• Trump calls for immediate resignation of Intel CEO Lip-Bu Tan over ties to Chinese firms.
• Concerns raised by Senator Tom Cotton about Tan's investments linked to the Chinese military.
• Intel shares fell nearly 5% following Trump's demand, reflecting investor anxiety.
• Tan defends his record, claiming misinformation about his ties, and emphasizes commitment to U.S. economic security.
• Intel's internal challenges coincide with broader concerns about national security and company direction.

U.S. President Donald Trump has demanded the immediate resignation of Intel's CEO Lip-Bu Tan, calling him "highly conflicted" due to alleged ties to Chinese firms, particularly those connected to the People's Liberation Army. Trump's statement, made on his Truth Social platform, follows a letter from Republican Senator Tom Cotton, who raised national security concerns regarding Tan's investments. Cotton stated that Tan reportedly controls dozens of Chinese companies and holds stakes in hundreds of advanced manufacturing and chip firms, with at least eight linked to the Chinese military, raising alarms about Intel's obligations under U.S. security regulations, according to India Times and Reuters.

In response to the call for resignation, Tan issued a company-wide statement asserting that he has always operated "within the highest legal and ethical standards," dismissing claims of wrongdoing as "misinformation." He emphasized his commitment to America's national and economic security, expressing gratitude for the opportunities he has had in the United States over the past 40 years. Furthermore, Tan noted that Intel is actively engaging with the Trump administration to clarify concerns surrounding his past roles and investments, according to Business Insider and CBS News.

Trump's demand resulted in a nearly 5% drop in Intel's stock, exacerbating the company's existing challenges as it seeks to recover from declining market performance amid increasing competition from rivals like Nvidia and TSMC. Tan's previous leadership of Cadence Design Systems, which recently faced legal penalties for selling products to a Chinese military university, has added fuel to the fire regarding national security implications of his leadership at Intel, as highlighted by Senator Cotton's letter, according to Channel News Asia and The Jakarta Post.

As the situation unfolds, analysts note that this public pressure from the president not only distracts Tan from his critical turnaround strategy for Intel but may also impact investor confidence moving forward. While some argue that Tan's familiarity with the Chinese semiconductor landscape can be beneficial, the overarching national security concerns present a significant hurdle for both him and the company in the eyes of stakeholders, according to Reuters and India Times.