Intel’s CEO Lip-Bu Tan is facing intense scrutiny after former President Donald Trump demanded his immediate resignation, accusing him of being “highly conflicted.” The controversy centers around Tan’s previous business ties with China, including investments in semiconductor companies and longstanding connections to Cadence Design Systems, where products were sold to a Chinese military university. These concerns have been amplified by Senator Tom Cotton, who recently called on Intel’s board to clarify Tan’s past engagements with entities linked to China’s defense sector.

While Trump’s ultimatum stirred headlines and spooked investors—triggering a drop in Intel’s stock price—he has yet to provide evidence backing his claims about Tan’s conflicts of interest. Instead, the allegations stem from Cotton’s letter, which highlights specific investments and export control violations involving Cadence under Tan’s leadership.

In response, Intel has issued a strong statement affirming its commitment to U.S. national security and the integrity of its defense partnerships. The company maintains that both Intel and Tan are dedicated to serving the best interests of the United States and have pledged to address lawmakers’ concerns directly. Tan himself has dismissed the accusations as “misinformation,” emphasizing an ongoing dialogue with the U.S. government and reaffirming his intention to remain at the helm.

This episode underscores growing tensions in the U.S. semiconductor industry, especially as the country seeks to reduce reliance on foreign supply chains and bolster domestic chip manufacturing. For now, the situation remains fluid, with Intel navigating political scrutiny while keeping its strategic focus on innovation and national interests. Investors and industry watchers will be closely tracking the outcome as Washington’s spotlight continues to shine on tech leadership.