Trump demands a change in leadership at Intel - Tan's future is in jeopardy!

Trump demands a change in leadership at Intel - Tan's future is in jeopardy!

On August 12, 2025, Donald Trump calls for a change in leadership at chip manufacturer Intel. This came after a meeting with CEO Lip-Bu Tan, where Trump struck a conciliatory tone. According to the Süddeutsche Zeitung, Trump describes the meeting as “very interesting” and Tan’s career as a “great story.” Present were Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, who are expected to support Trump in developing proposals together with Tan.

Intel has reacted positively to its cooperation with Trump and his government on its website, which is also reflected in the development of its share prices. After Trump's praising remarks, Intel shares rose. However, Trump had previously called for Tan's immediate resignation. This came amid allegations regarding Tan's alleged problematic ties to Chinese companies, which Trump described as "highly contentious" in a social media post.

Background to Lip-Bu Tan

Tan, who was named Intel CEO in March, has set his sights on turning around the company and responding to challenges in the semiconductor industry. To do this, he initiated a savings program and abandoned plans for a chip factory in Magdeburg. However, when making decisions, he is confronted with concerns on the supervisory board that arose even before he became involved in the White House. Under his leadership, Intel has already carried out mass layoffs and closed unprofitable business areas.

In a recent update to investors, Tan said Intel would be scaling back its investment in manufacturing, particularly within the US. Despite these moves, analysts have expressed concerns that the conflict with Trump could pose additional challenges for Intel. Trump is known for publicly criticizing company executives, which has often led to negative reactions from tech companies in the past.

Political and economic implications

Senator Tom Cotton has raised questions about the security and integrity of Intel's business related to Tan's leadership. He pointed to Tan's previous role as CEO at Cadence Design Systems, which was fined $140 million for violating U.S. export controls. Despite his background as a US citizen with more than 40 years of experience in the semiconductor industry, Tan's future at Intel could remain uncertain, depending on the results of the actions he initiated and technological advances.

The situation is complicated by a 2024 congressional report and a Reuters investigation that shed light on Tan's investments in Chinese companies. Some of these companies have ties to the Chinese military. Despite concerns, Intel has stressed that the company and Tan are committed to U.S. national and economic security interests, but that comes under additional pressure from Trump's public statements and proposed tariffs on the chip industry.