Intel CEO Faces Political Pressure Amid US-China Semiconductor Tensions

In 2025, the U.S. semiconductor industry became a focal point of geopolitical tension and political intervention under President Trump's administration. Intel's CEO Lip-Bu Tan faced public demands for resignation from Trump, due to his prior investments in Chinese companies, sparking market volatility and highlighting the risks of political overreach in corporate governance. Despite initial criticism, Trump later hosted Tan for a conciliatory White House meeting, illustrating erratic political engagement with tech leadership amid national security concerns. Concurrently, the Trump administration brokered a controversial deal with Nvidia and AMD requiring a 15% revenue share on chip sales to China, effectively imposing a government levy that raises constitutional and investor concerns about the blurring line between national security and economic exploitation. These developments coincide with the CHIPS and Science Act's incentives for domestic semiconductor manufacturing, yet Trump's push for tariffs and restructuring at Intel adds strategic uncertainty and risks fragmenting the company's integrated operations. Overall, the semiconductor sector now faces unprecedented political scrutiny, regulatory complexity, and market volatility as investors must navigate an increasingly politicized landscape where executive leadership and corporate strategy are deeply entangled with U.S. geopolitical priorities.