Intel CEO Lip-Bu Tan Faces White House Scrutiny Amid Internal Strife and Trump’s Call for Resignation

Intel’s CEO, Lip-Bu Tan, is currently at the center of a swirling controversy, facing intense scrutiny from the White House and mounting internal pressures. Appointed last March, Tan’s initial takeover brought a 13% stock surge, signaling renewed market confidence. However, weeks of escalating internal tensions have now drawn the attention of Washington, making Intel’s position increasingly precarious.

For months, internal pressure has been building within the tech giant. Tan, succeeding Pat Gelsinger, was seen by many as a catalyst for a strategic reset, swiftly moving to cut projects, jobs, and divisions to refocus Intel on core opportunities and regain market trust. Yet, this initial optimism has been overshadowed by internal strife, exacerbated by growing uncertainty around tariffs and significant setbacks in Intel’s roadmap, including persistent yield issues with its next-generation 18A process.

The situation dramatically escalated today with former President Donald Trump publicly demanding Tan’s resignation. Trump cited Tan’s “highly conflicted” ties to China, a reference many link to Tan’s previous leadership role at Cadence Design. Cadence recently pleaded guilty in a Justice Department investigation for allegedly selling chip-design products to a Chinese military university, as reported by The Wall Street Journal. This settlement had already raised alarms in Washington, prompting at least two Republican Senators to question Tan’s suitability and urge the board to consider new leadership. Trump’s remarks further intensified the crisis.

Despite the internal disagreements over critical issues, including Intel’s future in chip manufacturing, the company has publicly affirmed its support for Tan. Following Trump’s call for his ouster, Intel’s stock plummeted 3% today, falling back to its pre-appointment levels. While shares had dipped similarly in recent weeks due to tariff uncertainties, today’s decline signals a potentially broader unraveling, especially if Tan’s position faces increased scrutiny in Washington, pushing Intel into unprecedentedly challenging territory.

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