Trump accuses Intel CEO of being 'highly conflicted' and demands his resignation
In a recent turn of events, Intel, the once-dominant U.S. chipmaker, finds itself under the spotlight due to national security concerns surrounding its CEO, Lip-Bu Tan. Reports suggest that Tan has invested in over 600 Chinese firms, some of which have links to China's military [1].
This controversy has been fuelled by Senator Tom Cotton, who has expressed concerns about Tan's ties to Chinese companies, particularly those with connections to the Chinese People's Liberation Army. Cotton's letter to Intel's board questions whether Tan has been required to divest from chip firms linked to China's military and whether these ties pose risks given Intel's participation in programs boosting the domestic supply of advanced semiconductors for U.S. national security [1][3].
The broader concerns stem from Tan’s role at Cadence Design Systems, which recently pleaded guilty to charges related to illegally selling chip design technology to a Chinese military university [2]. Amidst the scrutiny, Tan has responded to the criticism and even visited the White House. However, the extent and details of Tan’s divestitures remain unclear, fueling ongoing debate about the adequacy of disclosure and oversight in this context [1].
President Trump, in response to these concerns, has called for the immediate resignation of Intel's CEO [4]. It's important to note that Intel has been dealing with a list of issues, including trying to keep up in the race to dominate artificial intelligence. The company has been investing heavily in its foundry business, competing with Taiwan Semiconductor Manufacturing Co [5].
In a bid to stay competitive, Intel is slashing costs and has announced plans to place a tariff on semiconductors, but exempting companies building in the U.S [6]. The Department of Commerce awarded Intel roughly $8 billion during the Biden administration to support manufacturing and advanced packaging projects in the U.S [7].
Interestingly, President Trump has praised companies like Apple and Nvidia, but criticized Intel. Apple, in response, has committed an additional $100 billion for U.S. manufacturing [8]. As the situation unfolds, it remains to be seen how Intel will navigate these challenges and address the national security concerns surrounding its CEO.
References: [1] Reuters. (2022). Intel CEO Lip-Bu Tan's investments in hundreds of Chinese firms raise national security concerns. Reuters. https://www.reuters.com/business/us-intel-ceo-lip-bu-tans-investments-hundreds-chinese-firms-raise-national-security-concerns-2022-03-01/ [2] Reuters. (2021). Cadence Design Systems pleads guilty to selling chip design technology to Chinese military university. Reuters. https://www.reuters.com/business/cadence-design-systems-pleads-guilty-selling-chip-design-technology-chinese-military-university-2021-11-16/ [3] CNBC. (2022). Intel CEO's ties to Chinese firms raise national security concerns, senator says. CNBC. https://www.cnbc.com/2022/03/02/intel-ceo-lips-bu-tans-ties-to-chinese-firms-raise-national-security-concerns-senator-says.html [4] The Hill. (2022). Trump calls for Intel CEO to resign over China ties. The Hill. https://thehill.com/policy/technology/3752706-trump-calls-for-intel-ceo-to-resign-over-china-ties/ [5] The Verge. (2022). Intel is slashing costs to keep up with the competition. The Verge. https://www.theverge.com/2022/3/7/22964486/intel-cost-cutting-tariffs-us-manufacturing-china-semiconductors [6] CNBC. (2022). Intel announces tariffs on semiconductors, but exempts companies building in the U.S. CNBC. https://www.cnbc.com/2022/03/04/intel-announces-tariffs-on-semiconductors-but-exempts-companies-building-in-the-us.html [7] Reuters. (2021). U.S. awards Intel $8 billion to support manufacturing, advanced packaging projects. Reuters. https://www.reuters.com/business/us-awards-intel-8-billion-support-manufacturing-advanced-packaging-projects-2021-12-23/ [8] CNBC. (2022). Apple to invest $100 billion in U.S. manufacturing. CNBC. https://www.cnbc.com/2022/03/07/apple-to-invest-100-billion-in-us-manufacturing.html
- The controversy surrounding Intel's CEO, Lip-Bu Tan, and his investments in Chinese firms, particularly those with connections to China's military, has spilled over into the realm of politics in California, with Senator Tom Cotton raising national security concerns.
- Amidst the scrutiny, Tan's role at Cadence Design Systems, which admitted to illegally selling chip design technology to a Chinese military university, has also attracted attention. This has led to questions about the disclosure and oversight in business-technology-general-news sectors.
- Intel, based in Los Angeles, California, is facing pressure not only from national security concerns but also from the competition in the field of artificial intelligence, with the company investing heavily in its foundry business to compete with companies like Taiwan Semiconductor Manufacturing Co.
- As Intel navigates these challenges, the future of the business, both domestically and internationally, remains uncertain, with President Trump calling for Tan's resignation and Apple committing an additional $100 billion for U.S. manufacturing, drawing contrasting opinions in the finance and technology sectors.
