Intel shares fell on Thursday after US President, Donald Trump called for the company’s CEO, Lip-Bu Tan, to resign.
Posting on Truth Social, Trump said: “Lip-Bu Tan is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”
Following the post, Intel’s stock dropped in premarket trading, last down by 5%.
Intel has not yet responded to requests for comment.
Tan became CEO in March, replacing Pat Gelsinger, as the company looked to recover from a period of falling sales.
Earlier this week, Senator Tom Cotton (R-Ark.) raised concerns about Tan’s business connections in China. Referring to a past case involving Cadence Design, where Tan was CEO until 2021, Cotton questioned whether these ties could affect U.S. security interests, according to Reuters.
In a letter to Intel’s chair, Cotton wrote: “Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations. Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”
According to Reuters, Tan has invested in several Chinese companies, some with links to the country’s military, either directly or through venture funds.
Intel exceeded expectations in its second-quarter earnings report in July but also revealed plans to reduce spending.
In an internal memo, Tan detailed cuts to the company’s foundry division, which manufactures chips for other firms and reported a loss of $3.17 billion.
As part of the restructuring, Intel cancelled chip fabrication projects in Germany and Poland and merged some testing and assembly operations in Vietnam and Malaysia. Tan also said construction of a factory in Ohio would be delayed.
