Intel’s stock tumbled nearly 4% after a U.S. president demanded the immediate resignation of its CEO, citing conflicts of interest tied to Chinese investments. The newly appointed leader, who took charge in March, faces scrutiny over $200 million in funding directed to Chinese tech firms—some with alleged military ties. The unprecedented intervention has rattled investors, compounding existing challenges for the chipmaker, which recently secured $8 billion in federal subsidies to revive domestic semiconductor production.
Political Storm Overshadows Recovery Efforts
The CEO’s prior leadership at a firm penalized for violating export controls to China has intensified skepticism. Critics argue the ties jeopardize Intel’s role as a steward of taxpayer funds, while analysts warn political interference could derail its turnaround. The company, already struggling with a 60% stock decline this year and delayed factory projects, now grapples with geopolitical fallout. Meanwhile, rivals dominate in AI and data-center chips, leaving Intel’s market position increasingly precarious.
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