{"id":5566,"date":"2025-08-08T17:06:50","date_gmt":"2025-08-08T17:06:50","guid":{"rendered":"https:\/\/friscotimes.org\/?p=5566"},"modified":"2025-08-11T01:14:08","modified_gmt":"2025-08-11T01:14:08","slug":"the-day-after-trump-called-intels-chief-conflicted-former-directors-call-for-a-new-company-a-new-board-and-a-new-ceo","status":"publish","type":"post","link":"https:\/\/friscotimes.org\/?p=5566","title":{"rendered":"The day after Trump called Intel\u2019s chief \u2018conflicted,\u2019 former directors call for a new company, a new board, and a new CEO"},"content":{"rendered":"\n

Four former Intel board members are backing President Donald Trump\u2019s surprise attack on the company\u2019s CEO, but they are pushing for a shake-up that is both more dramatic and wholly in line with their vocal criticism of late.<\/p>\n

\n

In a rare collective statement provided exclusively to Fortune,<\/em> the former directors said the fate of CEO Lip-Bu Tan should be decided by Intel shareholders and its board, but called for a radical restructuring that would spin off Intel\u2019s manufacturing arm into an independent company to secure America\u2019s chipmaking dominance.<\/p>\n

The group of former Intel board members\u2014Charlene Barshefsky<\/a>, Reed Hundt<\/a>, James Plummer<\/a>, and David Yoffie<\/a>\u2014pointed out that the company is on its fourth CEO in seven years with little improvement in results. They argued that only a dramatic break could restore Intel\u2019s competitiveness and protect U.S. national security interests, with a rescue plan focused specifically on emancipating Intel\u2019s \u201cFoundry\u201d business, the manufacturing assets in which Intel produces semiconductor chips for its own products and for third-party customers. These advanced chip fabrication facilities are increasingly top of mind for President Donald Trump, his Chinese counterpart, Xi Jinping, and the entire tech industry, watching as the drama unfolds.<\/p>\n

Intel was long the leader in chips but has fallen behind Nvidia, TSMC, and other players in recent years, as Barshefsky, Hundt, Plummer, and Yoffie argued in the pages of Fortune<\/em>. Intel has two main businesses, one being the Foundry and the other, called simply Intel Products<\/a>, which includes its flagship PC and server microprocessors, as well as networking equipment and software. Both are essential for computing, but only the Foundry is key to national security, which has been a key point in trade talks between Trump and Xi. The group of former directors argued that splitting the chips manufacturing entity from the rest of Intel would directly address both market competitiveness and the nation\u2019s strategic need for advanced semiconductors.<\/p>\n

The group called for Intel shareholders to insist on the split, which would create a new, independent manufacturing entity, with its own CEO and board. To make the new company competitive with TSMC, the former directors called for remaining funds under the CHIPS Act to go toward supporting the company and to help \u201cpersuade American design firms to place orders.\u201d That would position the new company as an alternative to TSMC, \u201cboth for cutting-edge chips needed for data-center and other commercial purposes and for national security requirements.\u201d<\/p>\n

Mounting pressure<\/strong><\/h2>\n

The statement comes as pressure on Intel intensifies, after President Donald Trump publicly called for CEO Lip-Bu Tan\u2019s resignation over his \u201cconflicted\u201d status and alleged ties to Chinese technology firms. Trump\u2019s demand, posted on Truth Social Thursday morning, sent shock waves through U.S. tech circles and drew swift responses from the company.\u00a0<\/p>\n

Tan responded in a letter to staff, posted publicly on Intel\u2019s website<\/a>, claiming there has been \u201cmisinformation\u201d about his career and past leadership roles. The embattled CEO said that Intel is \u201cengaging\u201d with the Trump White House to \u201caddress the matters that have been raised and ensure they have the facts.\u201d He added that he fully shares the president\u2019s commitment to advancing U.S. national and economic security.\u00a0<\/p>\n

President Trump\u2019s intervention followed Sen. Tom Cotton\u2019s warnings over reports of Tan\u2019s prior investments in Chinese firms, some allegedly tied to China\u2019s military. Trump\u2019s demand for an immediate CEO change provoked a 3% drop in Intel\u2019s stock Thursday, compounding\u00a0board-level discord and market concerns about the company\u2019s stagnation and loss of ground to rivals such as Nvidia and AMD.<\/p>\n

In his note to staff on Thursday, Tan defended his integrity and claimed the current board was \u201cfully supportive\u201d of the work currently underway at Intel, while insisting that throughout his four decades in the industry, he has \u201calways operated within the highest legal and ethical standards.\u201d<\/p>\n

Intel did not immediately respond to a request for comment.<\/p>\n

In a previous statement to Fortune<\/em>, however, the company pushed back on criticism, saying its board and CEO are \u201cdeeply committed to advancing U.S. national and economic security interests\u201d and were making \u201csignificant investments aligned with the President\u2019s America First agenda.\u201d<\/p>\n

Intel noted it has been manufacturing in the U.S. for 56 years and is investing billions of dollars in domestic semiconductor R&D and manufacturing, including a new Arizona fab that will run the most advanced process technology in the country. The company added that it was \u201cthe only company investing in leading logic process node development in the U.S.\u201d and said it looked forward to \u201ccontinued engagement with the Administration.\u201d<\/p>\n

Correction, Aug. 8, 2025: <\/em>A previous version of this story incorrectly stated that the four former directors called for the ouster of Intel\u2019s CEO. The group of former directors said that Intel shareholders should make the decision about the CEO.\n<\/p>\n<\/div>\n

Introducing the 2025 Fortune Global 500<\/strong>, the definitive ranking of the biggest companies in the world. Explore this year’s list.<\/div>\n\n","protected":false},"excerpt":{"rendered":"

Four former Intel board members are backing President Donald Trump\u2019s surprise attack on the company\u2019s CEO, but they are pushing for a shake-up that is both more dramatic and wholly…<\/p>\n","protected":false},"author":740,"featured_media":5567,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[6],"tags":[4629,1410,6840,111,3212,936,6842,519,6843,6841,30],"jetpack_publicize_connections":[],"yoast_head":"\nThe day after Trump called Intel\u2019s chief \u2018conflicted,\u2019 former directors call for a new company, a new board, and a new CEO - 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