President Trump early Thursday known as for the resignation of Intel (INTC) CEO Lip-Bu Tan in a publish on social media.
“The CEO of INTEL is very CONFLICTED and should resign, instantly,” Trump wrote on Reality Social, the social media platform he owns. “There isn’t any different resolution to this downside. Thanks on your consideration to this downside!”
Tan was named Intel’s CEO again in March, taking up from Pat Gelsinger’s tumultuous tenure that noticed the corporate’s inventory plummet and the chipmaker fall behind within the AI race. Traders cheered Tan’s appointment, with the inventory rising as a lot as 15% after the information, and Wall Avenue analysts in addition to present and former executives and workers noticed Tan as the most effective chance to reach turning across the troubled firm.
Intel inventory fell over 3% following Trump’s publish.
In April, a Reuters report detailed Tan’s wide-ranging investments in Chinese language firms made by means of his VC agency, Walden Worldwide. The outlet discovered that the agency “stays invested in 20 funds and firms alongside Chinese language authorities funds or state-owned enterprises, in line with Chinese language company databases.”
Tan has served on boards and in varied government roles at 14 corporations within the semiconductor house, most notably together with his tenure as CEO of Cadence Design Programs, a chip design software program firm.
Trump’s publish got here a day after one in every of his prime Senate allies, Republican Tom Cotton, wrote a letter to Intel’s board chair questioning Tan’s China ties.
“Intel is required to be a accountable steward of American taxpayer {dollars} and to adjust to relevant safety rules,” Cotton wrote, pointing to Intel’s almost $8 billion grant from the CHIPS Act. “Mr. Tan’s associations elevate questions on Intel’s means to satisfy these obligations.”
Intel didn’t instantly reply to Yahoo Finance’s request for remark.
Shares of Intel are up simply 1.8% for the yr, lagging different chip shares reminiscent of AMD (AMD), Broadcom (AVGO), and market chief Nvidia (NVDA).
In late July, Intel shares sank after the corporate reported that it might reduce its workforce by 15% in an try and pare prices because it struggles to revive its ailing chip manufacturing enterprise.
Intel each designs and manufactures chips for itself and has, in recent times, tried to provide chips for third-party prospects to spice up its manufacturing enterprise. Up to now, efforts have fallen quick. The corporate stated in its newest earnings report that it is scrapping an try and make its newest manufacturing course of know-how, known as 18A, out there to its prospects, one thing analysts had been calling essential to its turnaround efforts and talent to catch as much as rival chip producer TSMC (TSM).
