Intel shares tumble after President Trump publicly called for the resignation of CEO Lip-Bu Tan, citing serious national security concerns over Tan’s connections to Chinese semiconductor firms. In a Truth Social post, Trump stated, “Intel Chief Executive Lip-Bu Tan is highly CONFLICTED and must resign immediately. There is no other solution to this problem.”

The move follows mounting political pressure. Senator Tom Cotton, chairman of the Select Committee on Intelligence, sent a formal letter to Intel’s board chairman Frank Yeary, questioning Tan’s past investments in Chinese tech firms, including his leadership at Cadence Design Systems. The company, which pleaded guilty in July to violating U.S. export controls, had sold products to China’s National University of Defense Technology, a military-affiliated institution.

“Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” Cotton wrote, adding that Tan’s associations “raise questions about Intel’s ability to fulfill these obligations.”

Intel, a key beneficiary of the Biden-era Chips and Science Act, has received nearly $8 billion in federal funding for domestic manufacturing projects, including facilities that will support the U.S. military.

In response, Intel said it remains “deeply committed to the national security of the United States and the integrity of our role in the U.S. defense ecosystem,” and pledged to address the senator’s concerns directly.

Tensions surrounding U.S.-China economic ties have become one of the few bipartisan issues in Washington, with both parties increasingly pressuring U.S. companies over connections to Beijing. Lawmakers have also recently scrutinized the Biden administration's decision to allow Nvidia to resume AI chip shipments to China, warning of national security risks.

Adding to the geopolitical and corporate drama, Taiwanese media outlet MNews reported that the U.S. is pressuring TSMC to acquire a 49% stake in Intel and invest an additional $400 billion in U.S. operations. This potential deal is reportedly tied to negotiations over reducing the U.S. import tariff on Taiwanese chips from 20% to 15%, aligning it with tariffs for Japan and South Korea.

If such a deal materializes, it would represent one of the most aggressive efforts by Washington to reshape the global semiconductor supply chain—and could mark the beginning of a historic realignment in the chip industry.

It could also be a strategic move to push Intel’s chip foundry to catch up with TSMC, the world’s most advanced semiconductor manufacturer. Once a dominant chip giant, Intel now lags far behind TSMC and Nvidia, having missed the AI boom and fallen behind in technological capabilities. Reviving Intel’s leadership could become a key focus of Trump’s broader effort to prioritize “Make America Great Again” through tech and manufacturing independence.