Intel's shares declined over 3% when President Trump demanded CEO Lip-Bu Tan resign, citing conflicts due to substantial investments in Chinese chip firms. Although Trump did not elaborate, concerns were previously raised by Sen. Tom Cotton regarding national security implications. Cotton requested Intel's chairman to address Tan's ties to Chinese companies and his history at Cadence Design Systems, where legal issues arose. He stressed Intel's responsibility to manage taxpayer funding and comply with security standards, questioning Tan's capacity to meet these requirements. Tan's investments were made through his venture firm, with no ties to banned Chinese entities known.
Shares of Intel dropped more than 3% after President Trump demanded CEO Lip-Bu Tan's resignation, claiming he is "highly conflicted" due to Chinese investments.
Trump's demand for Tan's resignation followed concerns raised by Sen. Tom Cotton regarding Tan's ties to Chinese firms and the implications for US national security.
Cotton's letter emphasized the need for Intel to comply with security regulations, questioning Tan's ability to fulfill obligations given his associations with Chinese companies.
Tan's past investments, which came under scrutiny after his appointment, were made through a venture capital firm, with no evidence linking him to banned Chinese military entities.
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