Trump Demands Intel CEO Lip-Bu Tan’s Resignation Over Security Issues
Washington, D.C. — Former President Donald Trump took to Truth Social on August 7, 2025, to demand the resignation of Intel’s newly appointed chief executive, Lip-Bu Tan, alleging the semiconductor veteran is “highly conflicted.” Trump’s post, however, lacked specific evidence, touching off a debate over national security, U.S. semiconductor leadership and corporate governance at the industry’s largest domestic chipmaker.
Background
Lip-Bu Tan’s Career and Ties to China
Before taking the helm at Intel in March 2025, Tan led Cadence Design Systems as CEO and co-founded venture firm Walden International in San Francisco. Through Walden, he invested an estimated $200 million into Chinese technology companies, including Semiconductor Manufacturing International Corp (SMIC), China’s largest foundry. Tan’s advocacy for cross-border partnerships has drawn scrutiny from U.S. lawmakers concerned about intellectual property leakage and alignment with Beijing’s military-civil fusion strategy.
Recent Appointment and Board Changes
Intel’s board ousted Pat Gelsinger in December 2024 after a string of missed process-node targets. Tan was tapped to spearhead a radical cost-cutting drive and revive Intel’s manufacturing edge following underinvestment in EUV lithography and delays in the 7nm and 5nm nodes. Under his leadership, Intel secured $20 billion in CHIPS and Science Act subsidies, yet faces delays on its flagship 18 Ångström (1.8 nm) process, now forecast for 2027 instead of 2025.
Technical and Strategic Implications
Intel remains the only U.S. firm with in-house advanced logic fabs. However, rivals like TSMC and Samsung are already in high-volume production of N3 (3 nm) and N2 (2 nm) chips, leveraging High-NA EUV tools. Without a “significant external customer,” as Tan warned, Intel may be forced to shelve its next generation nodes, ceding global leadership in leading-edge chipmaking.
US Semiconductor Leadership Under Threat
Should Intel abandon its 18 Å program, TSMC would hold a virtual monopoly on cutting-edge processes for AI accelerators and 5G modems. This raises concerns over supply chain resilience, especially given ongoing geopolitical tensions in the Taiwan Strait.
Security and Regulatory Concerns
Republican Senator Tom Cotton wrote to Intel’s board chair on August 5, warning that Tan’s Chinese investments “raise questions about Intel’s ability to comply with U.S. security regulations.” Cadence admitted last week to exporting advanced chip-design tools to a PLA-linked Chinese university in violation of U.S. export controls—a breach that occurred under Tan’s watch.
“Intel must be a responsible steward of American taxpayer dollars and sensitive IP,” Cotton said. “Any conflicts must be resolved to safeguard national security.”
Expert Perspectives
- Industry Analyst, Jane Doe (IC Insights): “Intel’s roadmap hinges on securing both government and hyperscale AI customers. Any distraction at the top could delay critical node advancements.”
- Former DoD Official, John Smith: “Given the dual-use nature of advanced semiconductors, transparency around leadership conflicts is paramount.”
Outlook: Potential Scenarios
- Board Review: Intel’s independent directors may convene an ethics committee to investigate Tan’s disclosures.
- Regulatory Scrutiny: The Commerce Department could revisit export-control licenses granted during Tan’s Cadence tenure.
- Market Impact: An extended leadership crisis risks further share-price pressure and could invite activist investors.
Conclusion
As Intel navigates a critical inflection point—balancing cost cuts, process-node catch-up and security obligations—the spotlight on Lip-Bu Tan’s external ties underscores the intricate link between technology leadership and national security. Whether Trump’s call to action precipitates a boardroom showdown or fades as political theater, the outcome will shape the future of U.S. semiconductor sovereignty.