^{Intel’s CEO Lip-Bu Tan speaks at the company’s Annual Manufacturing Technology Conference in San Jose, California, U.S. April 29, 2025. | Laure Andrillon | Reuters}

Trump’s Sudden Shift on Intel Leadership

President Donald Trump made headlines Monday with a surprising change of heart regarding Intel’s CEO Lip-Bu Tan. After publicly calling for Tan’s resignation last week, citing concerns about conflicts related to China, Trump met with Tan alongside key members of his cabinet. Following the meeting, Trump lauded Tan’s career trajectory as “an amazing story” and hinted at ongoing collaboration.

In a Truth Social post, Trump wrote,

“I met with Mr. Lip-Bu Tan, of Intel, along with Secretary of Commerce Howard Lutnick and Secretary of the Treasury Scott Bessent. The meeting was very interesting. Mr. Tan and my cabinet members will spend time together and bring suggestions to me over the next week. Thank you for your attention to this matter!”

Intel confirmed the meeting, describing it as “candid and constructive,” with a shared focus on strengthening U.S. leadership in technology and manufacturing.

Context: The Controversy Behind Trump’s Call for Resignation

Tan, 65, who assumed the Intel CEO role in March 2025 after replacing Pat Gelsinger, had come under fire amid political scrutiny. Senator Tom Cotton raised questions about Tan’s ties to China, referencing a previous criminal case connected to Cadence Design, where Tan served as CEO. Cotton pressed Intel to clarify whether Tan had severed connections with entities linked to the Chinese Communist Party and the People’s Liberation Army.

Trump’s initial demand for Tan’s “immediate” resignation, posted last Thursday on Truth Social, emphasized perceived conflicts of interest. Intel responded the same day, affirming that Tan and the company remain “deeply committed to advancing U.S. national and economic security interests.”

The Semiconductor Industry at a Crossroads

The semiconductor sector is under intense scrutiny amid U.S.–China tensions and the race for dominance in artificial intelligence hardware. Intel, historically a market leader, has struggled recently to keep pace with Nvidia, which continues to dominate the AI chip space.

Over the weekend, Nvidia CEO Jensen Huang visited the White House, negotiating a deal to pay a 15% cut of sales on certain chip exports to China—a reduction from the 20% initially requested by Trump. This deal allows Nvidia to resume sales of its H20 AI chip to Chinese entities under controlled conditions, illustrating the delicate balance in U.S. trade and technology policies.

Intel’s Ongoing Challenges and Tan’s Vision

Tan’s tenure has been marked by tough decisions, including layoffs and restructuring Intel’s foundry division. The company canceled manufacturing expansions in Germany and Poland and slowed down plans in Ohio, signaling a more cautious approach amid market pressures.

Born in Malaysia and raised in Singapore before earning his master’s from MIT, Tan openly acknowledged the challenges during a July earnings call:

“Turning the company around will take time and require patience. We have a lot to fix in order to move the company forward.”

Intel’s stock has climbed approximately 3% year-to-date, trailing the broader S&P 500’s 8.4% gain, underscoring market optimism tempered by caution.

What’s Next?

Trump’s pivot suggests a strategic recalibration as the administration seeks stability in critical tech sectors. The upcoming discussions between Tan and White House officials could shape Intel’s roadmap amid increasing global competition and national security concerns.

As Intel navigates its transformation, attention will remain on how effectively Tan can steer the company back to growth while addressing political sensitivities that impact U.S.–China relations in the semiconductor arena.

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