President Trump and senior officials met with Intel CEO Lip-Bu Tan in Washington on Monday, four days after the president had called on Tan to resign immediately following reports of Tan’s connections to Chinese companies.
The meeting with Tan was “a very interesting one,” Trump wrote on Truth Social on Monday, adding, “His success and rise is an amazing story.” Trump added he and cabinet members will discuss “suggestions” in the coming week.
In a statement, Intel said the Monday meeting with Tan and Trump resulted in a “candid and constructive discussion on Intel’s commitment to strengthening US technology and manufacturing leadership. We appreciate the President’s strong leadership to advance these critical priorities and look forward to working closely with him and his Administration as we restore this great American company.”
The turnabout in Trump’s attitude toward Tan surprised some observers, but not others who have described Trump’s style as similar to his “Art of the Deal” philosophy--one designed to keep opponents and negotiation partners in a state of some confusion or off- balance as to what Trump is willing to give up at the end of a negotiation.
Generally, Trump has promulgated a series of tariffs and other executive orders designed to push US tech companies to build manufacturing facilties in the US. Intel has been awarded $8 billion in government grants to build chip fabs in the US and has received $2 billion of that total.
Patrick Moorhead, analyst at Moor Insights & Strategy, noted that keeping as a viable fab would make it the only US-based company making advanced chips in the US. But Tan has apparently faced opposition to keeping Intel in the business of making chips for third parties from board members, including Chairman Frank Yeary. They want Intel to spin off the chip fab business.
Trump’s earlier call for Tan to resign came after US Sen. Tom Cotton, R-Ark., questioned Tan’s ties to the Chinese government when Tan was CEO of Candence Design Systems and entered into contracts with Chinese entities, some connected to the Chinese party.
Separately, Trump disclosed on Monday in a news conference that he had asked for a 20% share of Intel’s China chip revenues, but eventually the number came down to 15% after Nvidia CEO Jensen Huage negotiated with him.
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