Intel CEO Lip-Bu Tan “Closes the Gap” with Trump — Government Support Could Be Key to Turnaround

TradingKey - Less than a week after U.S. President Donald Trump publicly criticized Intel CEO Lip-Bu Tan, calling him “highly conflicted” and demanding his immediate resignation, a meeting between the two appears to have shifted the narrative. The semiconductor giant’s CEO has used corporate diplomacy to open a new chapter in Intel’s efforts to return to profitability.

On Monday, August 11, Trump posted after meeting with Tan at the White House that the discussion was “very interesting” and that Mr. Tan’s success and rise is an “amazing story.” This statement stands in sharp contrast to Trump’s comments last Thursday, when he issued what amounted to a “dismissal order” for the Intel CEO.

Trump said Tan will spend time with his cabinet team and will present recommendations to him during the next week.

Intel stated that it had a “candid and constructive discussion” on the company’s commitment to strengthening U.S. technology and manufacturing leadership, and that it looks forward to working closely with the U.S. government to revitalize this great American company.

As a major beneficiary of the Biden CHIPS Act subsidies, Intel has struggled in recent years. Tan has said that 20 to 30 years ago, Intel was clearly the leader, but it has since fallen out of the top ten semiconductor companies.

In its second-quarter earnings, Intel reported revenue of $12.9 billion, above the $11.9 billion consensus. However, its foundry business, while generating $4.4 billion in revenue, also posted a loss of $3.17 billion.

The CEO, who took office in March, has pledged to return the company to profitability through business streamlining — after five consecutive quarterly losses since Q3 2024 — including workforce reductions and slowing the construction of cutting-edge chip fabs. Last month, he even warned of abandoning development of the next-generation 14A chip.

As one of the few U.S.-based companies capable of balancing international chipmakers like TSMC, some analysts warn that if Intel abandons R&D on the most advanced chip manufacturing processes, it could deepen America’s reliance on overseas production — marking the “beginning of the dark end” for U.S. semiconductor manufacturing.

Due to his Malaysian background and past Chinese investment ties, Tan has been labeled by some U.S. officials as a potential national security and interest risk. Bloomberg noted that for Intel to successfully navigate the shifting political landscape — where semiconductors are increasingly seen as tools for competing with China and bolstering domestic influence — Tan must work harder to strengthen relations with the U.S. government.

News of the reconciliation between Tan and Trump boosted Intel’s stock, which rose 3.51% on Monday and gained another 3% in after-hours trading. Year-to-date, Intel has recovered all its losses and is now up 3%.