# Intel's Stock Tumbles After Trump Says Its CEO Must Resign

In a shocking turn of events, shares of Intel Corporation plummeted on Thursday after President Donald Trump made a social media post calling for the company's CEO, Lip-Bu Tan, to resign immediately.

The post, made on Truth Social, accused Tan of being "highly conflicted" and in need of immediate departure due to his ties to semiconductor firms with connections to the Chinese Communist Party and the People's Liberation Army. The claims were sparked by a letter sent by Sen. Tom Cotton, who expressed concerns over Tan's investments and leadership roles at companies linked to the Chinese government.

Cotton's letter, which was addressed to Intel Chairman Frank Yeary, specifically highlighted Tan's involvement with Cadence Design Systems, a company that had previously pleaded guilty to violating export controls rules related to its sale of hardware and software to China. The U.S. Department of Justice fined Cadence $95 million for the breaches, while the Bureau of Industry and Security also imposed a fine.

Tan has been accused of having deep ties to the Chinese government, including investing in companies such as Taiwan Semiconductor Manufacturing Company and SMIC, which seeks to advance China's chipmaking capabilities. This has raised concerns among experts about the potential national security risks posed by Intel's CEO.

The demands made by Trump and Cotton come as economic and political rivalries between the U.S. and China increasingly focus on the competition over chips, AI, and other digital technologies that are expected to shape future economies and military conflicts.

In a statement, Sen. Tom Cotton wrote: "U.S. companies who receive government grants should be responsible stewards of taxpayer dollars and adhere to strict security regulations." He also called for an investigation into Chinese citizens working for defense contractors, citing concerns about the risks posed by China's cyber capabilities.

Intel did not immediately respond to a request for comment on the allegations against Tan, but it is now clear that his leadership has raised significant concerns among lawmakers and industry experts.

The stock market reaction was swift, with Intel's shares sliding 3.5% in response to Trump's tweet. The tech-heavy Nasdaq index also saw gains, as investors began to weigh the potential implications of the allegations against Tan and the company's ties to China.

Intel has been struggling in recent years, lagging behind more nimble chipmakers in the face of technological shifts triggered by the iPhone release in 2007. The company is currently shedding thousands of workers and cutting expenses, including domestic semiconductor manufacturing capabilities, as part of efforts led by CEO Tan.

As the situation unfolds, one thing is clear: Intel's stock tumble has sent shockwaves through the tech industry, raising questions about the potential risks posed by the company's leadership and its ties to China.

### What's at Stake?

* The future of Intel Corporation and its CEO, Lip-Bu Tan * The implications for the U.S. economy and national security in the face of rising tensions with China * The impact on investors and shareholders as Intel struggles to regain momentum

Stay tuned for further updates as this story continues to unfold.

### Related Stories:

* "China's Rise: What You Need to Know About the Country's Growing Influence" * "The Chip War: How the U.S. and China Are Battling for Dominance in the Global Semiconductor Market"

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