Michelle Chapman, David Klepper, Diddy Tan, Associated Press
Intel shares fell on Thursday after President Donald Trump said in a social media post that the chipmaker’s CEO should resign.
“Intel CEOs are very conflicted and must resign immediately,” Trump posted to The Society of Truth. “There is no other solution to this problem. Thank you for paying attention to this problem!”
After Sen. Tom Cotton sent Intel Chairman Frank Yearly a letter to Chairman Frank Inai, who expressed concern about CEO Lip Beau Tang’s investment and relationship with semiconductor companies reportedly linked to China’s Communist Party and the People’s Liberation Army, Trump created the post after Trump asked the board whether Tan sold his interest in these companies and eliminated conflicts of interest.
It is not immediately clear whether Tan sold interest in the company, as Intel did not respond immediately to requests for comment.
“In March 2025, Intel appointed Lip Butane as its new CEO,” Cotton wrote in the letter. “Tang is reportedly controlling dozens of Chinese companies and has stakes in hundreds of advanced Chinese manufacturing and chip companies. At least eight of these companies are reportedly linked to the People’s Liberation Army.”
Tan, who took over as CEO in March, previously launched venture capital firm Walden International in 1987, focusing on high-tech startups, including chip makers. China’s state-run media is “actively” investing in Taiwanese semiconductor manufacturers as well as Chinese state-owned enterprise SMIC, which is dedicated to the Chinese and Asian markets, and is trying to improve China’s chip-making capabilities.
Trump and Cotton demands are increasingly focusing on economic and political competition between the US and China over chips, AI, and other digital technologies that experts say will shape future economic and military conflicts.
Cotton, chairman of the Senate Intelligence Email Committee, raised concerns that Chinese spies could be working for high-tech companies and defense contractors. Use their positions to steal secrets that allow China to access classified systems and networks or plant digital backdoors.
On Thursday, an Arkansas Republican urged the Department of Defense to urge Pentagon secret Pete Hegses to ban all non-US citizens from their jobs in order to ensure access to the DOD network. He also calls for an investigation of Chinese citizens working for defense contractors.
“The US government recognizes that China’s cyber capabilities pose one of the most aggressive and dangerous threats to the United States, as evidenced by the penetration of critical infrastructure, communications networks and supply chains.”
National Security Authorities have linked Beijing to hacking campaigns targeting prominent Americans and key US systems.
“U.S. businesses receiving government grants must be head of taxpayer dollars and adhere to strict security regulations,” Cotton wrote on Social Platform X.
Intel is a beneficiary of the Biden administration’s Chips Act and has received more than $8 billion in federal funds to build computer chip plants around the country.
The California company’s shares slipped 3.5%, but the market, particularly the high-tech Nasdaq, has taken its place.
Founded in 1968 at the start of PC Revolution, Intel has missed the technological shift to mobile computing triggered by Apple’s 2007 iPhone release, slowing down the lighter chip maker. Intel troubles have been expanding since the advent of artificial intelligence. It is a booming area where chips made by former horse rival Nvidia become the hottest high-tech commodity.
Intel is cutting thousands of workers and cutting costs, including some domestic semiconductor manufacturing capabilities, as Tan tries to revive the fate of the chipmakers he struggles with.
Original issue: August 7, 2025, 8:34am EDT
