Who is Lip-Bu Tan? Top Tech CEO Faces White House Showdown After Trump Calls for His Removal
Intel CEO Lip-Bu Tan plans to visit the White House on Monday, just days after President Donald Trump publicly asked him to resign. The meeting was earlier on Sunday, as reported earlier by the Wall Street Journal, based on what it said were accounts from people familiar with the matter. Reuters was unable to confirm the report, and both Intel itself and the White House declined to offer comment.
According to the WSJ, Tan will also likely detail his professional experience and outline ways Intel could work closely with the U.S. government. He is banking on proving his loyalty to the country as a whole and emphasizing that Intel’s manufacturing strength is critical to national security.
Trump’s call for Tan to step down last week marked an unusual presidential intervention in corporate leadership. Tan was “profoundly conflicted” to the tune of hundreds of investments in Chinese manufacturing and chip companies, many with alleged ties to China’s military. Reuters had earlier reported that Tan invested more than $200 million in such firms.
Past Roles and Controversies
Tan is a Malaysian-born Chinese American. He has served in the semiconductor industry for many years. Before becoming Intel’s CEO six months ago, he led Cadence Design Systems from 2008 to 2021. During his tenure at Cadence, the company sold its products to a Chinese military university specializing in nuclear simulation and management. The company pleaded guilty to related U.S. charges in April and agreed to pay more than $140 million as part of a settlement announced last month.
The interest from Trump comes at a time when Tan is grappling with the task of turning around Intel’s struggling business. However, two investors and a former senior employee of the firm said the recent row could lead to him being distracted from planned cost cuts.
Ryuta Makino from Gabelli Funds told the Journal that Trump may pressure Intel to increase its capital spending in line with Apple and Nvidia, even though the company lacks the resources to do so.
Scaling Back Ambitions
The 2022 CHIPS Act was a boon for Intel under then-CEO Pat Gelsinger, who sought large U.S. chip factory initiatives. But Tan walked back those plans, saying that new plants would only be built when there is demand for them. That decision to slow factory building in Ohio raised more suspicion with Trump, who is a strong backer of expanding domestic manufacturing.
Intel followed up Trump’s comments with a statement reiterating its investment focus is in line with the “America First” policy, but it did not address the requests for Tan to resign. David Wagner, portfolio manager at Aptus Capital Advisors, slammed the statement as “bland” and said a protracted period of uncertainty could be damaging for the company.
Tan’s Defense
On Thursday, Tan reiterated his loyalty to the U.S., where he has resided for more than 40 years. This country is near and dear to me—I deeply respect the land of opportunity that welcomed my great-grandparents, grandparents, parents, and siblings with open arms. The board is behind my leadership in the direction we’re heading, and I love that company also,” he said.
Tan denied any impropriety, saying he had always acted within the law and the highest standards of ethics. Indeed, U.S. citizens are only prohibited from owning shares in Chinese firms on the Treasury’s Military-Industrial Complex List, and there is no evidence that Tan held any such stakes.
But Trump’s comments have shed light on his record. “While the scrutiny of Corporate America is welcome, it’s unfortunate that Intel is a target because it would appear to have slowed their focus on jettisoning unproductive parts and developing winning products,” said Brent Wilson, a former Intel executive. The implications of Tan’s possible departure are even grimmer, the source told us: “If Tan leaves, it will delay what Intel needs to do quickly.”
