Trump demand's Intel CEO's resignation
- Thread starter siliconbruh999
- Start date
This is true - and he talks about this in detail (with different words) in his "Art of the Deal" book. His experience has taught him to use posturing as a negotiating tactic.. (for better or worse).
what is he negotiating exactly?
Regardless of what is actual reality right now (LBT has conflicts, LBT has no conflicts, Trump bringing attention to this right or wrong, etc.) -- Intel really doesn't need this distraction.
The Board has another opportunity here to either use buckets or sink the ship faster..
The Board has another opportunity here to either use buckets or sink the ship faster..
I honestly have no idea in this case. Pure guessing -
Maybe the Intel board or LBT didn't want to go with some TSMC-hybrid deal that keeps coming as rumor, and the Trump administration wants that to happen.. So this is a way to try to force action.
Maybe a campaign donor wants to run Intel or has vested interests around Intel.
We may not know for a little while.. There's just so much going on in the country and the world right now -- something had to trigger this attack on LBT/Intel that isn't obvious. Though I guess it could be as simple as a DoD or contractor supplier assessment for Intel wasn't rosy and that got escalated all the way up..
I b
i don’t think leaving in such a circumstances is graceful
The same could be said for Donald Trump… But he wouldn’t acknowledge his own conflicts of interest if they bit him in the @ss.
Once you're in Congress or The White house.. COI rules don't apply to you anymore
But the force (and hypocrisy) is especially strong in this one (and Tom Cotton as we have seen)Once you're in Congress or The White house.. COI rules don't apply to you anymore
coldsolder215
Active member
It's so cool to see how every effort to stem American decline eventually blows back with a swing of the 4 year pendulum and ultimately hastens the process. But the good news is I finally found something AI is good at: synthesizing Trump bits: “Intel is a total disaster right now—very sad! We gave them billions, billions of taxpayer dollars, and what do we get? A CEO who’s compromised, totally compromised by China. It’s a disgrace. Lip-Bu Tan has deep ties to the Chinese military—can you believe it? CHINA! He must resign immediately. No question about it. Intel needs strong leadership, not someone who’s working with our enemies. We’re not going to let American innovation be sold out. Not on my watch!”
Lip-Bu Tan is known all over the world. He was on the Intel board for a year and a half before becoming CEO so the Intel Board knows him well. The CEO offer letter specifically allowed Lip-Bu to continue his work with Walden International. Lip-Bu founded Walden 38 years ago and it is no secret as to what they do. Walden has invested in hundreds of companies around the world, the majority of which are in the United States.
Personally I think this China phobic behavior US politicians are engaged in is detrimental to not just the semiconductor industry but to the world. It reminds me of when I was growing up and Russia was our enemy. It seems politicians must put fear into citizens in order to get elected and stay in office.
What happens next? It will be interesting to see if the semiconductor industry allows political interference in choosing our leadership. Hopefully that is not the case because if it is we are in for a very bumpy ride. Intel has no cause to fire Lip-Bu Tan so if there is a separation it will be on Lip-Bu's terms. I for one hope that is not the case.
Or if you fake like you lose, then box the clock (willingly comply verbally, but don't execute on Trump's requirements by delaying and making excuses), you have a deal.
Last time round from 2019 deal :
China bought none of the extra $200 billion of US exports in Trump's trade deal
I mean USG allowing H20 chips to be sold to China. I’m sure one could construe that as comprising US national security also if one wishes to
Industry Reactions:
ANSHEL SAG, PRINCIPAL ANALYST AT MOOR INSIGHTS & STRATEGY
"I believe that POTUS shouldn't be calling for any CEO to be stepping down, especially not one who just took the job this year. I think this all boils down to Lip-Bu's past involvement and investment in Chinese semiconductors, which is also what makes him so valuable as CEO."
"He's more aware than most people on earth of China's capabilities and should be an asset to the U.S. and Intel."
DAVID WAGNER, HEAD OF EQUITY AND PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS, AN INTEL SHAREHOLDER
"While I can understand that many investors likely believe that President Trump has his hand in too many cookie jars, it's just another signal that he's very serious about trying to bring business back to the U.S. He has momentum from the Apple deal and now hoping that a few more businesses fall into place."
RYUTA MAKINO, RESEARCH ANALYST AT GABELLI FUNDS, AN INTEL INVESTOR
"I think Trump is mostly attacking Lip-Bu because he wanted to stop the manufacturing business if Intel 14A doesn't work out with external customers. More speculation whether Trump is making some deals with TSMC to do something with Intel. I think it's very much a political move."
BLAKE ANDERSON, ASSOCIATE PORTFOLIO MANAGER AT CARSON GROUP
"Investors remaining focused on issues like these hint that the company's manufacturing turnaround, and long-term viability, may be dependent on factors external to the company and thus increase long-term uncertainty."
