President Donald Trump has called for the immediate resignation of Intel chief executive Lip-Bu Tan, accusing him of having troubling ties to China.

In a social media post, Trump said the head of the US chipmaker was “highly conflicted” due to alleged investments in companies linked to the Chinese military.

His demand comes just months after Tan’s appointment in March to lead the turnaround of the American semiconductor pioneer, which has struggled to keep pace with global competitors.

The public attack is unusual for a sitting president, as it targets the head of a private company that has received billions of dollars in government funding to rebuild domestic chip manufacturing. Intel is a key player in Trump’s push to strengthen the US technology sector through his “America First” agenda.

Intel responded in a statement on Thursday, saying it was making large-scale investments in the US in line with Trump’s policies. “Intel, the Board of Directors, and Lip-Bu Tan are deeply committed to advancing US national and economic security interests. We look forward to our continued engagement with the administration,” the company said.

Tan, a naturalised US citizen born in Malaysia and raised in Singapore, is a well-known venture capitalist with deep experience in the semiconductor industry.

In a recent update to investors, he announced plans to scale back manufacturing investments, including in the US, to match customer demand. The company has already cut thousands of jobs this year in a bid to “right-size” its operations.

Intel’s shares dropped more than 3% by midday after Trump’s comments. “The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,” Trump wrote.

It is not illegal for Americans to invest in Chinese companies, but US authorities have tightened restrictions on such ties since Trump’s first term, citing national security concerns shared by both major political parties.

Trump’s remarks echo those of Republican Senator Tom Cotton, who wrote to Intel’s board this week saying Tan’s “associations raise questions about Intel’s ability” to safeguard taxpayer money and comply with security regulations.

Cotton highlighted Tan’s past leadership at Cadence Design Systems, which pleaded guilty in July to violating US export controls through a Chinese subsidiary’s dealings with the National University of Defense Technology.

The firm agreed to pay $140 million in fines. Tan was not charged.

Intel has defended Tan, stating earlier this week that he and the company are “deeply committed to the national security of the US and the integrity of our role in the US defense ecosystem.”

Industry analyst Patrick Moorhead suggested Trump’s attack may be part of a wider dispute over Intel’s US investments and reports of a possible partnership with Taiwanese chip giant TSMC, which has White House backing. “It’s apparent to me that there was some negotiation amongst the two that Trump didn’t like,” he said. “Trump probably saw, ‘Ok, I’ve got an opportunity to turn up the heat with Intel on this’.”

Moorhead added that other tech leaders targeted by Trump have sought to smooth relations with high-profile US investment commitments. “Intel probably misread the room on how important it was to get in and be visible with the White House,” he said.

The White House defended Trump’s position, telling the BBC: “President Trump remains fully committed to safeguarding our country’s national and economic security. This includes ensuring that iconic American companies in cutting-edge sectors are led by men and women who Americans can trust.”

Tan’s business links to China were highlighted in a 2024 congressional report and a Reuters investigation earlier this year, which found he had invested at least $200 million in hundreds of Chinese companies — some with ties to the Chinese military — between 2012 and December 2024.

Republican Senator Bernie Moreno, a Trump ally, also criticised Intel on Thursday over delays in its US manufacturing plans.

Janet Egan, senior fellow at the Center for a New American Security, warned that the leadership dispute could hurt America’s chip-making ambitions. “Intel has been a hope for America to build out more chip capacity and has struggled to do so to date,” she said. “It’s important that we get continuity of leadership to support that ramping up of capacity.”