Less than a week after calling for his resignation, President Donald Trump is now praising Intel’s chief executive, Lip-Bu Tan, as having an “amazing story” behind his career. The reversal comes as Intel’s shares recover from a dip triggered by the earlier criticism.
The shift followed a letter from Sen. Tom Cotton to Intel Chairman Frank Yeary, raising questions about Tan’s ties to certain semiconductor firms that Cotton said are linked to the Chinese Communist Party and the People’s Liberation Army. Cotton asked whether Tan had divested from those companies to eliminate any potential conflicts of interest.
Trump had, until recently, accused Tan of being “highly CONFLICTED” and said he should resign immediately, but after meeting with Tan at the White House, the president appeared to soften his stance. In a Truth Social post after the Monday discussions with Tan, along with Secretary of Commerce Howard Lutnick and Secretary of the Treasury Scott Bessent, Trump described the meeting as “very interesting” and said Tan’s success is an amazing story. He suggested that Tan and members of his cabinet would continue to engage on the issue over the coming week.
Intel’s stock moved higher after the development, gaining about 3.5% on Tuesday as investors weighed the evolving narrative around leadership, governance, and potential divestitures.
This episode sits within a broader U.S.-China dynamic in technology policy, where competition over chip supply, AI, and related technologies is shaping strategic and economic calculations on both sides of the Pacific. Investors and policy watchers will be watching for any concrete steps from Tan about divestment, governance changes, or disclosures that could clarify long-term alignment with U.S. regulatory expectations and Intel’s strategic priorities.
Commentary and context:
– The situation underscores how corporate leadership and governance intersect with national security considerations in the tech sector. Clear, timely disclosures about holdings and potential conflicts can influence investor confidence and corporate diplomacy.
– Intel’s next moves—whether through divestment, enhanced disclosures, or new governance practices—could affect its competitiveness in AI and advanced manufacturing amid a shifting global supply chain.
– For employees and partners, the episode may prompt increased focus on ethics and compliance programs, and on how leadership communicates with the market during investigation or scrutiny.
Summary:
The Trump administration’s evolving stance toward Lip-Bu Tan follows scrutiny over possible conflicts of interest tied to Tan’s investments, as a Cotton letter intensified concerns about ties to CCP-linked entities. A White House meeting led to a softened public tone from Trump, and Intel stock responded positively to the latest developments. As the U.S.-China tech rivalry continues to shape chip policy and corporate governance, Intel will be watched for concrete steps on divestment, transparency, and governance that could influence long-term strategy and investor confidence.