On Thursday, shares of Intel dropped following President Donald Trump’s demand for the chief executive officer of the firm to resign. According to President Trump, the Chief Executive of Intel, Lip-Bu Tan, is highly conflicted and has to resign immediately. There is no other answer to this issue.
Intel later Thursday refuted charges by claiming the corporation, its directors, and Tan were deeply committed to furthering U.S. national and economic security interests. The sentence read, “We are the only company investing in top logic process node development in the U.S., continuing to put billions of dollars in home semiconductor R&D and manufacturing, including our new fab in Arizona running the most sophisticated production process technology in the nation.”
Tan assumed charge as Intel CEO in March as the company aimed to rebound from dropping sales under Pat Gelsinger’s direction. Raising questions about Tan’s links to Chinese companies this week, Senator Tom Cotton, R-Ark., cited a prior criminal case involving Cadence Design, where Tan worked as CEO until 2021.
To express concern about the security and integrity of Intel’s activities and its possible effects on U.S. national security, Cotton contacted the chair of Intel. Intel has to be a responsible custodian of American taxpayer money and follow relevant security rules. Mr. Tan’s links make one wonder if Intel can meet these responsibilities.
Cotton asked if the business had ordered Tan to sell from interests in chipmakers connected with the Chinese Communist Party, the People’s Liberation Army, and any other suspicious entities in China. Directly or via venture funds, Tan has invested in a number of Chinese firms, including some linked to the military, according to a Reuters report in April. Although Intel shares surpassed revenue projections with its second-quarter financial results in July, it also revealed a number of spending cuts.
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