Intel’s Stock Sinks As Trump Calls For CEO’s Resignation
The stock of chipmaker Intel (INTC) fell 3% after U.S. President Donald Trump publicly called for the resignation of Chief Executive Officer (CEO) Lip-Bu Tan.
In a social media post, President Trump wrote that Tan is “highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
The president’s comments come after some lawmakers in Congress questioned Tan’s ties to China and referenced a past criminal case involving Cadence Design Systems (CDNS), where Tan was CEO until 2021.
Tan was named Intel’s CEO in March as the company undertakes a multiyear turnaround strategy aimed at reversing declining sales and lost market share.
In a public statement released after Trump’s social media posts, Intel wrote that it and Tan are “deeply committed to advancing U.S. national and economic security interests.”
Earlier media reports claim that Tan has invested in several Chinese companies, including some linked to the country’s military, both directly and through venture funds.
Since assuming the helm of Intel this spring, Tan has announced several cost cutting measures at Intel.
These have included cuts to the company’s foundry division, which makes microchips for other companies and posted a loss of $3.17 billion U.S. in 2024.
The company has also canceled plans for microchip factories in Germany and Poland and said it would slow construction of a major new factory being built in Ohio.
INTC stock is down 2% on the year and trading at $19.77 U.S. per share.
