U.S. President Donald Trump has signaled a willingness to work with Intel chief executive Lip-Bu Tan, softening his earlier demand for the executive to step down.
In a post on Truth Social, Trump said Tan would collaborate with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent over the next week to provide recommendations on how the U.S. government can support Intel as it navigates financial challenges in its chip manufacturing division.
Trump met with Tan on Monday afternoon alongside the two cabinet members, describing the meeting as “very interesting” and praising Tan’s professional journey as “an amazing story.” He added that his administration would review proposals from Tan and his team in the coming days.
Intel issued a statement calling the discussions “candid and constructive” and reaffirming its commitment to bolstering U.S. technology and manufacturing leadership. The company expressed appreciation for the president’s “strong leadership” and said it looked forward to working closely with the administration.
The meeting comes as Intel faces mounting pressure. While it has been a major beneficiary of the Biden-era semiconductor subsidies, its foundry business has suffered heavy losses. The company has also struggled to capitalize on the artificial intelligence infrastructure boom. Last month, Tan warned that Intel could exit advanced chip production if it fails to secure major clients for its new 14A manufacturing process — a move that could leave the U.S. without a domestic alternative to Taiwan Semiconductor Manufacturing Company.
Tan, who became Intel’s CEO in March after the board ousted Pat Gelsinger, has implemented aggressive cost-cutting measures, including staff reductions and the cancellation of manufacturing projects in Europe.
The controversy surrounding Tan deepened after Senator Tom Cotton, chair of the Senate Intelligence Committee, raised concerns about Intel’s operational security and Tan’s past business ties to China. From 2008 to 2021, Tan served as CEO of Cadence, a chip design software firm that recently admitted to violating U.S. export controls by selling tools to a Chinese university linked to the country’s military.
In response, Malaysia-born Tan, who has lived in the U.S. for four decades, rejected what he called “misinformation” about his background, insisting that he has always adhered to the highest legal and ethical standards.
Intel’s shares rose 3.7% on Monday, with an additional 2.4% gain in after-hours trading following news of Tan’s meeting with the president.