Intelligence Chief's narrative praised by Trump
In the realm of AI chip systems, Nvidia currently holds a significant lead over Intel, a position that has become more apparent in recent years. This shift in the market, however, is not the only issue Intel is grappling with. The company's CEO, Lip-Bu Tan, has found himself at the centre of a series of controversies, primarily revolving around his past investments and ties to Chinese companies with alleged military links.
Senator Tom Cotton and President Donald Trump have been among the most vocal critics, calling for Tan's resignation. Cotton accused Tan of controlling dozens of Chinese companies and having stakes in hundreds, including at least eight with ties to the Chinese People’s Liberation Army. Trump echoed this criticism via social media.
In response, Tan publicly refuted the misinformation about his investments and emphasized his 40+ years of experience in the industry. He asserted that he has always operated legally and ethically, reaffirming his commitment to U.S. national security. Intel, too, has stated that it is cooperating with the Trump administration to clarify facts. The company's board has also expressed their support for Tan amid these allegations.
These controversies centre around conflicting views about Tan’s business ties with China and their implications for U.S. national security. While Intel and Tan maintain transparency and commitment to legal compliance and U.S. interests, critics call for his removal due to these perceived risks.
The controversy comes at a time when Intel is facing significant challenges. The company has been struggling with losses approaching $19 billion in 2024, and its position in the AI chip market has weakened, leading to a change in leadership in early 2025 with Tan's appointment in March. Intel is also preparing to ramp up U.S.-based advanced semiconductor manufacturing later this year, underscoring its role in national technology strategy.
Meanwhile, the loss of the race to supply chips for smartphones marked a turning point for Intel. More power-efficient processors with Arm architectures from competitors like Qualcomm and TSMC prevailed over Intel's PC chips in mobile devices. Tan has since slashed costs at the struggling Intel corporation in an effort to turn the company around.
Despite the controversies, Tan has expressed a desire to work closely with Trump and his administration. He is scheduled to spend time with government officials and present proposals next week. However, Trump has not specified the details of these proposals.
In the past, under Tan's leadership, Cadence Design Systems transferred technology to a Chinese company, a fact that has been raised on platforms like Hacker News. Additionally, Republican Senator Tom Cotton has accused Tan of illegally selling products to a military university in China.
As the situation continues to unfold, it remains to be seen how these controversies will impact Intel and Tan's future in the industry. Trump, however, has expressed his support for Tan, calling the success and rise of Intel CEO Lip-Bu Tan a "great story." Senator Cotton, on the other hand, has demanded a response from Intel's board of directors by mid-August.
