Trump pressures Intel CEO to resign over investment in China
On Thursday, August 7, President Donald Trump made a statement calling for Intel's new CEO, Lip-Boo Tan, to immediately resign, stating that there was a "serious conflict of interest" from investing in several Chinese technology companies, some of which had links to the Chinese People's Liberation Army, resulting in an immediate 3 percent drop in Intel shares.
Trump's claim comes after Republican Senator Tom Cotton sent a letter to Intel's board chairman questioning Tan's ties to a Chinese company and a lawsuit involving his former company, Cadence Design, which recently admitted liability and agreed to pay over $140 million ($4.52 billion) in fines for selling software to Chinese military universities.
Back in April, Reuters reported that Tan had invested through funds he founded or managed, a total of more than $200 million ($6.46 billion) in hundreds of Chinese companies engaged in advanced manufacturing and semiconductor, some with links to the Chinese military, according to a database of Chinese companies that was reviewed in conjunction with a list of companies with military links provided by U.S. analysts and agencies.
In the wake of Trump's statement, Tan issued a statement in response, insisting that he adheres to the U.S. security and economic mission, promptly stating, "My reputation is built on trust - from following my word and doing the right thing. This is the same approach I adopted in the Intel administration," adding, "We are in discussions with the government to clarify the facts."
Intel, meanwhile, confirmed that the company is pursuing an "America First" approach and is ready to partner with the U.S. government to support continued domestic chip manufacturing.
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