Intel CEO calls China ties allegations "misinformation" after Trump demands resignation

[Daniel Sims]

A hot potato: Intel CEO Lip-Bu Tan has described recent suspicion about his past dealings with China as "misinformation," as the company works to resolve the matter with the Trump administration. The US government is targeting the chipmaker's boss during a prolonged crisis for the company, which is struggling to salvage its manufacturing business.

In a letter to Intel staff, Tan confirmed that the company is meeting with the Trump administration to address allegations about his ties to China. He also reaffirmed his commitment to strengthening the US position in the semiconductor industry.

The controversy began when, citing national security concerns, US Republican Senator Tom Cotton questioned Intel's board of directors about Tan's large investments in Chinese chip companies and Cadence's violation of US export laws concerning China during his time as Cadence CEO.

Cadence Design Systems recently pleaded guilty to knowingly exporting restricted electronic design automation tools and semiconductor intellectual property to China's National University of Defense Technology between 2015 and 2021. Tan led the company from 2008 to 2021 and served as executive chairman until May 2023.

Through his venture capital firm, Walden, Tan has also invested more than $200 million in advanced Chinese chipmakers. According to Reuters, none of these companies is on the US list of banned entities linked to China's military-industrial complex. Nonetheless, President Trump has called for Tan's immediate resignation.

In his letter, Tan stated that over a career spanning four decades, he has adhered to the highest legal and ethical standards while building relationships worldwide. He also emphasized Intel's critical position as the only American company manufacturing advanced chips, as the company competes with rivals from Taiwan and South Korea.

Tan noted that he has lived in the United States for more than 40 years and is committed to the nation's security and economic strength. He was born in Malaysia and educated in Singapore and the US.

He took over Intel after the company forced Pat Gelsinger to resign following billions in losses. Intel's share price has fallen sharply in recent months, its credit rating has dropped to near junk status, and the future of its semiconductor manufacturing business is uncertain.

Although Tan has pledged to continue Gelsinger's investment in Intel's 18A and 14A process nodes, which are intended to compete with TSMC's 2-nanometer nodes, he may cancel one or both if they fail to attract clients.

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Intel CEO calls China ties allegations "misinformation" after Trump demands resignation

 

[RudyBob]

Nope. It's Truth Social

 

[SRB]

The more they publish about Intel, the less I know who's telling the truth. While I suspected the board wants to rid itself of manufacturing chips, and fired Pat because he wanted to not only continue, but grow the foundries, the question now becomes why did the board hire Tan? Did the board hire Tan knowing he wanted to keep making chips? Does Tan really want to keep the foundries running, by gutting staff, issuing ultimatums to the foundry about 18a and 14a? How is Tan going to make the foundries profitable if he cancels advance nodes?

The ultimate question is, "Does ANYONE at Intel have a plan that stands a chance of working? Foundry or no foundry??

 

[nnguy2]

Imagine any Democrat President demanding a CEO to resign. MAGA retards and fox would have an aneurysm.

 

[godrilla]

Imagine any Democrat President demanding a CEO to resign. MAGA retards and fox would have an aneurysm.

Hey now they have a scapegoat, blame Maga as usual because Intel needs a good scapegoat for it's victories oh wait. Maga steps up to the plate when one needs a good times scapegoat.

 

[candle86]

Imagine any Democrat President demanding a CEO to resign. MAGA retards and fox would have an aneurysm.

depends on if they have ties to China, any ties to China should invalidate you to work with any company that has DOD contracts period the end. This needs to be made a law, China is the enemy of mankind

 

[Megalomaniac]

Imagine any Democrat President demanding a CEO to resign. MAGA retards and fox would have an aneurysm.

Imagine if the Democrats had the cohones to actually push the limits of government instead of worrying about what MAGA and Fox had to say. If I was Obama or Biden, I'd have rolled right over them.

 

[Dr Roboto]

depends on if they have ties to China, any ties to China should invalidate you to work with any company that has DOD contracts period the end. This needs to be made a law, China is the enemy of mankind

Have you ever heard of this guy named Elon Musk? He ran DOGE for a while.

 

[AlexIL]

Hilarious douchebags in comments. Democratic hypocrites.

It isTan who fired thousands of people from Intel. It is Tan who literally crippled American capacity at chip design and production. It is Tan who by his actions in any sane state would be declared an enemy of the state.

