President Donald Trump met on Monday at the White House with Intel CEO Lip-Bu Tan, just days after demanding that the head of the chipmaker resign.
According to Truth Social posts from Trump, the meeting included Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent. Intel shares climbed 2% in extended trading after news of the talks.
Trump described the conversation as “very interesting” and said Tan’s career path was “an amazing story.” He said Tan would continue meeting with members of his cabinet over the next week to provide him with suggestions on technology and manufacturing policy.
Intel confirmed the meeting, saying Tan and Trump had a candid discussion about Intel’s role in strengthening U.S. leadership in both sectors.
Trump moves from resignation call to praise
Tan has been part of Intel’s board since 2022 and took over as CEO in March after replacing Pat Gelsinger. Last week, Trump accused Tan of being “highly conflicted” and called for his resignation, citing concerns raised by Republican Senator Tom Cotton.
Cotton had questioned Tan’s past leadership at Cadence Design and whether Intel required him to divest from any investments in Chinese chipmakers tied to the Chinese Communist Party, the People’s Liberation Army, or other groups considered problematic by U.S. officials.
Intel responded last week that the company, its board, and Tan were committed to U.S. national and economic security interests. Despite that, Trump posted on Thursday that there was “no other solution” but for Tan to step down. Monday’s meeting signaled a major change in his approach, with the president now referring to Tan’s rise as a success story.
The meeting came at a time when Trump’s administration has been deeply involved in semiconductor policy as the U.S. competes with China for dominance in artificial intelligence. This includes intervention in corporate deals and export control arrangements involving major chipmakers.
Nvidia payment deal highlights broader policy push
Just days before meeting Tan, Trump hosted Nvidia CEO Jensen Huang at the White House. Over the weekend, Nvidia agreed to give the federal government a 15% cut of sales from its H20 chip to China and Chinese firms in exchange for new export control licenses.
Trump said on Monday that he initially wanted a 20% cut but settled on 15% after Huang negotiated with him, telling reporters in Washington, D.C., “I want 20% if I’m going to approve this for you, for the country.”
Tan, 65, inherited Intel while it was losing ground in the AI chip market dominated by Nvidia and burning cash to expand its foundry manufacturing business. Born in Malaysia and raised in Singapore, he moved to the U.S. for graduate school, earning a master’s degree from the Massachusetts Institute of Technology.
In July, Tan told analysts that his early months at Intel were challenging. The company had cut jobs and reduced its foundry operations.
He also announced the cancellation of planned manufacturing plants in Germany and Poland and the slowdown of a project in Ohio. “Turning the company around will take time and require patience,” Tan said during the call.
As of Monday’s close, Intel’s stock was up 3% for the year, compared to an 8.4% gain for the S&P 500. The meeting between Trump and Tan adds another layer to the administration’s active role in reshaping the semiconductor industry’s leadership and its competitive stance against China.
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Source: https://www.cryptopolitan.com/trump-reverses-course-on-intel-ceo/