AsianFin -- Intel Corporation shares rose around 5.5% on Tuesday, logging their best day in six weeks as U.S. President Donald Trump softened tone on Lip-Bu Tan, CEO for the 57-year old American chipmaker.
Credit：Intel
Trump at Monday afternoon said he and his cabinet members met with Tan, and touted Tan’s success and rise as “an amazing story.” He also suggested his team would talk with Tan next week.
“I met with Mr. Lip-Bu Tan, of Intel, along with Secretary of Commerce, Howard Lutnick, and Secretary of the Treasury, Scott Bessent,” Trump posted on his Truth Social platform. “The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week.”
An Intel spokesperson confirmed the meeting, describing it involving “candid and constructive” discussions. “Earlier today, Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel’s commitment to strengthening U.S. technology and manufacturing leadership,” the spokesperson wrote in an email.
Trump’s comments, a remarkable U turn, appeared to defuse the president’s previous call for Intel CEO’s resignation and mitigate investors’ concerns over Tan’s efforts to revive the fortune of the struggling chipmaker.
Trump on August 7 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.
Intel later August 7 vowed to adhere to Trump’s “Amercian First” policies. “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. "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.
In his note sent to all Intel employees on August 7, Tan said there had been a lot of misinformation circulating about his past roles at Walden International and Cadence Design Systems. He made it 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.”
“My reputation has been built on trust – on doing what I say I’ll do, and doing it the right way. This is the same way I am leading Intel,” Tan continued. He said in the note that he fully shares the Trump’s commitment to advancing U.S. national and economic security,"and I’m proud to lead a company that is so central to these goals. "