SHIRAZ AHMED, FOUNDER AND CEO AT SARTORIAL WEALTH
"It's not surprising. I mean we're seeing the administration step in and point fingers at private or corporate CEOs. It's not the first time he's done it, it's likely not the last time he'll do it."
PHIL BLANCATO, CEO OF LADENBURG THALMANN ASSET MANAGEMENT
"It would be setting a very unfortunate precedent. You don't want American presidents dictating who runs companies, but certainly his opinion has merit and weight. The board of Intel will have to determine if that's something they would consider in their evaluation."
"But this CEO is fairly new. So on one hand, I don't think the U.S. president has the ability to do that. I'm not sure that that's a good idea for any political official."
"But certainly, when you look at where the company stands today, it hasn't benefited greatly over the last few years. And I think it's more than just a CEO issue here. It's the company's need for real, radical change."
DANIEL NENNI, FOUNDER OF SEMIWIKI.COM
Lip-Bu Tan is known all over the world. He was on the Intel Board of Directors before becoming CEO so the Intel Board certainly knows him. The CEO offer letter specifically allowed Lip-Bu to continue his work with Walden International. Lip-Bu founded Walden 38 years ago and it is no secret as to what they do. Walden has invested in hundreds of companies around the world, and yes some of them are in China, but the majority are here in the United States.
What happens next? It will be interesting to see if the semiconductor industry allows political interference in choosing our leadership. Hopefully that is not the case because if it is we are in for a very bumpy ride. Intel has no cause to remove Lip-Bu Tan so if there is a separation it will be on Lip-Bu's terms. I for one hope that is not the case.
ANSHEL SAG, PRINCIPAL ANALYST AT MOOR INSIGHTS & STRATEGY
"I believe that POTUS shouldn't be calling for any CEO to be stepping down, especially not one who just took the job this year. I think this all boils down to Lip-Bu's past involvement and investment in Chinese semiconductors, which is also what makes him so valuable as CEO."
"He's more aware than most people on earth of China's capabilities and should be an asset to the U.S. and Intel."
DAVID WAGNER, HEAD OF EQUITY AND PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS, AN INTEL SHAREHOLDER
"While I can understand that many investors likely believe that President Trump has his hand in too many cookie jars, it's just another signal that he's very serious about trying to bring business back to the U.S. He has momentum from the Apple deal and now hoping that a few more businesses fall into place."
RYUTA MAKINO, RESEARCH ANALYST AT GABELLI FUNDS, AN INTEL INVESTOR
"I think Trump is mostly attacking Lip-Bu because he wanted to stop the manufacturing business if Intel 14A doesn't work out with external customers. More speculation whether Trump is making some deals with TSMC to do something with Intel. I think it's very much a political move."
BLAKE ANDERSON, ASSOCIATE PORTFOLIO MANAGER AT CARSON GROUP
"Investors remaining focused on issues like these hint that the company's manufacturing turnaround, and long-term viability, may be dependent on factors external to the company and thus increase long-term uncertainty."
SHIRAZ AHMED, FOUNDER AND CEO AT SARTORIAL WEALTH
"It's not surprising. I mean we're seeing the administration step in and point fingers at private or corporate CEOs. It's not the first time he's done it, it's likely not the last time he'll do it."
PHIL BLANCATO, CEO OF LADENBURG THALMANN ASSET MANAGEMENT
"It would be setting a very unfortunate precedent. You don't want American presidents dictating who runs companies, but certainly his opinion has merit and weight. The board of Intel will have to determine if that's something they would consider in their evaluation."
"But this CEO is fairly new. So on one hand, I don't think the U.S. president has the ability to do that. I'm not sure that that's a good idea for any political official."
"But certainly, when you look at where the company stands today, it hasn't benefited greatly over the last few years. And I think it's more than just a CEO issue here. It's the company's need for real, radical change."
DANIEL NENNI, FOUNDER OF SEMIWIKI.COM
Lip-Bu Tan is known all over the world. He was on the Intel Board of Directors before becoming CEO so the Intel Board certainly knows him. The CEO offer letter specifically allowed Lip-Bu to continue his work with Walden International. Lip-Bu founded Walden 38 years ago and it is no secret as to what they do. Walden has invested in hundreds of companies around the world, and yes some of them are in China, but the majority are here in the United States.
What happens next? It will be interesting to see if the semiconductor industry allows political interference in choosing our leadership. Hopefully that is not the case because if it is we are in for a very bumpy ride. Intel has no cause to remove Lip-Bu Tan so if there is a separation it will be on Lip-Bu's terms. I for one hope that is not the case.
Nice touch, appending your own quote as if it were in the original article.
Might result in a small hedge for Trump, but at great cost to Intel. (due to the resulting uncertainty that now surrounds them)
High end Xeon and "supercomputer grade" chips were always banned for sale to China by US, yet we don't see proper enforcement there. Except not selling them directly to supercomputer clients, Intel never did much to prevent regular imports. You can find high core count Xeons routinely marketed in China.