President Donald Trump is reportedly set to meet with Intel CEO Lip-Bu Tan at the White House on Monday, days after he demanded the executive’s resignation for his business ties to China.
The two may potentially discuss how the federal government and Intel can work together, the Wall Street Journal first reported. Tan is also expected to explain his personal and professional background in an attempt to allay the administration’s concerns, according to the report.
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Last week, Trump said on Truth Social that Tan was “highly CONFLICTED and must resign, immediately.” He added, “There is no other solution to this problem.”
Tan, who has led Intel since March, and the company he formerly led exhibit ties to China.
Cadence Design Systems recently agreed to plead guilty and pay more than $140 million in fines for selling its semiconductor chip designs to a Chinese military university. The development may have motivated Trump’s call for Tan’s resignation. Tan was the CEO of Cadence from 2009 to 2021.
Concerns about Tan’s relationship with Chinese companies and the Chinese Communist Party were raised in a letter written by Sen. Tom Cotton (R-AR), who demanded Intel’s board give “Congress an explanation.” Cotton is chairman of the Senate Select Committee on Intelligence, which focuses on China’s influence and activities as they relate to national security and technology.
Tan issued a statement in response to Trump’s demand, maintaining he has “always operated within the highest legal and ethical standards” during his time in the industry. The chief executive also revealed he had been in contact with the White House.
“We are engaging with the Administration to address the matters that have been raised and ensure they have the facts,” he said in a message to all Intel employees. “I fully share the President’s commitment to advancing U.S. national and economic security, I appreciate his leadership to advance these priorities, and I’m proud to lead a company that is so central to these goals.”
Monday’s reported meeting between Trump and Tan comes as Intel’s semiconductors are caught in the middle of the administration’s proposed 100% tariffs on imported semiconductors and computer chips.
Trump promised to exempt tech companies from the tariffs if they commit to investing in the United States. Apple is currently exempt from the planned tariffs, considering CEO Tim Cook announced his company’s $100 billion investment in domestic manufacturing during an appearance with Trump last week. Intel, the second-largest manufacturer of semiconductors in the U.S. by revenue, may also receive a tariff exemption if Tan pursues a similar investment.
NVIDIA AND AMD TO PAY 15% OF SALES TO CHINA TO US
The White House is working to boost the country’s semiconductor manufacturing capabilities, as the technology is an important factor in its race with China to develop and deploy artificial intelligence.
Trump clinched another victory on that front after chipmakers Nvidia and AMD agreed to pay the U.S. 15% of their revenue from the sales of AI chips in China as a condition to obtaining export licenses for the Chinese market. The move comes after Trump met with Nvidia CEO and President Jensen Huang last week.