US President Donald Trump has called for the immediate resignation of Intel's new CEO Lip-Bu Tan, claiming he is in a “highly questionable position” after questions emerged about his ties to Chinese companies and doubts were raised about the future of the US chipmaker.
“There is no other way out of this situation,” Trump said in a post on the Truth Social platform, sending Intel shares down nearly 5 percent in pre-market trading.
Intel is a major employer in Ireland, employing almost 5,000 people.
The move came a day after Reuters reported that Republican U.S. Senator Tom Cotton sent a letter to Intel's chairman asking about Tang's ties to Chinese firms and a recent criminal case involving his previous company, Cadence Design.
In April, Reuters reported that Tang — directly or through venture capital funds he created or manages — had invested in hundreds of Chinese companies, some of which have ties to the Chinese military.
Intel's CEO invested at least $200 million in hundreds of Chinese high-tech manufacturing companies and chip makers between March 2012 and December 2024, according to Reuters.
Intel did not immediately respond to a request for comment on the situation on Thursday.
The company, which once dominated the chip market, is rethinking its strategy as it seeks to regain its footing after falling behind Taiwanese rival TSMC in manufacturing. Intel also has little presence in the fast-growing AI chip market, which is dominated by Nvidia.
Tan, who took over as CEO in March after his predecessor Pat Gelsinger resigned late last year, has set a goal of cutting the company's workforce to 75,000 by the end of the year, a reduction of about 22%. Intel has also promised to take a more rigorous approach to investment in manufacturing.
Around 195 layoffs are expected at Intel's Irish operations this autumn.
Sourse: breakingnews.ie