Chinese asskissers democrats somuch fed up with your dumb****ery.

 

[godrilla]

Hilarious douchebags in comments. Democratic hypocrites.

It isTan who fired thousands of people from Intel. It is Tan who literally crippled American capacity at chip design and production. It is Tan who by his actions in any sane state would be declared an enemy of the state.

Chinese asskissers democrats somuch fed up with your dumb****ery.

But the status quo is is great for competition said no consumer ever. I've been saying Intel is being sabotaged for years and now we are here.
Trump literally just turned Intel silicon into quicksand illusion.

 

[nnguy2]

Hilarious douchebags in comments. Democratic hypocrites.

It isTan who fired thousands of people from Intel. It is Tan who literally crippled American capacity at chip design and production. It is Tan who by his actions in any sane state would be declared an enemy of the state.

Chinese asskissers democrats somuch fed up with your dumb****ery

Hilarious indeed! What a socialist thing to do! Telling private companies what to do!

 

[godrilla]

Hilarious indeed! What a socialist thing to do! Telling private companies what to do!

Wait I thought that was by force. Only socialists believe Potus doesn't have free speech makes sense.

 

[nnguy2]

Wait I thought that was by force. Only socialists believe Potus doesn't have free speech makes sense.

Setting reddit reminder for when the next Dem president tells private companies what to do and what your response is

 

[godrilla]

Setting reddit reminder for when the next Dem president tells private companies what to do and what your response is

The genie is out of the bottle no matter if Trump is yelling iceberg one ahead. Sure let's mark out calendars on a micro level.

 

[redgarl]

As much as I think Lip-Bu Tan is a bad CEO, no president in a democratic country should be able to destitute a CEO from a private company worth 100B$.

This is not Russia or the CCP.

 

[godrilla]

As much as I think Lip-Bu Tan is a bad CEO, no president in a democratic country should be able to destitute a CEO from a private company worth 100B$.

This is not Russia or the CCP.

So wait in Russia and or CCP if accused of being western Spy you stay live on to tell your side of the story. I guess Trump's words may seem equal here. Let's observe what comes next.

 

[Str8Shot]

One has to wonder why the US Government has the right to meddle in the affairs of a sovereign company. Oh right, because fascism: corporations working hand in glove with government.

 

[barca1au]

I have to wonder if the US Administration has a clue what its doing. Its got to the stage that if POTUS hates you, that is a compliment elsewhere! I don't know what the truth is, but a public shouting match only humiliates the shouter, not the person being shouted at.

 

[GeoffreyA]

It's good that Lip-Bu Tan stands up to Breen and the bullies at the Citadel. What he's doing may end up saving Intel, trimming it to essentials. Look at the number of AMD and Nvidia employees. Jim Keller said that one could not have much effect there because of the company's structure.

 

[emmzo]

That`s Trump negotiation tactics. You put the guy in a bad spot and come up with a better deal. The question is what does Trump want from Intel? I may have some ideas.

 

[Win7User]

China has a long history of stealing tech, as well as spying here in the US. So, Trump is right to question this guy. If, it were me, there would simply be NO Chinese in Universities, or employed in sensitive tech areas. They, can mop floors, or wait tables. Basically, there would be few Chinese people coming to the US at all, if I had my way.

 

[alexnode]

When an employee of your company invests 200million you have a problem. Intel should cut its leadership by 95 per cent, keep engineers and make a new foundry . Tsmc is not the way to go. Tsmc will direct prices for everything. We cannot have a monopoly.

 

[demonicmaniac]

Very aside but I wonder of techspot has ever considered limiting or disabling comments for certain articles when it just becomes a shouting match and open hate. I do want techspot to keep reporting and not potentially run into issues based on hate speech and incitement to do very stupid things.

 

[godrilla]

Very aside but I wonder of techspot has ever considered limiting or disabling comments for certain articles when it just becomes a shouting match and open hate. I do want techspot to keep reporting and not potentially run into issues based on hate speech and incitement to do very stupid things.

You mean like an echo chamber of one sided confirmation bias?

 

[Benses]

Very aside but I wonder of techspot has ever considered limiting or disabling comments for certain articles when it just becomes a shouting match and open hate. I do want techspot to keep reporting and not potentially run into issues based on hate speech and incitement to do very stupid things.

Do you know that no one is forcing you to read the comments?