Chipmaker Intel is the latest technology company to face political pressure from President Trump.
On Thursday, Trump called for the immediate resignation of INTEL CEO Lip-Bu Tan, who took the helm in March to turn around a company that was tied to the company.
“The CEO of Intel is very conflicted and must resign immediately. There is no other solution to this problem. Thank you for your attention to this issue!” Trump wrote on his social media platform, Twitter.
Trump did not say what the conflicts were in his position, but his remarks came after Sen. Tom Cotton (R-Arm.) sent a letter to Intel’s board expressing national security concerns about Tan’s reported ties to Chinese companies. Cotton cited a Reuters report that said Tan has invested in more than 600 Chinese companies, some of which have ties to the country’s military.
Trump’s call for Tan’s resignation adds to the list of issues that already need to be addressed.
The 57-year-old technology company, once the most valuable U.S. chipmaker, is trying to keep up as the race to compete heats up. The Santa Clara, Calif.-based company has been losing money and seeing its stock price fall as it lags behind rivals like Nvidia and Advanced Micro Devices.
Intel’s stock price closed at $19.77 on Thursday, down 3%.
The company said in a statement that its board and Tan are “deeply committed to advancing U.S. national and economic security interests and are making significant investments aligned with the President’s America First agenda.”
Trump said Wednesday during an event where Apple announced an additional $100 billion investment in the United States that he plans to put tariffs on semiconductors, but that the U.S. will not pay for the companies’ construction.
Although he praised companies like Apple and Nvidia, he criticized Intel.
“Intel just took over the coal. Frankly, they were taken to the cleaners and moved to other places, especially Taiwan,” Trump said at the event.
Intel, known for being the “brains” behind Power Computer, has invested heavily in its foundry business, taking on Taiwan Semiconductor Manufacturing Co., which makes chips for companies including Apple and NVIDIA. During the Biden administration, the Commerce Department awarded Intel about $8 billion to support manufacturing and improved packaging projects in the U.S.
