Trump scales back Intel pressure

Trump signals a shift after considering Intel CEO Lip-Bu Tan amid concerns over Chinese ties.

Trump backs down from Intel CEO pressure

President Trump said on Truth Social that he met with Lip-Bu Tan, Howard Lutnick, the Secretary of Commerce, and the Secretary of the Treasury. He described the meeting as "a very interesting one" and praised Tan as having an amazing story. He had previously argued that Tan was highly conflicted because of investments in hundreds of Chinese firms linked to the Chinese military, a claim Reuters reported had circulated. Trump added that Tan and his Cabinet members would spend time together over the next week to offer suggestions. Tan later wrote to Intel employees denying wrongdoing, saying he has always operated within the highest legal and ethical standards and that Intel is working with the White House to address the raised matters.

Tan became Intel CEO in March as the company faced losses in its core foundry business. He has pushed cost cutting, including plans to reduce the workforce by about 22 percent by year end. He also warned investors that Intel might drop development of its next generation manufacturing technology if it cannot win a large client.

The episode shows how tech leadership is increasingly a political flashpoint. The mix of a Senate letter, presidential commentary, and press reporting creates a pressure layer that can push governance decisions beyond business logic. Intel now faces scrutiny about ethics and security, even as it tries to complete a difficult turnaround. The case also highlights how public reporting on ties to China can influence investor sentiment and strategic choices.

For Intel, the test is clear: reassure stakeholders about governance and security while pressing ahead with a costly plan to regain competitiveness. If the company cannot demonstrate credibility, political scrutiny could become a longer-term overhead that weighs on growth and client development.

Highlights

The coming weeks will test how Intel balances ethics, security, and ambition.