Shares of Intel (NASDAQ: INTC ) fell 4% in premarket trading Thursday after U.S. President Donald Trump called on CEO Lip-Mo Tan to resign immediately.
Trump posted on his Truth Social platform: "The CEO of Intel has a serious conflict of interest and must resign immediately. There is no other solution to this problem. Thank you for your attention to this issue!"
The comments come amid growing scrutiny of Lip-Mou Tan's ties to China. Recently, Senator Tom Cotton, chairman of the Intelligence Committee, sent a letter to Intel Chairman Frank Yeary requesting information about Tan's investments in Chinese semiconductor companies and entities with ties to the Chinese military.
Cotton specifically raised concerns about Cadence Design Systems Inc. (NASDAQ: CDNS ), previously led by Chen Lip-bu, which pleaded guilty in July to violating U.S. export controls by selling hardware and software to China's National University of Defense Technology.
Cotton said in the letter that Chen's connections "raise questions about Intel's ability to fulfill its obligations as a 'responsible steward of American taxpayer funds' and to comply with security regulations."
Lip-Mo Chen took over as Intel CEO earlier this year as the chipmaker was working to revitalize its business to face intense competition and manufacturing challenges.