By Robert Schroeder and Emily Bary
Just days ago, Trump called for Lip-Bu Tan’s firing. Now he’s praising the Intel CEO’s ‘amazing’ success story, suggesting that tensions are easing.
An Intel spokesperson called Monday’s meeting “a candid and constructive discussion.”
Intel Corp.’s chief executive visited the White House on Monday for a high-stakes meeting with President Donald Trump, which has seemed to de-escalate tensions between the chipmaker and Washington.
Just days after calling for him to quit over his ties to Chinese businesses, Trump posted on Truth Social that Monday’s meeting was “a very interesting one” and that Intel (INTC) CEO Lip-Bu Tan’s “success and rise is an amazing story.”
It’s a different tone than the one Trump took in a post last week, when he declared that Tan was “highly conflicted” and that “he must resign, immediately.” Back then, the president said there was “no other solution to this problem.”
Now he’s suggesting a path forward for Tan, who according to the latest dispatch will “spend time” with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent “and bring suggestions to me during the next week.”
An Intel spokesperson called the meeting “a candid and constructive discussion on Intel’s commitment to strengthening U.S. technology and manufacturing leadership.”
“We appreciate the president’s strong leadership to advance these critical priorities and look forward to working closely with him and his administration as we restore this great American company,” the spokesperson continued,
Even before Tan’s political battle with Trump, Intel had been under pressure as it attempted a turnaround and questioned whether it could stay in the semiconductor-manufacturing business without significant outside business for its upcoming process technology.
Investors will now be waiting to see the results of Tan’s conversations with Trump’s cabinet members, which could indicate whether the company gains a government ally in its efforts to win more chip-making business or faces yet another obstacle to getting back on track.
For now, Intel’s stock rose 2.5% in after-hours trading Monday after rising 3.7% in the regular session.
Tech stocks: Trump’s clash with Intel’s CEO isn’t just politics – it’s a crucial test for U.S. chip making
One problem for Tan involves Cadence Design Systems Inc. (CDNS), which he led until 2021. The chip-design software company has since pled guilty to charges of export violations. Additionally, Tan’s venture-capital firm’s investments in Chinese companies have drawn scrutiny.
Intel’s billions of dollars in funding from the federal government could be at risk, suggested Sen. Tom Cotton, an Arkansas Republican who is pressing the company and Tan for responses to several queries by Friday.
Read: Trump calls for Intel’s CEO to go. Lawmakers have focused on his ties to China.
“Intel was awarded nearly $8 billion from the CHIPS and Science Act, the largest grant to a single company,” Cotton wrote in an Aug. 5 letter to the chair of Intel’s board of directors. As a result, the company “is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations. Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations,” Cotton wrote.
Last month, Cadence Design Systems, which is a leader in electronic design automation, agreed to plead guilty to charges that it violated U.S. export controls by selling EDA technology to China’s National University of Defense Technology, which is under the leadership of China’s Central Military Commission.
That said, this isn’t the first time that Trump has expressed national-security concerns about major chipmakers. He took issue with Nvidia Corp.’s (NVDA) H20 chips and Advanced Micro Devices Inc.’s (AMD) MI308 chips that were retrofitted for sale to China, effectively banning the companies from selling them to the region. But then he relented after Nvidia and AMD agreed to share a portion of that revenue with the U.S. government.
See more: Nvidia and AMD reportedly strike deals with Trump – but analysts see a ‘slippery slope’
Intel is trying to turn things around after years of miscalculations and missteps. Tan took over as chief executive in March after the exit of Pat Gelsinger late last year. With the spotlight from Washington on the company, the turnaround effort is now in doubt.
One question for Intel investors is whether the company will stay in the chip-manufacturing business. Intel is the only U.S. manufacturer of leading-edge semiconductors, but management signaled on the last earnings call that it may not make sense to continue in the manufacturing business if it can’t find a significant external customer for its next-generation process technology.
That’s another development that may not be sitting well in Washington, given the strategic importance of having a domestic semiconductor manufacturer as well as the potential economic consequences if Intel should abandon its pursuits. The company has already delayed an Ohio plant that was hailed as a source of job creation.
Britney Nguyen contributed.
-Robert Schroeder -Emily Bary
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08-11-25 2235ET
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