Aug. 7 (UPI) — President Donald Trump called for Lip-Bu Tan, the chief executive officer of the Intel technology company to step down Thursday.
“The CEO of INTEL is highly CONFLICTED and must resign, immediately,” Trump posted to his Truth Social account. “There is no other solution to this problem.”
Although Trump hasn’t clearly explained the reason behind his declaration, Sen. Tom Cotton, R-Ark., did pen a letter Tuesday to Intel’s Chairperson Frank Yeary in regard to Intel Tan, who was appointed in March.
“I write to express concern about the security and integrity of Intel’s operations and its potential impact on U.S. national security,” Cotton wrote. “Mr. Tan reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms.”
Tan served as the CEO of Cadence Design Systems, a tech and software company, from 2009 to 2021, which was charged in July by the U.S. Department of Justice with conspiracy to commit export control violations. The charges are based on actions that occurred between February 2015 and April 2021.
Cadence has since pleaded guilty, and under a plea agreement will pay criminal penalties of around $118 million to resolve the charges, as well as more than $95 million in civil penalties.
Cotton noted in the letter that Tan was the CEO during the period of admitted criminal activity, and also that Intel was granted almost $8 billion under the CHIPS and Science Act, which funds the production of semiconductors.
“Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” Cotton further wrote. “Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”
Cotton then requested information regarding Intel’s knowledge of the investigation of Cadence and if Tan’s activities as Candence CEO were vetted, and if Tan was required to divest from any semiconductor firms with connections “to the Chinese Communist Party or the People’s Liberation Army and any other concerning entities in China that could pose a conflict of interest for Intel’s CEO.”
Intel stock opened down and continued to drop Thursday from an after-market high Wednesday of $20.99 to $19.70 at 10:55 a.m. EDT.