Shares of Intel took a hit after former President Donald Trump called for the resignation of CEO Lip-Bu Tan. Trump expressed his concerns in a post on Truth Social, labeling Tan as “highly CONFLICTED.” He stated that a change in leadership was necessary.
This call for resignation came after Senator Tom Cotton wrote a letter to Intel’s board. He raised alarms about Tan’s ties to companies linked to the Chinese Communist Party and the People’s Liberation Army. Cotton focused on Tan’s previous role at Cadence Design Systems, which admitted to selling technology to a Chinese military-linked university, violating U.S. export controls.
Cotton emphasized that U.S. firms benefiting from government grants should adhere to strict security measures. Intel, which has received over $8 billion from the federal government through the CHIPS Act, has a vested interest in national security.
The competition over semiconductor technology is becoming more intense between the U.S. and China. Experts warn that advancements in chips and artificial intelligence will shape future economies and military actions. Senator Cotton, who leads the Senate Intelligence Committee, has voiced worries that Chinese spies might infiltrate U.S. tech companies to access sensitive information.
On the same day, Cotton urged the Department of Defense to restrict non-U.S. citizens from jobs that allow access to military networks. He is pushing for an investigation into employment practices at defense contractors, noting that China’s cyber capabilities pose a significant threat to U.S. security.
Intel’s shares fell by 3.5%, while the broader tech market showed gains. Founded in 1968, Intel missed major trends like the shift to mobile computing and is now struggling to compete with more agile chipmakers like Nvidia, especially in the booming AI market.
Under Tan’s leadership since March, Intel plans to cut jobs and reduce costs, trying to improve its market position. This struggle highlights the ongoing challenges the company faces in a competitive landscape defined by rapid technological advancements.
In recent years, Intel has also faced criticism around its supply chain and manufacturing capabilities, as microchip shortages have affected various industries. The U.S. is pushing for more domestic chip production to secure its technological future, making the stakes for companies like Intel higher than ever.
For a deeper understanding of the U.S.-China tech rivalry and its implications, the Center for Strategic and International Studies offers valuable insights on the topic.
If you’re curious about this evolving situation, following expert opinions and market trends is essential.
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