Intel (INTC.US) is currently at the center of controversy after U.S. President Trump called for the immediate resignation of the company's CEO on his Truth Social account, calling him "highly conflicted." Due to this political intervention and recent scrutiny of Intel's alleged ties to China, the company's shares are currently down 4.4% ahead of the Wall Street open.
The recent turmoil surrounding Intel has intensified following a letter from Republican Senator Tom Cotton to the chairman of the company's board, in which the senator raised serious questions about new CEO Lip-Bu Tan's ties to Chinese technology companies and a criminal case related to his former employer, Cadence Design Systems. Cotton questioned, among other things, whether the Intel board was aware of the document subpoenas sent to Cadence during Tan's tenure, and what steps were taken to mitigate risks stemming from his investments in companies linked to the Chinese military sector. These allegations have deepened the debate over US national security, especially since Tan still controls or is affiliated with over 40 Chinese companies and funds, and holds smaller stakes in over 600 other companies, including at least eight with ties to the People's Army. Intel has declared its willingness to cooperate with authorities and assured that Tan and the company remain "deeply committed to US national security."
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Create account Try a demo Download mobile app Download mobile appAn additional source of market uncertainty is the US government's new, harsh demands on Taiwan's TSMC: President Trump issued an ultimatum that a 20% tariff on Taiwanese chip imports will be maintained unless TSMC acquires a 49% stake in Intel and invests an additional $400 billion in the US. Such demanding conditions are described by industry analysts and experts as practically unrealistic and threaten to seriously disrupt global semiconductor value chains.
Source: Yahoo Finance
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