Intel CEO Lip-Bu Tan meets with Trump after president calls for his resignation

Intel CEO Lip-Bu Tan visited the White House on Monday for a meeting with President Trump after the president called on him to resign from his post over his purported ties to the Chinese Communist Party.

Mr. Trump in a social media post said he met with Mr. Tan along with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, and the meeting was “an interesting one.”

“His success and rise is an amazing story,” Mr. Trump said. “Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week.”

Mr. Trump’s tone toward Mr. Tan is a 180 from last week.

At that time, he had called on Mr. Tan to “resign immediately” after Senate Select Committee on Intelligence Chairman Tom Cotton called attention to Mr. Tan’s business relationship with the CCP and demanded that he reveal any of his connections to China’s Communist Party and its military.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,” Mr. Trump said on social media. “Thank you for your attention to this problem!”

The Wall Street Journal first reported that Mr. Tan would meet with Mr. Trump at the White House, and both were anticipated to discuss Mr. Tan’s commitment to U.S. national security and offer avenues the chipmaker could work with the Trump administration.

Mr. Tan and Mr. Trump reportedly were expected to have a wide-ranging conversation, which would include Mr. Tan explaining his personal and professional background.

An Intel spokesperson said in a statement to The Washington Times that “Mr. Tan had the honor of meeting with President Trump for a candid and constructive discussion on Intel’s commitment to strengthening U.S. technology and manufacturing leadership.”

“We appreciate the President’s strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company,” the spokesperson said.

Intel shares rose about 3.5% in trading Monday.

Mr. Cotton, Arkansas Republican, wrote in a letter to Intel Chairman Frank Yeary last week that he’s concerned “about the security and integrity of Intel’s operations and its potential impact on US national security.”

Intel appointed Mr. Tan its CEO in March to replace ousted Intel head Pat Gelsinger, one year after the struggling chip company was awarded $8 billion from President Biden’s CHIPS Act, the largest grant to a single company.

An Intel spokesperson said, “Intel, the Board of Directors, and Lip-Bu Tan are deeply committed to advancing U.S. national and economic security interests and are making significant investments aligned with the President’s America First agenda.”

“Intel has been manufacturing in America for 56 years,” the spokesperson said. “We are continuing to invest billions of dollars in domestic semiconductor R&D and manufacturing, including our new [lab] in Arizona that will run the most advanced manufacturing process technology in the country, and are the only company investing in leading logic process node development in the U.S.”

Mr. Tan reportedly “controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms,” Mr. Cotton said, adding that at least eight of those companies have reported ties to the Chinese People’s Liberation Army.

Mr. Tan had been the CEO of Cadence Design Systems, which makes electronic design automation technology, a key enabler of advanced chip design.

Cadence recently pleaded guilty to illegally selling its products to a Chinese military university and transferring its technology to an associated Chinese semiconductor company without obtaining licenses. The firm agreed to pay more than $140 million to settle the charges.

“These illegal activities occurred under Mr. Tan’s tenure,” Mr. Cotton said.

He asked Mr. Yeary whether the Intel board of directors knew about Cadence’s subpoenas before hiring Mr. Tan as CEO, and what steps were taken to address concerns about Cadence’s activities during Mr. Tan’s tenure.

Mr. Cotton also asked if the board mandated that Mr. Tan divest from his positions in semiconductor firms tied to the Chinese Communist Party or military and any other entities in China that could pose a conflict of interest.

Mr. Cotton also wants to know, given Intel’s contract under the Secure Enclave program, if Mr. Tan disclosed to the U.S. government any remaining investments, professional roles or other ties to Chinese companies.

Although it’s not illegal for Americans to hold stakes in Chinese companies, the U.S. Treasury maintains a list of prohibited Chinese firms.

According to a Reuters report, Mr. Tan wasn’t directly invested in any company on that list.