Lip-Bu Tan, CEO of Intel, appears at an event organized by the company.
Andrej Sokolow | Picture Alliance | Getty Images
Intel CEO Lip-Bu Tan addressed “misinformation” about his previous roles after President Donald Trump called for his resignation and raised ethical concerns.
” I want to be absolutely clear: Over 40+ years in the industry, I’ve built relationships around the world and across our diverse ecosystem – and I have always operated within the highest legal and ethical standards,” he wrote in a memo to employees on Thursday.
Tan said that Intel is working with the White House to address the situation and that he supports the president’s dedication to “advancing U.S. national and economic security.” He said Intel’s board is “fully supportive” of the company’s transformation plan.
Tensions hit a boiling point Thursday when Trump told Tan to step down as CEO “immediately” in a post on Truth Social and called him “highly CONFLICTED.” Intel shares fell 3% for the day.
Trump’s demand coincided with questions from Sen. Tom Cotton, R-Ark., over the CEO’s connection to Chinese companies and the potential ramifications for U.S. security.
“Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” Cotton wrote. “Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”
In his letter, Cotton also highlighted a criminal case at Cadence Design Systems involving illegally shipping products to China and asked whether Intel made Tan liquidate investments in chipmakers tied to the Chinese Communist Party. Tan worked at Cadence for more than a decade and served as CEO.
Tan was appointed CEO of Intel in March, succeeding Pat Gelsinger, who was ousted by the board in December after struggling to turnaround the embattled chipmaker.
Bernstein analyst Stacy Rasgon said in a note Thursday that the firm does not believe that Tan is “conflicted,” but his connections to China depict an “increasingly bad look” considering who is currently in the White House.
“Unfortunately, unlike other tech CEOs Lip-Bu does not appear to have cultivated the kind of personal relationship with Trump that would help to assuage his ire,” Rasgon wrote. Trump may also be disappointed by recent decisions at the company, which included axing some foundry projects.