Intel’s CEO Meeting with President Trump Raises Concerns

Intel faced more challenges this week as its CEO met with US President Donald Trump. The meeting followed Trump’s call for the resignation of CEO Lip-Bu Tan, prompted by a letter from Senator Tom Cotton expressing concerns about Tan’s investments in semiconductor firms with ties to the Chinese Communist Party and the People’s Liberation Army.

In response, Trump took to Truth Social to demand Tan’s immediate resignation, citing conflict of interest issues. However, a subsequent meeting on August 11 between Intel and the US administration was described as “candid and constructive” by Intel.

Intel publicly stated its commitment to US national and economic security interests and alignment with Trump’s agenda. Despite this, former Intel chief Craig Barrett expressed doubts about Tan’s business strategy improving Intel’s outlook.

Foundry Loss and Business Strategy

In February 2024, Intel unveiled its foundry business, producing semiconductors for external customers like Microsoft. However, during the company’s second-quarter earnings call in 2025, Tan announced changes to manufacturing plans and a 15% reduction in the workforce.

Tan emphasized the need for customer commitments before further investments, leading Barrett to criticize Intel’s strategy as short-sighted. He called for Intel’s major customers to fund advanced manufacturing processes to support the chipmaker and potentially compete with TSMC.

Industry experts believe Intel’s new chip manufacturing process could attract business from competitors like TSMC, with Intel 14A set to be available in 2026. Reports suggest products made using the 14A process could start shipping in 2027.