The tech world is buzzing with controversy as Intel’s newly appointed CEO, Lip-Bu Tan, finds himself at the center of a political firestorm. Senator Tom Cotton and former President Donald Trump are demanding Tan’s immediate resignation, citing potential national security risks due to his extensive investments in Chinese technology companies.

Tan, who took over as Intel’s CEO in March 2025, has a complex background that’s now under intense scrutiny. His venture capital firm, Walden International, has significant investments in numerous Chinese tech firms, with reports suggesting at least eight of these companies have connections to China’s People’s Liberation Army.

The allegations stem from Tan’s previous leadership at Cadence Design Systems, where the company was fined $95 million by the U.S. Department of Commerce for allegedly transferring sensitive technology to entities supporting China’s military modernization efforts. This history has raised red flags for national security hawks like Cotton, who argue that such connections pose significant risks to U.S. technological sovereignty.

Intel, a Silicon Valley titan founded in 1968, is already struggling to maintain its technological edge. The company has been shedding workers and cutting expenses in an attempt to compete in an increasingly competitive semiconductor market. The ongoing controversy comes at a particularly vulnerable time, with the chipmaker having received over $8 billion in federal funding through the CHIPS Act.

The situation highlights the growing tensions between technological innovation and national security, particularly in the semiconductor industry. As artificial intelligence and advanced computing become increasingly critical to global economic and military power, the stakes for technological supremacy have never been higher.

While Intel has not yet publicly responded to the allegations, the company’s stock has already felt the impact, sliding 3.5% following Trump’s social media demand for Tan’s resignation. The unfolding drama underscores the complex geopolitical landscape that tech companies must navigate in an era of increasing global technological competition.