Intel CEO Lip-Bu Tan is due to meet President Donald Trump at the White House, to clarify suspicions about his links with China. This interview comes after Trump’s violent public outburst on August 8, calling for Lip-Bu Tan’s resignation, based in particular on a letter from Senator Tom Cotton. At the heart of the matter is Lip-Bu Tan’s history at Cadence Design Systems, which accepted a $140 million settlement after illegal software sales to a military-linked Chinese university, a period partly overlapping with his tenure from 2008 to 2021. Lip-Bu Tan intends to reaffirm his alignment with American priorities, then propose avenues for State-Intel cooperation, while recalling Intel’s investments in the United States supported by the CHIPS Act.According to the Wall Street Journal, the aim is to remove any doubt about possible conflicts of interest, including past investments in Chinese companies, perceived as sensitive in the current geopolitical context. This sequence comes at a time when political pressure is mounting, and Intel’s industrial timetable remains under close scrutiny, including on the subject of US capacity in the production of sophisticated chips. Several questions remain concerning President Trump’s position. On the one hand, he has every interest in favoring the maintenance and development of Intel’s Foundries activities, while on the other, he is rumored to be in favor of those who advocate splitting up the company to consider a conglomerate with TSMC for production activities.
In the meantime, while Intel’s timetable is particularly crucial in the coming months to ensure the company’s return to the forefront, the current climate does not augur well.
It is to get out of this negative spiral quickly that the exchange in Washington has been scheduled. Lip-Bu Tan will attempt to stabilize relations with the executive, and in turn reassure markets, partners and public officials.
