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."
Start investing today or test a free demo
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
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
