AsianFin -- Intel Corporation on Thursday vowed to adhere to U.S. President Donald Trump’s “Amercian First” policies after Lip-Bu Tan, CEO of the 57-year old American chipmaker was under attack for his past ties to China.
Credit：Intel
“Intel, the Board of Directors, and Lip-Bu Tan are deeply committed to advancing U.S. national and economic security interests and are making significant investments aligned with the President's America First agenda,” the company said In a statement on Thursday.
Intel in the statement underlined its commitment of billions of dollars of investment in domestic semiconductor research and development (R&D) and manufacturing, citing its new fabrication plant in Arizona. The fab will run the most advanced manufacturing process technology in the country, said Intel. It also noted it is the only company investing in leading logic process node development in the U.S.
"We look forward to our continued engagement with the Administration," the statement concludes. The board and management team “regularly and actively engage in thorough discussions and deliberations,” Intel said an a separate statement to The Wall Street Journal.
Earlier Thursday, Trump called on Tan’s ouster, claiming the chief executive is “highly conflicted”. "The CEO of INTEL is highly CONFLICTED and must resign, immediately," Trump posted on his social media platform Truth Social. "There is no other solution to this problem. Thank you for your attention to this problem!"
Trump didn’t elaborate Tan’s conflict of interest, but he seemed to be referencing Tan’s investments and ties to semiconductor firms that are reportedly linked to the Chinese government, just as the concerns one of his top Senate allies, Republican Tom Cotton expressed in his letter earlier this week.
“Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms. At least eight of these companies reportedly have ties to the Chinese People’s Liberation Army,” Cotton wrote in the letter to Intel’s board chair.
Tan, a Malaysian-born Chinese American, from 2008 to 2021 served as CEO of Cadence Design Systems, a company that makes electronic design automation (EDA) technology, which is a key enabler of advanced chip design. Last week, Cadence pleaded guilty to illegally selling its products to a Chinese military university and transferring its technology to an associated Chinese semiconductor company without obtaining licenses. These illegal activities occurred under Mr. Tan’s tenure, Cotton pointed out.
Trump’s public demand for a CEO’s ouster is a rare move from a U.S. president, and raised new challenge the troubled Intel. Intel shares shed 3.1% following Trump’s calling for Tan’s immediate resignation.
"We don’t believe Lip-Bu is 'conflicted,' though given the nature of this administration the [Lip-Bu Tan's] China ties ... are seemingly creating an increasingly bad look," Bernstein analyst Stacy Rasgon wrote in a note following Trump’s post. "And 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."
