Trump calls on “very conflicted” Intel CEOs to step down Chinese ties
US President Donald Trump on Thursday called for the immediate resignation of New Intel CEO Rip Butane, calling him “very conflicted” due to his relationship with Chinese companies.
The top Intel executives fought back against President Donald Trump, who called for his resignation over a conflict of interest reported earlier this week.
Chief Executive Lip-Bu Tan lamented the spread of “misinformation” about his track record and said he committed to the company after Trump called him to step down due to his relationship with Chinese companies.
In April, Reuters reported exclusively that TAN had invested at least $200 million in hundreds of Chinese military and chip companies.
The CEO’s public letter came on the same day that Trump criticized him for reporting his investment in a post from Truth Social, his platform. The president added that “there is no other solution to this problem,” and called on Tan to “resign immediately.”
“I know there was a lot of stuff in the news today, and I want to take some time to deal with you in person,” Tan’s letter begins.
“I absolutely want to be clear. For over 40 years in the industry, I have built relationships around the world and across our diverse ecosystem. And I have always been working within the highest legal and ethical standards.”
The senator questioned Intel CEO’s relationship with Chinese companies
The backlash and reaction came after Republican Sen. Tom Cotton raised questions about Tan’s relationship with Intel and recent criminal cases, including his former company Cadence Design System.
The U.S. Army veteran and lawyer who is an Arkansas legislator, cited Reuters’ past reports on Tan’s investment.
Cotton previously asked the chair of the Fortune 500 company’s board of directors to respond to questions about Tan’s relationship with China. This includes investments in semiconductor companies in the country and other companies that have ties to the military.
“There’s been a lot of misinformation about my past roles at Walden International and Cadence Design Systems,” Tan wrote in an August 7 letter. “My reputation is built on trust. I do what I say and do it the right way. This is the same way I guide Intel.”
“We are involved with the administration to address the issues raised and to ensure that they ensure facts,” the letter continues. “I fully share the President’s commitment to promoting national and economic security in the United States. I am grateful for his leadership in moving forward these priorities. I am proud to lead a central company with these goals.”
The newly appointed CEO continued to inform advance employees that Intel is supporting the board that its members “fully support the work they do to transform our company, innovate our customers and execute discipline.”
Intel announced layoffs in April
In continuing Intel’s struggle in recent years, the California-based company announced plans to fire thousands of employees in April as part of a company-wide cost-cutting push organized by TAN.
At the time, USA Today reported that its CEO had hinted at job cuts that could “have several months.”
Contributions: Kathryn Palmer and Russwills with the Republic of Arizona, part of the USA Today Network.
Natalie Neysa Alund is a senior reporter at USA Today. Contact her at nalund @usatoday.com and follow her at x @nataliealund.
