In a surprising turn of events, US President Donald Trump praised Intel Corp CEO Lip-Bu Tan just days after publicly demanding his resignation.
This shift came after Lip-Bu Tan met with the President at the White House on Monday to clear up what the CEO called “misinformation” about his track record, Bloomberg reported.
The American chip icon’s shares jumped more than 2% in extended trading following Trump’s positive remarks about the meeting on Monday, reported the news agency.
Why did Trump call for Lip-Bu Tan’s resignation?
Last Thursday, Trump accused Tan of having a conflict of interest due to his ties to Chinese firms. In a post on Truth Social, Trump said Tan should immediately step down as chief of the American chipmaker, describing him as “highly CONFLICTED.”
Trump’s attack came after Republican Senator Tom Cotton wrote to Intel’s board questioning Tan’s ties to China. Cotton’s letter highlighted Tan’s investments in Chinese semiconductor companies and other such firms with connections to the country’s military, the news report said.
The post had a significant impact on Intel’s stock, which fell 3.1% on August 7, the day of President Trump’s initial remarks.
Meeting at the White House
Following the controversy, Tan, who said he had the full backing of Intel’s board, reached out to the White House, writing to his employees on Thursday that he was “engaging with the administration to address the matters that have been raised and ensure they have the facts.”
After the meeting, Trump posted a positive message on social media, saying, “The meeting was a very interesting one.”
He called Tan’s “success and rise…an amazing story,” and announced that his Cabinet members would continue to meet with Tan and bring suggestions to him in the next week.
Intel, in a statement, said Tan and Trump had discussed the company’s “commitment to strengthening U.S. technology and manufacturing leadership,” casting the talks as “candid and constructive.”
The company added, “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.”