Intel CEO responds to 'misinformation' and Trump threat in letter to employees

Intel CEO Lip-Bu Tan addressed "misinformation" astir his erstwhile roles aft President Donald Trump called for his resignation and raised ethical concerns.

" I privation to beryllium perfectly clear: Over 40+ years successful the industry, I've built relationships astir the satellite and crossed our divers ecosystem – and I person ever operated wrong the highest ineligible and ethical standards," helium wrote successful a memo to employees connected Thursday.

Tan said that Intel is moving with the White House to code the concern and that helium supports the president's dedication to "advancing U.S. nationalist and economical security." He said Intel's committee is "fully supportive" of the company's translation plan.

Tensions deed a boiling constituent Thursday erstwhile Trump told Tan to measurement down arsenic CEO "immediately" successful a station connected Truth Social and called him "highly CONFLICTED." Intel shares fell 3% for the day.

Trump's request coincided with questions from Sen. Tom Cotton, R-Ark., implicit the CEO's transportation to Chinese companies and the imaginable ramifications for U.S. security.

"Intel is required to beryllium a liable steward of American payer dollars and to comply with applicable information regulations," Cotton wrote. "Mr. Tan's associations rise questions astir Intel's quality to fulfill these obligations."

In his letter, Cotton besides highlighted a transgression lawsuit astatine Cadence Design Systems involving illegally shipping products to China and asked whether Intel made Tan liquidate investments successful chipmakers tied to the Chinese Communist Party. Tan worked astatine Cadence for much than a decennary and served arsenic CEO.

Tan was appointed CEO of Intel successful March, succeeding Pat Gelsinger, who was ousted by the committee successful December aft struggling to turnaround the embattled chipmaker.

Bernstein expert Stacy Rasgon said successful a enactment Thursday that the steadfast does not judge that Tan is "conflicted," but his connections to China picture an "increasingly atrocious look" considering who is presently successful the White House.

"Unfortunately, dissimilar different tech CEOs Lip-Bu does not look to person cultivated the benignant of idiosyncratic narration with Trump that would assistance to assuage his ire," Rasgon wrote. Trump whitethorn besides beryllium disappointed by caller decisions astatine the company, which included axing immoderate foundry projects.