When Lip-Bu Tan took over as Intel’s CEO last March, the market reacted with a 13% stock bump, signaling renewed confidence in the company’s future. But today, after weeks of internal tensions, Intel’s situation has grown even more delicate, now drawing scrutiny from the White House.
Internal pressure at Intel has been mounting for months
After Tan was appointed as Pat Gelsinger’s successor as Intel CEO, many saw it as a positive move to reset the company’s strategy and leadership.
Tan, for his part, was quick to slash projects, jobs, products, and divisions, as he moved to get Intel to focus on what he saw as the company’s biggest opportunities to get back on track, make up for lost time, and regain the trust of both the stock market, and the company’s partners.
The problem is that the initial optimism quickly gave way to internal tension, especially amid growing uncertainty around tariffs, and as setbacks mounted across Intel’s roadmap, including ongoing yield issues with its next-generation 18A process.
Trump chimes in
Things came to a head today, after President Donald Trump publicly called for Tan’s resignation over what he described as the CEO’s “highly conflicted” ties to China.
Many have attributed that to the fact that before joining Intel, Tan used to lead Cadence Design, a firm which just pleaded guilty in an investigation by the Justice Department over charges of “selling its chip-design products to a Chinese military university,” per the Wall Street Journal’s description.
The settlement had already raised alarms in Washington, leading at least two Republican Senators to publicly question Tan’s suitability for the role and urge the board to consider new leadership. Trump’s remarks earlier today escalated things further.
Intel stands by Tan
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