Shares of Intel Corporation (INTC), one of the world’s leading computer component manufacturers, fell 5.1% in pre-market trading on the NASDAQ, hitting a low of $19.37 per share as of 14:49 Moscow time.
The decline followed a public call by US President Donald Trump for Intel’s CEO Lip-Bu Tan to step down, citing a conflict of interest. Tan was appointed CEO in March 2025.
“The CEO of Intel is in a deep conflict and must resign immediately. There is no other solution to this problem. Thank you for your attention to this issue,” Trump wrote on social media.
The call came amid rising concerns over Tan’s ties to Chinese companies. Republican Senator Tom Cotton recently asked Intel’s board chairman to clarify Tan’s connections with China, including his investments in semiconductor firms and other companies linked to China’s military.
In a letter, Cotton questioned investments Tan made in China prior to his Intel appointment. He specifically cited Tan’s long leadership at Cadence Design Systems, a tech firm that sold products to the Chinese military university. In July, Cadence pleaded guilty to violating US export controls by selling hardware and software to China’s National University of Defense Technology.
According to Reuters, Tan served as CEO of Cadence from 2008 to 2021 and as executive chairman until May 2023.
Intel stated it will address the concerns raised. “Intel and Mr. Tan are deeply committed to ensuring US national security and maintaining our role in the US defense ecosystem,” the company said.
Between March 2012 and December 2024, Tan invested at least $200 million in hundreds of Chinese chipmaking and design companies, including at least eight linked to the People’s Liberation Army, according to Reuters. A source familiar with the matter said Tan has sold his stakes in those firms but gave no further details.
Intel, alongside Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics, is one of only three companies worldwide producing the most advanced computer chips and the sole such company headquartered in the US.
Financial Results and Restructuring
In the second quarter of 2025, Intel reported a net loss of $2.92 billion, compared to a loss of $1.61 billion in the same period last year. Quarterly revenue was $12.86 billion versus $12.83 billion a year earlier.
The company also announced plans to reduce its workforce to 75,000 employees by the end of 2025, a 22% reduction from the end of 2024. Intel representatives said the cuts will be achieved through layoffs and “other measures.”
