The CEO of Oregon’s largest private employer is publicly affirming his commitment to U.S. national security and economic growth after a social media attack from President Donald Trump earlier this week.
Intel CEO Lip-Bu Tan said there’s been “misinformation circulating” about investments he made in past roles with other firms. Recently, U.S. Sen. Tom Cotton, R-Arkansas, brought up concerns around Tan’s investments in Chinese companies that have ties to the government.
Tan, a veteran in the computer chip industry, wrote in a statement directed to Intel employees Thursday that the company is engaging with the Trump administration.
“I want to be absolutely clear: Over 40 plus 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,” Tan said in the statement. “My reputation has been built on trust — on doing what I say I’ll do, and doing it the right way.”
In his statement, Tan indicates he has the support of Intel’s board of directors.
Intel employs around 18,000 people in Oregon, mostly at its major research and development manufacturing campus in Hillsboro. However, that’s down from its peak of 23,000.
The semiconductor company has lost ground in recent years to rivals that were able to pivot quickly to serve the booming artificial intelligence industry. Intel posted nearly $19 billion in losses last year and the previous CEO abruptly retired in December.
Tan took over the role in March and started aggressively cutting costs. Intel has laid off more than 2,000 Oregon workers this year, and told investors it was pulling back on manufacturing.
On Wednesday, Trump called for Tan’s immediate resignation in a post on Truth Social, calling the chipmaker’s CEO “highly conflicted.” It was almost certainly a reference to concerns similar to Cotton’s, regarding Tan’s investments in Chinese companies.
It’s legal for American business leaders to have holdings in other countries, and the U.S. president does not have the authority to remove a company’s CEO.
Trump’s public call for Tan’s resignation is similar to how he’s treated political rivals, according to Chandler James, an associate political science professor at the University of Oregon.
Trump is taking a more aggressive approach to interacting with businesses — and most organizations — than is often seen from the highest office, James said.
“This is not an isolated incident of Trump pressuring this one individual,” James said, “but a part of a pattern of activity that seeks to use the power of the presidency — and all the resources of the government to — bring pressure on individuals and businesses, and groups such as universities or law firms, to change their policies in a way that Trump sees fit.”
Presidents are normally reluctant to use the power of the government to go after an individual company, or college, or person, James said. Trump, in contrast, has chosen to use his leverage.
“It’s hard for one individual to stand up to the full might of the federal government,” James said.
Trump’s demand for Tan’s resignation comes as the administration is brokering deals with other major companies to invest in America. Technology giant Apple said this week it would spend an additional $100 billion to bring some of its supply chain to the U.S. in order to mitigate the cost of tariffs.
The administration may be hoping for a similar commitment from Intel, according to Gabelli Funds research analyst Ryuta Makino.
“I think, if you read between the lines, that’s what President Trump is after,” Makino said. “Just from a timing perspective.”
The problem is, Makino said, Apple has more money to invest. Intel is pulling back on investments and trimming costs after struggling financially in recent years.
Intel stocks tumbled after the president’s social media post, but Makino said overall investors are more concerned with Intel’s previous performance.
As for the president’s statement, Makino doesn’t see it making a difference, long-term. He said it’s just a brief distraction.
“It’s noise,” Makino said. “I think it’s purely noise.”
This story comes to you from the Northwest News Network, a collaboration between public media organizations in Oregon and Washington.