Trump says Intel CEO 'must resign immediately' as US senator questions Lip Bu Tan's China ties

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Intel really can't catch a break. With momentum building around the idea that the company will probably have to spin off its ailing chip factories to survive, now the President of the United States of America, Donald J. Trump, has called for the immediate resignation of Intel CEO Lip Bu Tan.

Trump's post earlier today on Truth Social reads in full, "The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!"

While that is a pretty shocking message for the Intel CEO and Intel more broadly, it is perhaps not entirely surprising. That's because US Republican Senator, Tom Cotton, recently raised questions with Intel's board regarding Lip-Bu Tan's associations with Chinese firms and a criminal case involving his former company, Cadence Design.

According to Reuters, "Cotton asked in the letter to Intel chairperson Frank Yeary whether the company's board was aware of the subpoenas sent to Cadence during Tan's time there as CEO before Intel hired him. Cotton asked what measures were taken to address those concerns."

In reply Intel told Reuters, "Intel and Mr. Tan are deeply committed to the national security of the United States and the integrity of our role in the U.S. defense ecosystem," and indicated that it would address the matters raised by Senator Cotton, though it's not clear when or how.

Cotton reportedly also asked whether Intel's board had required Tan to divest any holdings linked to the Chinese military or Communist Party, and likewise if Tan had fully disclosed his Chinese ties as part of Intel's involvement in the Secure Enclave programme, which is designed to ensure the secure supply of microelectronics for defence.

Exactly what happens from here and how serious this will turn out to be is anyone's guess. At best, Trump's Truth Social diktats come and go with dizzying velocity. Is this one that the 47th President will stick with or quickly forget?

Either way, it definitely comes at an absolutely terrible time for Intel, with the company itself admitting that it hasn't won any significant customers for its new 18A chip production tech and conceding that if things don't go better for the node that follows, known as 14A, then it may have to give up on cutting-edge chip production altogether.

So, the last thing Intel needs right now is a scandal involving its CEO and perhaps even his forced departure. Quite how the company and its workforce can be expected to stay focussed on the very challenging technical tasks at hand with this chaos going on, one can only speculate. But you have to worry for Lip Bu Tan's longevity at Intel, that's for sure.

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