Intel shares fell 3.5% on Thursday after US President Donald Trump called on the company's CEO, Lip-Bu Tan, to resign immediately.
Trump alleged that Tan had significant interests in semiconductor and high-tech companies in China, including those linked to the People's Liberation Army (PLA).
The call followed revelations that Tan, who was appointed CEO in March, had invested through venture capital firm Walden International in hundreds of Chinese companies, eight of which were directly linked to the PLA.
The matter was raised by Senator Tom Cotton in a letter to Intel Chairman Frank Yeary, who questioned whether Tan had divested his investments to avoid conflicts of interest.
Tan previously led Cadence Design Systems between 2015 and 2021, when the company sold software and hardware to Chinese military universities.
Cadence recently pleaded guilty to export control violations and agreed to pay more than $140 million, in addition to being fined $95 million by the US Department of Commerce.
Intel, which received more than $8 billion in subsidies under the 2022 CHIPS Act, has stressed its commitment to national security and its “America First” agenda.
But Trump’s remarks have added pressure to the company, which is struggling to compete with chip giants such as Nvidia and TSMC.
Since missing out on the mobile chip market after the launch of the iPhone in 2007, Intel’s position has been deteriorating, especially in the era of artificial intelligence (AI) dominated by Nvidia.
To restore performance, Tan has laid off thousands of workers and reduced domestic production capacity, but the company has yet to show any solid signs of recovery.
