Never Mind Trump — Intel CEO Lip-Bu Tan Is Already Said To Be Fighting Intense Battle With Board

Intel CEO Lip-Bu Tan has cleared the air after a media report suggested he was fighting an intense battle with the struggling chipmaker Intel’s (INTC) board, even as he faces unprecedented political pressure to step down.

The dramatic developments involving the once-iconic chipmaker, which has since fallen from grace, started with President Donald Trump calling for his immediate resignation in a Truth Social post. He called out Tan for being “highly conflicted” after Sen. Tom Cotton (R-Ark.) said the Intel CEO’s connections with Chinese companies pose a security threat to the U.S.

Intel stock shed 3.14% on Thursday amid the development. On Stocktwits, retail sentiment toward Intel stock remained ‘bullish’ (74/100) early Friday, with the score notching up a bit, while message volume remained ‘high.’

A Wall Street Journal report, published late Wednesday, cited people familiar with the matter and noted that Tan was already at odds with some directors of Intel’s board. The differences of opinion stemmed from whether the company should persist with its in-house manufacturing or exit it entirely.

Intel Chairman Frank Yeary, an investment banker, had previously drawn up a plan to exit the foundry business. He was eyeing a spin-off of the unit, allowing chipmakers such as Nvidia and Amazon to take stakes in it. He even contemplated selling the foundry business entirely to TSMC (TSM).

Also, the board reportedly stopped Tan from raising fresh capital and opposed his bid to buy an artificial intelligence (AI) company.

Tan, a former Cadence Design Systems executive, became Intel’s CEO in March, taking over from co-CEOs David Zinsner and Michelle Holthaus, who operated on an interim basis after Pat Gelsinger was ousted in late 2024.

In an internal memo sent to employees amid the unsavory developments, Tan reaffirmed his commitment to the company and the U.S. The company published the memo on its website. “There has been a lot of misinformation circulating about my past roles at Walden International and Cadence Design Systems,” Tan said.

“I want to be absolutely clear: Over 40+ years in the industry, I’ve built relationships around the world and across our diverse ecosystem – and I have always operated within the highest legal and ethical standards.”

The executive said he was engaging with the Trump administration to address the matters that have been raised and ensure it has the facts, adding that “I fully share the President’s commitment to advancing U.S. national and economic security.”

Tan claimed that he has the board’s backing. “The Board is fully supportive of the work we are doing to transform our company, innovate for our customers, and execute with discipline – and we are making progress,” he said.

Intel’s stock has fallen over 2% this year.

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