August 08, 2025
Trump: Chen Liwu must resign immediately! Intel responds!
US President Trump has stated that the CEO of Intel has a serious conflict of interest and must resign immediately. There is no other solution to this problem.
This statement also cast a heavy shadow over the future direction of Intel, which is currently undergoing changes, directly leading to a nearly 5% drop in Intel's stock price in pre-market trading.
Futurum Group's Chief Semiconductor Analyst Ray Wang said, "This is a crisis point for how Intel will handle its relationship with the US government in the future." He warned that Trump's interference could make the situation worse.
Phil Blancato, CEO of Ladenburg Thalmann Asset Management, a financial company, expressed concern that the incident could set a bad precedent, saying, 'You don't want the President of the United States to decide who will manage the company.'.
According to the data, Chen Liwu was born in Malaysia in 1959, grew up and received education in Singapore, graduated from Nanyang University with a Bachelor's degree in Physics, and then majored in Nuclear Engineering at the Massachusetts Institute of Technology in the United States, obtaining a Master's and Doctoral degree. He later founded the venture capital company Walden International.
In 2017, the data analysis company Relationship Science selected Chen Liwu as one of the most connected executives in the technology industry and gave him a perfect score of 100 in the "Power Rating"
65 year old Chen Liwu took over as CEO of Intel from his predecessor Pat Gelsinger in March this year, and he is also the first Chinese CEO in Intel's history. After taking office, he proposed a series of reform measures, hoping to once again turn Intel into a customer-centric and engineering centric company.
In order to achieve this goal, Chen Liwu streamlined about 50% of the management hierarchy, making management more flat, while divesting non core businesses and initiating layoffs, thus focusing resources more on core businesses. Including plans to reduce the company's workforce to 75000 by the end of the year, a decrease of approximately 22%. In addition, Intel has promised to adopt a more cautious strategy in manufacturing investments.
Intel once dominated the field of chip manufacturing, but in recent years it has lagged behind its Taiwan, China rival TSMC in manufacturing technology, and has almost no share in the AI chip market, which is currently dominated by Nvidia.
When Chen Liwu took over Intel, the industry generally believed that with his abilities, he could save Intel from the current "crisis". At present, Chen Liwu has only been serving as CEO of Intel for less than 5 months, and the reform of Intel is still actively underway. If Chen Liwu is forced to resign at this time, it will obviously be extremely unfavorable for Intel's future development. At the same time, this controversy undoubtedly adds new uncertainty to Intel's ongoing strategic transformation.
In response to this, Intel issued a statement rejecting Trump's call for CEO Chen Liwu to resign and promising to make "significant investments" in the president's "America First" agenda.
Intel, the Board of Directors, and Chen Liwu are firmly committed to advancing the national and economic security interests of the United States and making significant investments in accordance with the President's America First Agenda, "Intel said in a statement released on Thursday
Intel has been manufacturing in the United States for 56 years. We will continue to invest billions of dollars in domestic semiconductor research and manufacturing, including our new factory in Arizona, which will adopt the most advanced manufacturing process technology in the United States, and we are the only company to invest in leading logic process node development in the United States. We look forward to continuing to work with the government
In addition, regarding Trump's request for Intel CEO Chen Liwu to resign, Stacy Rasgon, a senior analyst at Bernstein Research, commented, "Chen Liwu's activities in China are not secret. He is a legendary figure in the semiconductor industry." "Intel is in a difficult situation, and when he accepted this job, they were in a difficult position, which is part of the reason why he accepted it. And if he turns losses into profits, it will be a difficult process
Bernstein analyst Stacy Rasgon believes that Trump's dissatisfaction may stem from Chen Liwu's failure to establish a personal relationship with him, as well as Trump's possible dissatisfaction with Intel's cuts in capital expenditures and wavering in cutting-edge processor manufacturing.
Intel is a significant beneficiary of the Chips and Science Act funding, having received nearly $8 billion in grants. However, the Trump administration has been trying to use these grants to encourage businesses to commit to more investment.
In addition, Intel announced this year that it will postpone the production of its chip manufacturing plant in Ohio until at least the 2030s, which may contradict the government's goal of expanding semiconductor production capacity in the United States. Trump's close ally, Ohio Republican Senator Bernie Moreno, also called for Chen Liwu to resign.
Chen Liwu is not the first corporate leader to resign after a conflict with Trump. One important reason for Chen Liwu's employment is his profound industry expertise and network. If he resigns, it is currently unclear who can replace him.