Trump Calls for Intel CEO to Resign, Stock Drops

Trump called for Intel CEO Lip-Bu Tan to resign in a post on the Truth Social platform. (Annabelle Chih/Bloomberg)

President Donald Trump called for Intel CEO Lip-Bu Tan to resign in a social media post on Thursday morning.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately,” the president wrote on Truth Social. “There is no other solution to this problem. Thank you for your attention to this problem!”

Intel stock dropped 3.3% to $19.74 in midday trading after the post.

The resignation demand appeared to stem from a letter Sen. Tom Cotton (R-Ark.) sent to Intel’s board chair Frank D. Yeary earlier this week raising questions about Tan’s links to Chinese firms.

“I write to express concern about the security and integrity of Intel’s operations and its potential impact on U.S. national security,” Cotton wrote in the letter, which his office made public Wednesday.

Tan, who is an American citizen, was chief executive of Cadence Design Systems from 2009 to 2021. Last week, Cadence pleaded guilty to unlawfully selling electronic design automation technology to a Chinese military university during Tan’s tenure.

Tan’s links to China come largely through his venture capital firm, Walden International, which he founded in 1987. According to Factset, 38% of Walden’s investments have been to Chinese companies, totaling $3.4 billion since 2000, to go with U.S. investments of $8.1 billion.

FactSet’s list of Walden’s investors contains many of the usual suspects, like U.S. government pension funds, university endowments, along with bank and corporate funds. But there are also two small though notable 2011 Chinese investors: the Chinese government and Semiconductor Manufacturing International, known as SMIC.

SMIC is China’s largest semiconductor contract manufacturer. Once integrated with global supply chains, in 2020 it was sanctioned by the U.S. and since then it has decoupled. The company is partially owned by the Chinese government, and it may also receive unofficial subsidies. In 2001, Walden invested in SMIC and Tan served on its board until 2018. Walden exited its SMIC position in 2021.

Walden International didn’t immediately respond to a Barron’s request for comment.

Tan began as CEO of Intel in March. Intel did not immediately respond to a request for comment.

Write to Nate Wolf at nate.wolf@barrons.com