Trump proposes US take 10% stake in Intel amid CEO's China ties concerns
President Trump announced plans for the U.S. government to acquire a 10% stake in Intel, a move reportedly agreed to by the chipmaker. This follows Trump's call for Intel CEO Lip-Bu Tan's resignation due to his past business dealings with China. Tan, however, has rejected these calls, asserting his commitment to Intel and the U.S.
Key points
- President Trump stated the U.S. government intends to take a 10% stake in Intel.
- Trump had previously called for Intel CEO Lip-Bu Tan's resignation over alleged conflicts of interest related to China.
- Tan responded to employees, refuting 'misinformation' and affirming his loyalty to the U.S.
- Tan's past business activities, including investments in Chinese firms and leadership at a company that sold products to a Chinese military university, have drawn scrutiny.
- Intel's stock saw a temporary rise following the stake proposal news.
U.S. President Donald Trump has revealed plans for the federal government to acquire a 10% ownership stake in the semiconductor manufacturer Intel. Trump announced the proposal, stating that Intel has agreed to the arrangement. The news surfaced after a period of heightened scrutiny surrounding Intel CEO Lip-Bu Tan's past business connections with China.
Concerns regarding Tan's ties were amplified by reports detailing his investments in numerous Chinese technology companies, some allegedly linked to the People's Liberation Army. Additionally, Tan's prior role at Cadence Design Systems, which faced a Justice Department investigation for selling chip-design products to a Chinese military university, has come under renewed attention. These revelations led to calls from some political figures for Tan's resignation.
In response to the mounting pressure and Trump's public call for his departure, Tan issued a statement to Intel employees. He characterized the allegations as "misinformation" and reaffirmed his dedication to the company and the United States, where he has resided for over 40 years. While Intel has not officially commented on the stake proposal, the company's stock experienced an initial increase following the announcement.
Sources
The WireByte editorial team synthesises technology news from multiple primary sources, verifies the facts, and links every source. Articles are produced with AI assistance and reviewed under our editorial policy.