(Image credit: Intel)

Intel CEO Lip-Bu Tan has written a letter to the company's employees after the U.S. President Donald Trump has called for Intel CEO Lip-Bu Tan to step down, pointing to alleged conflicts of interest linked to his past financial involvement with Chinese chipmakers, reports DigiTimes. In the letter, he reassured the Intel staff that he has always operated 'within the highest legal and ethical' principles and that the company is working with the U.S. gov't to address the 'misinformation' matters.

According to corporate filings transpired earlier this year, Lip-Bu Tan controls more than 40 companies in China and holds minority stakes in over 600 others through investment firms he owns or manages, with a total value of at least $200 million. Some of these businesses supply or contract with the People’s Liberation Army, and in many cases his stakes are co-held with Chinese state-owned enterprises or regional government-backed funds. While questions over Tan's background were already present when he became chief executive in March 2025, earlier this week Senator Tom Cotton sent a letter to Intel's board warning about national security risks that stem from Tan's investments while being the head of Walden International, the venture capital firm he founded in 1987 and still chairs, as well as two Hong Kong-registered entities — Sakarya Limited, which he owns outright, and Seine Limited, which is controlled by Walden.

Intel responded by stressing both the company's and Tan's alignment with U.S. strategic interests. The company reminded the U.S. government, and the nation, of more than half a century of domestic manufacturing. This includes the ongoing large-scale spending on R&D and semiconductor production within the country and the latest fabs in Arizona that will produce chips on Intel 18A process technology, which is the most advanced production node available in the U.S. Intel also noted it remains the only American firm still investing in leading-edge process development.

In his own message to Intel staff, Tan emphasized his 40+ years connection to the U.S., his gratitude for opportunities in the country, and his commitment to guiding the company through a critical period. He rejected claims of misconduct and described his career as built on trust and adherence to strict legal and ethical principles. Tan said concerns of the Senator and Trump stem from 'misinformation,' which is why Intel is engaging with the administration to clarify the facts, reiterated support for national and economic security, and highlighted progress toward high-volume production of 18A-based processors later this year. He also stressed that the Intel Board fully supports his work.

Industry insiders have suggested to DigiTimes a few possible reasons for the timing of Trump's concerns. Some believe Intel's advancement of its 14A and 18A process technologies may not align with the administration's vision for reshoring production. Others note that since Tan took over, job cuts have been deeper than anticipated, which include foundry divisions previously spared from reductions, which could run counter to Trump's stance on domestic employment. Discontented mid-to-senior executives could have conveyed these concerns to Cotton, prompting his outreach to Intel's board and Trump.

Interestingly, President Trump did not call Lip-Bu Tan's Intel leadership a concern for national security. Instead, he cited conflict of interests, which may point both at his financial interests as the chairman of Walden International and other investment entities, and to his backing of multiple Chinese tech firms, including some currently on the U.S. Commerce Department's Entity List for alleged links to China’s government, military, and intelligence services.

"The CEO of INTEL is highly CONFLICTED and must resign, immediately," Trump wrote. "There is no other solution to this problem. Thank you for your attention to this problem!"

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