Embattled Intel CEO Lip-Bu Tan pushed back on “misinformation” over his alleged financial ties to China after President Trump called on him to resign over a potential conflict of interest.
“I want to be absolutely clear: Over 40+ years in the industry, I’ve built relationships around the world and across our diverse ecosystem – and I have always operated within the highest legal and ethical standards,” Tan wrote in the letter to Intel staffers on Thursday.
He went on to say that the company — which last year was awarded $8.5 billion under the Biden administration’s CHIPS Act — is working with the Trump administration to address the issues being raised.
Tan has come under fire from both Trump and Sen. Tom Cotton, the chair of the Senate Intelligence Committee, over the Intel chief’s past investments in Chinese companies with ties to the Beijing and the military.
In a post on his Truth Social platform Thursday morning, Trump wrote that Tan is “highly CONFLICTED and must resign, immediately.”
That missive came a day after Cotton (R-Ark.) sent a letter to Intel Chairman Frank Yeary demanding answers about Tan’s financial dealings because he is concerned “about the security and integrity of Intel’s operations and its potential impact on US national security.”
A Reuters report earlier this year claimed Tan invested at least $200 million across hundreds of Chinese firms – some with links to the military – between March 2012 and December 2024.
Cotton also raised concerns over Tan’s tenure as CEO at Cadence Design, which last week agreed to pay more than $140 million to settle charges that it sold chips to a Chinese military institution, according to Reuters.
In Tan’s memo Thursday, he said that Intel’s board is “fully supportive.”
However, the beleaguered boss has been emroiled a power struggle with Intel’s board since taking over as CEO in March, sources familiar with the matter told the Wall Street Journal.
The crux of the tensions revolves around whether Intel should continue to manufacture its own chips or exit the business entirely to cut down on costs, according to the report.
While Tan has pushed to keep Intel’s own production in place, some board members, led by Yeary, are trying to spin off or sell the money-losing unit, sources said.
Yeary has even held talks with Nvidia and Amazon about buying pieces of the business, and explored a potential sale to chipmaker TSMC, according to the Journal.
Tan, who was born in Malaysia and grew up in Singapore, replaced ousted CEO Pat Gelsinger following dismal earnings and several rounds of layoffs.
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