Political Pressure on Intel from President Trump

Chipmaker Intel is now under political pressure, with President Trump leading the charge.

On Thursday, Trump demanded the immediate resignation of Intel CEO Lip Bu Tang.

“Intel CEOs are very conflicted and must resign immediately. There is no other solution to this issue. Thank you for paying attention to this issue!”

While Trump didn’t specify the nature of this conflict, his comments followed a letter from Arkansas Republican Senator Tom Cotton to Intel’s board. Cotton referenced a report indicating Intel has invested in over 600 Chinese companies, some linked to the military.

Trump’s call for a resignation adds to the various challenges Intel is currently facing.

Once the leading US chipmaker, the 57-year-old company is now struggling to keep pace in an escalating race in artificial intelligence. The Santa Clara-based firm has been recording losses and its stock prices have been dropping, especially as rivals like Nvidia and Advanced Micro Devices gain ground.

As of Thursday morning, Intel’s stock had declined by 2%, settling at $19.92. The company has not yet responded to requests for comments.

At an event on Wednesday, Trump mentioned that Apple was making a massive $100 billion investment in the US but intends to impose tariffs on semiconductors without charging companies that manufacture them domestically.

While he commended companies like Apple and Nvidia, Trump was critical of Intel.

“Intel was taken over coal. They were frankly taken to cleaners and moved especially elsewhere in Taiwan,” he remarked during the event.

Intel, recognized for building powerful computers, has now largely transitioned to a Taiwanese semiconductor manufacturer, producing chips for firms like Apple and Nvidia. They’ve also heavily invested in the foundry business. Under the Biden administration, the US Department of Commerce allocated about $8 billion to Intel for US manufacturing and advanced packaging projects.