Overview

• President Trump called on Intel CEO Lip-Bu Tan to step down immediately, calling him “highly conflicted” over his past ties to Chinese firms.
• Senator Tom Cotton’s letter to Intel’s board raised concerns about Tan’s reported $200 million-plus investments in hundreds of Chinese companies, some linked to the military and Communist Party.
• In July, Cadence Design Systems pleaded guilty and agreed to pay over $140 million in penalties for selling chips to a Chinese military university during Tan’s leadership.
• Intel stated that it and its board are “deeply committed” to U.S. national security and will address all oversight questions by August 15.
• Shares of Intel fell up to 5% in early trading as investors weighed the impact of intensified political scrutiny on the company.