Embattled Intel CEO Lip-Bu Tan pushed again on “misinformation” over his alleged monetary ties to China after President Trump known as on him to resign over a possible battle of curiosity.
“I need to be completely clear: Over 40+ years within the trade, I’ve constructed relationships around the globe and throughout our various ecosystem – and I’ve all the time operated throughout the highest authorized and moral requirements,” Tan wrote within the letter to Intel staffers on Thursday.
He went on to say that the corporate — which final yr was awarded $8.5 billion beneath the Biden administration’s CHIPS Act — is working with the Trump administration to deal with the problems being raised.
Tan has come beneath fireplace from each Trump and Sen. Tom Cotton, the chair of the Senate Intelligence Committee, over the Intel chief’s previous investments in Chinese language corporations with ties to the Beijing and the army.
In a submit on his Reality Social platform Thursday morning, Trump wrote that Tan is “extremely CONFLICTED and should resign, instantly.”
That missive got here a day after Cotton (R-Ark.) despatched a letter to Intel Chairman Frank Yeary demanding solutions about Tan’s monetary dealings as a result of he’s involved “concerning the safety and integrity of Intel’s operations and its potential influence on US nationwide safety.”
A Reuters report earlier this yr claimed Tan invested a minimum of $200 million throughout a whole lot of Chinese language corporations – some with hyperlinks to the army – between March 2012 and December 2024.
Cotton additionally raised issues over Tan’s tenure as CEO at Cadence Design, which final week agreed to pay greater than $140 million to settle costs that it bought chips to a Chinese language army establishment, based on Reuters.
In Tan’s memo Thursday, he mentioned that Intel’s board is “absolutely supportive.”
Nonetheless, the beleaguered boss has been emroiled an influence battle with Intel’s board since taking up as CEO in March, sources aware of the matter advised the Wall Avenue Journal.
The crux of the tensions revolves round whether or not Intel ought to proceed to fabricate its personal chips or exit the enterprise fully to chop down on prices, based on the report.
Whereas Tan has pushed to maintain Intel’s personal manufacturing in place, some board members, led by Yeary, are attempting to spin off or promote the money-losing unit, sources mentioned.
Yeary has even held talks with Nvidia and Amazon about shopping for items of the enterprise, and explored a possible sale to chipmaker TSMC, based on the Journal.
Tan, who was born in Malaysia and grew up in Singapore, changed ousted CEO Pat Gelsinger following dismal earnings and a number of other rounds of layoffs.
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