WASHINGTON, D.C.: President Donald Trump demanded that Intel CEO Lip-Bu Tan step down immediately, calling him "highly conflicted" over his past investments in Chinese technology firms, some linked to the Chinese military.

Reuters previously reported that Tan, through personal and venture fund investments, put at least US$200 million into hundreds of Chinese advanced manufacturing and chip companies between 2012 and 2024. Many of the firms were identified by U.S. analysts as having military connections.

"The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," Trump wrote on Truth Social.

His remarks came after Republican Senator Tom Cotton sent a letter to Intel's board chair questioning Tan's Chinese business ties and a recent criminal case involving Cadence Design, Tan's former company.

Intel shares fell three percent this week. The company said it, its board, and Tan remain committed to "advancing U.S. national and economic security interests" and aligning with Trump's "America First" agenda. Tan did not respond to Reuters' request for comment.

Trump's intervention is unusual for a sitting president and has drawn mixed reactions from investors. "It would be setting a very unfortunate precedent … but certainly his opinion has merit and weight," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.

Bernstein analyst Stacy Rasgon said Tan's China links were "creating an increasingly bad look" and noted he lacks the personal relationship with Trump that some other tech CEOs have built.

Tan, a Malaysian-born Chinese American, became Intel CEO in March after Pat Gelsinger was ousted. Earlier this year, Reuters reported on 20 funds and companies in which Tan's Walden venture firm was a co-owner alongside Chinese government entities. Some investments were listed as current in Chinese databases despite a source telling Reuters that Tan had divested.

While CEO of Cadence from 2008 to 2021, Tan oversaw sales of chip design software to a Chinese military university. Last month, Cadence agreed to plead guilty and pay over $140 million to resolve U.S. charges tied to those sales.

Intel, once a leader in chip manufacturing, has been losing market share in data centers and PCs to AMD and missed the surge in AI chips dominated by Nvidia. Its market value has dropped below $100 billion, down from highs before a more than 60 percent plunge last year.

Tan has shifted strategy, cutting jobs, shelving planned plants, and slowing work on its Ohio factory, now set for completion in 2030–31. The site was a significant beneficiary of $8 billion in CHIPS Act subsidies. Ohio Senator Bernie Moreno has suggested a fraud investigation into Intel's state commitments.