Intel shares drop after Trump calls for CEO to resign immediately

Intel shares slipped Thursday after President Donald Trump called for the chipmaker’s CEO to resign immediately.

In a Truth Social post, Trump said Intel Chief Executive Lip-Bu Tan “is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.”

Intel did not immediately respond to a request for comment.

Tan was named as Intel CEO in March as the chipmaker tried to rebound from declining sales under the stewardship of Pat Gelsinger.

This week, Sen. Tom Cotton, R-Ark., questioned Tan’s ties to Chinese companies and referenced a past criminal case involving Cadence Design, where Tan was CEO until 2021.

Cotton wrote to Intel’s chair to “express concern about the security and integrity of Intel’s operations and its potential impact on U.S. national security.”

“Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations,” Cotton wrote. “Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”

Cotton asked whether the company required Tan to divest of positions in chipmakers linked to the Chinese Communist Party, the People’s Liberation Army and any other concerning entities in China.

Tan has invested in a number of Chinese companies, including some linked to the country’s military, both directly or through venture funds, Reuters reported in April.

Intel beat earnings expectations when it reported financials for the second quarter in July, but announced several spending cuts.

In a memo, Tan announced cuts to the company’s costly foundry division, which makes chips for other companies and had an operating loss of $3.17 billion.

The company canceled planned fab projects in Germany and Poland, and consolidated testing and assembly operations in Vietnam and Malaysia. Tan also said Intel would slow construction of a chip factory in Ohio.

CNBC’s Kif Leswing contributed to this article.