task of steering the Intel ship back in the right direction. Intel may still be the absolute market leader in computer chips, but it has lost much of its technological leadership to competitors in recent years and is also taking financial hits. The new CEO spares no one: in addition to “many layoffs” and the “spinning off” of less important divisions, Intel also scrapped the construction plans for “its European chip factory.”
This article originally appeared on August 8 and was updated with the latest information.