The call for action followed similar concerns by Republican Senator Tom Cotton of Arkansas.
Cotton wrote to Intel board chair Frank Yeary and specifically cited news that Tan has invested, personally as well as through venture capital funds (here, here), in hundreds of Chinese firms, including some affiliated with China's military.
Political and Market Pressure Mounts
In a scathing letter, which Senator Cotton tweeted about (above), he said: "The new CEO of intel reportedly has deep ties to the Chinese Communists. The board of Intel owes Congress an explanation.
The fact is, as I said in the hearing, businesses that are getting bailouts need to be expected to also comply with national security.
In a public statement, Intel wrote that it was still committed to U.S. national and economic security and supported the administration's "America First" policies. The company has also stated it would work with the Trump administration in the future.
Intel shares fell 3% following Trump's comments and the controversy on Thursday, closing at $47.
Background Information on Lip-Bu Tan and Intel: Recent Challenges
Intel, which just can't seem to keep up with the big names in the semiconductor industry, was in a make-or-break moment this spring when it turned over its reins to CEO Lip-Bu Tan.
Other AI companies, such as Nvidia (which recently hit the $4 trillion market cap), have seen vast success in this lucrative field, while Intel has been plagued by internal roadblocks like a 15% workforce reduction announced in July related to ongoing restructuring efforts for the company.
Previously, Tan was chairman of Cadence Design Systems and a co-founder of Walden Catalyst Ventures.
Those business relationships and earlier investments are increasingly central to U.S. political questions about the role of Chinese-linked ventures in American tech companies.
It also follows previous criticism of Intel, a chipmaker that was thrust back into the spotlight by Trump after a recent joint appearance with Apple CEO Tim Cook, where Apple announced it would put $100 billion towards domestic operations.
Intel was just really taken over the coals,' Trump said. "Frankly, we just cleaned them out.
As the scandal stretches out around Intel, no doubt all eyes will hone in on both its management and board over the next few weeks.
Politics
Trump Demands Intel CEO Resignation Over China Ties

Intel CEO Lip-Bu Tan should resign after former President Donald Trump says his Chinese connections are a conflict and a threat to US National Security. The CEO of INTEL is highly Conflicted and must resign immediately, Trump wrote in a post on Truth Social Thursday. There is no other way out of this.