Trump Pressures Intel CEO to Resign Over China Ties

Close on the heels of news reports that Intel CEO Lip-Bu Tan was red-flagged by Republican Senator Tom Cotton, who questioned Tan’s close ties and investments in a bunch of Chinese firms, the US President Donald Trump has urged Tan to step down as CEO of Intel, citing a conflict of interest.

The announcement was made via Truth Social sometime back, and Trump in a post said: “The CEO of Intel is highly CONFLICTED and must resign, immediately,” the post read. “There is no other solution to this problem.”

This is one of those rare occurrences of a President of a country asking a CEO to resign. This has indeed sent shockwaves through the tech industry and Wall Street. And increasingly, it looks like a typical Trump template—a mixture of coercion and bullying to get things done.

Let’s here unpack what really provoked Trump to make such a statement.

While Trump did not elaborate further in the post, the comment appears to have originated from growing concerns over Tan’s previously known financial and board-level ties to Chinese technology firms. Tan, who succeeded Pat Gelsinger earlier this year, has served on the boards of several Chinese companies, including those with links to Beijing’s semiconductor and AI strategy. Critics argue that such affiliations could pose national security concerns given Intel’s role in critical chip development.

Intel Shares Tumble and Markets Go Jittery

While Intel has not yet issued an official response, chatter on social platforms suggests that the company’s board is standing by Tan for now. Many consider this a politically motivated attack and believe it’s unfair to target Tan, who has decades of semiconductor experience and was seen as an ‘Intel Reviver’.

But the market, however, responded swiftly. Intel shares fell over 3% in early trading, reflecting investor anxiety about potential political intervention in corporate governance and the larger implications for U.S. tech policy.

Is This Political Interference or Strategic Posturing?

While it’s not uncommon for presidents to weigh in on matters of national security and economic interest, public calls for corporate resignations are extremely rare—and controversial.

Still, Trump’s move may resonate with his political base amid escalating anti-China sentiment and a push to onshore chip manufacturing. The Biden administration’s CHIPS Act was already aimed at reducing U.S. dependence on foreign—particularly Chinese—supply chains. Trump appears to be taking that narrative further into the boardroom.

Does the US President Have the Power to Say This?

Like many, if you are wondering, can the POTUS say this? Ask a CEO of a publicly traded behemoth to resign? The simple answer is that he does not have the legal authority to unilaterally remove or force the resignation of a CEO. This is a power vested in the company’s board of directors and shareholders, not the executive branch of the government.

Having said that, let’s look at how this can happen indirectly through the powers vested. While a U.S. president cannot fire a CEO, available information suggests that there are legal and policy levers the executive branch can use to influence corporate decisions. For instance:

Making it a national security issue by using instruments such as the Committee on Foreign Investment in the United States (CFIUS), which can investigate and block investments or deals involving national security concerns. Also, under laws like the International Emergency Economic Powers Act (IEEPA), presidents can impose sanctions or restrictions if a company is linked to foreign adversaries.

And presidents can use the bully pulpit to shape public opinion and pressure companies, as Trump often does. For instance, immediately after his Truth Social post, Intel shares went down.

Finally, in the garb of regulatory scrutiny, agencies under executive control like the SEC, Federal Trade Commission (FTC), DOJ, and Commerce Department, can open investigations—but these require legal justification, not personal opinion.

A Brewing Clash Over Tech Leadership

Interestingly, Trump has recently indicated that he is going to put a 100% tariff on computer chips and is now asking the CEO of one of the world’s biggest chip companies to resign. Clearly, this unprecedented ask raises complex questions for the semiconductor industry. Can leaders with global backgrounds navigate the political landmines of U.S.-China tensions? Will political pressure start to shape executive leadership in strategic industries?

More broadly, the episode may further strain already-tense relations between Silicon Valley and Washington.

As for Intel, all eyes are now on the boardroom. Will they back their CEO, or bow to mounting political pressure? Either way, this indicates the complex powerplay of geopolitical tensions and its impact—not just on industries, but on leadership as well.