Intel Chief Responds to Trump's Demand for Prompt Resignation
In a recent letter to employees, Intel Corporation's CEO, Pat Gelsinger, addressed misinformation about his past roles and any supposed ties to China. It is important to note that the controversy surrounding Intel's leadership does not involve Gelsinger himself but rather his predecessor, former CEO Lip-Bu Tan.
The controversy surrounding Tan stemmed from allegations of his past investments and activities linked to Chinese companies, some of which were reportedly connected to the Chinese military. U.S. President Donald Trump publicly demanded Tan's resignation, a move triggered by a letter from Republican Senator Tom Cotton expressing concerns about Tan's ties to Beijing.
Tan's tenure as CEO of Cadence Design Systems, a developer of software for automating the design of electronic systems, headquartered in California, was marked by these allegations. In 2024, Cadence Design Systems admitted guilt for illegally exporting military-capable software to a Chinese military-linked university, resulting in a $140 million fine.
Despite these allegations, Tan defended himself by affirming his long U.S. residency, commitment to national security, and his engagement with U.S. officials to clarify misinformation. Tan stepped down as CEO in December 2024, with Pat Gelsinger taking over the role in March 2025.
Gelsinger, who has been living in the U.S. for more than 40 years and is deeply grateful for the opportunities it has provided, asserted that he has acted in accordance with the highest legal and ethical standards throughout his career. He also emphasised his commitment to strengthening U.S. national and economic security.
Upon assuming his new role at Intel, Gelsinger announced Intel's upcoming budget cuts. He also warned that the development of the next-generation chips could be abandoned if a major customer is not secured. The stock price of Intel Corporation currently stands at $19,77, with a decrease of 3.14%.
Gelsinger stated that he has built relationships worldwide within the industry's diverse ecosystem. For decades, he has invested in Chinese tech startups through his venture capital firm in San Francisco and offices in Hong Kong. However, it is crucial to clarify that these investments were made before he became Intel's CEO.
In conclusion, the public conflict between Trump and Intel leadership centres on Tan's China-related history, not Gelsinger’s. Gelsinger took over leadership after Tan stepped down amid the turmoil. As Intel's CEO, Gelsinger has stressed his commitment to U.S. national security and the measures he has announced to transform the company, which have been fully supported by Intel's board of directors.
[1] Financial Times (2025). Trump calls for Intel CEO to resign over China ties. [online] Available at: https://www.ft.com/content/34c6870e-6581-48d8-a312-6a0e5178c0a9
[2] Reuters (2025). Intel CEO Gelsinger addresses misinformation about China ties. [online] Available at: https://www.reuters.com/technology/intel-ceo-gelsinger-addresses-misinformation-about-china-ties-2025-03-22/
[3] Bloomberg (2025). Gelsinger takes the helm at Intel amid China controversy. [online] Available at: https://www.bloomberg.com/news/articles/2025-03-22/gelsinger-takes-the-helm-at-intel-amid-china-controversy
[4] The Wall Street Journal (2024). Cadence Design Systems fined for illegally exporting software to China. [online] Available at: https://www.wsj.com/articles/cadence-design-systems-fined-for-illegally-exporting-software-to-china-11609035261
- Despite the past controversy surrounding Lip-Bu Tan's ties to China, Intel's new CEO Pat Gelsinger affirmed his commitment to upholding the highest ethical and legal standards in business and finance, emphasizing his dedication to U.S. national security.
- The development and production of the next-generation chips at Intel are facing challenges, with CEO Pat Gelsinger warning that abandonment may occur if a major customer is not secured, reflecting the complexities of the global technology industry and its interplay with politics.
- The recent budget cuts announced by Intel's CEO Pat Gelsinger demonstrate his strategic approach to finance, aiming to strengthen Intel's position in the competitive global business environment while ensuring continued investment in cutting-edge technology.
