How Intel’s CEO Became a Political Liability

Summary

Summary of "How Intel’s CEO Became a Political Liability" – The Journal

Episode Release Date: August 13, 2025
Hosts: Ryan Knutson and Jessica Mendoza
Produced by: The Wall Street Journal & Spotify Studios

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1. Introduction & Context

In the August 13, 2025 episode of The Journal, hosts Annie Minoff and Stu Wu delve into the tumultuous situation surrounding Intel’s CEO, Lip Bhutan, and how he has become a focal point in the broader US-China tech rivalry. The episode explores the intersection of business leadership, national security, and political maneuvering, painting a comprehensive picture of the challenges faced by one of America's key technology companies.

2. The Resignation Call and Political Intervention

The episode opens with the startling news that Intel’s CEO, Lip Bhutan, has been urged to resign. Unlike typical corporate governance issues, this pressure is coming directly from the highest levels of government:

• Annie Minoff introduces the scenario: “Last week, the CEO of Intel...was asked to resign. But it wasn't Intel's board calling for him to step down. Intel has now found itself in the crosshairs of President Donald Trump” (00:05).

• Stu Wu highlights the gravity of the situation: “President called for the company's CEO, Lip Bhutan, to resign, calling him, 'highly conflicted due to his ties to Chinese firms,'” (00:26).

This unprecedented move by President Trump marks a significant moment where the executive branch directly intervenes in the leadership of a private corporation, a move deemed "unprecedented in modern US Presidency" by business professors consulted by the hosts (01:21).

3. Lip Bhutan: A Profile of Influence and Controversy

Lip Bhutan, often referred to by his peers as "Mr. Chip," brings a complex background to his role at Intel:

• Annie Minoff provides his origins: “You may have never heard of Lip Bhutan, but in the tech world, he's a big deal. Thanh is 65 with connections all over the world. He's a naturalized US citizen of Chinese ancestry who was born in Malaysia and raised in Singapore” (01:39).

• Stu Wu emphasizes his early involvement in China’s tech sector: “He is one of the first people to introduce venture capital to China in 1993” (04:12).

Bhutan’s venture capital firm, Walden International, played a pivotal role in fostering Chinese tech companies like Sina and the major chip manufacturer SMIC (Semiconductor Manufacturing International Corporation), which earned him the nickname "Mr. Chip" (04:33; 05:12).

4. Intel’s Struggles and National Significance

Under Bhutan’s leadership, Intel faces significant challenges:

• Stu Wu recounts Intel’s historical dominance: “When I was a kid...they were doing great until about two decades ago” (05:41).

• Annie Minoff explains the shift in the semiconductor industry: Intel’s decision to remain vertically integrated—designing and manufacturing its own chips—led to inefficiencies and missed opportunities, especially in areas like AI where competitors thrived (06:06; 06:31).

• The company’s financial woes are underscored by a staggering loss of $13 billion in its chip business last year, coupled with a significant decline in stock value (07:06).

Given the strategic importance of semiconductor manufacturing to national security, Intel’s struggles have broader implications:

• Stu Wu notes: “The US Government is counting on Intel to lead a revolution in American chip making” (01:39).

• Annie Minoff highlights government investments: “The US Government has given billions of dollars in subsidies to Intel to grow domestic chip manufacturing” (08:07).

5. Political Pressure and Corporate Governance Conflicts

The pressure on Bhutan intensifies due to political and internal corporate conflicts:

• Senator Tom Cotton, a vocal China hawk, sent a letter questioning Bhutan’s ties to Chinese firms, sparking renewed scrutiny (00:47).

• The underlying tension is compounded by conflicts with Intel’s board, who are reportedly at odds with Bhutan’s strategic direction. While Bhutan aims to strengthen both design and manufacturing capabilities, board members, led by Chairman Tan, advocate for divesting the highly loss-making chip manufacturing segment (10:12; 10:22).

This internal discord is juxtaposed with external political pressures, creating a precarious situation for Intel’s leadership.

6. The Cadence Design Systems Controversy

A pivotal moment that likely intensified the scrutiny on Bhutan was the settlement between Cadence Design Systems—a company he once led—and the Department of Justice:

• Annie Minoff reveals: “Cadence...pled guilty to illegally selling prohibited technology to a Chinese military university” (11:58).

• Stu Wu discusses the implications: “It's unclear what Thanh exactly knew about this illegal activity, if he knew anything about it at all” (12:08).

This association raised questions about Bhutan’s previous role and potential ongoing ties to Chinese tech enterprises, amplifying Senator Cotton’s concerns about his influence over Chinese competitors to Intel (12:54).

7. Intel’s Defense and Attempt to Reconcile

Despite the mounting pressure, Intel stands by Bhutan:

• Annie Minoff cites Intel’s statement: “Intel and Thanh are making investments to align with Trump's America first agenda and are deeply committed to advancing US national and economic security interests” (13:24).

• In an effort to regain trust, Bhutan visited the White House, emphasizing his long-standing commitment to the United States and positioning himself as a patriotic leader (13:52).

However, President Trump maintained his stance on Bhutan’s resignation, although he praised Bhutan’s rise as an “amazing story” and mentioned ongoing conversations with Intel’s leadership, resulting in a modest rebound of Intel’s stock (14:13; 14:35).

8. Broader Implications for US-China Tech Rivalry

The episode concludes with a discussion on the escalating US-China tech conflict:

• Stu Wu draws parallels between US government interventions and China’s assertive tech policies under Xi Jinping: “It seems like it's happening in the US now, too” (15:02).

• The ongoing "tech cold war" highlights the critical role of semiconductor technology in national security and global power dynamics, with Huawei and Nvidia previously targeted by US policies (15:08).

9. Conclusion

The episode of The Journal effectively captures the intricate web of corporate strategy, political influence, and international rivalry that has placed Intel’s CEO, Lip Bhutan, under intense scrutiny. As Intel grapples with internal dissent and external political pressures, the situation underscores the broader strategic importance of semiconductor manufacturing in the US-China power struggle. The unresolved tensions hint at an uncertain future for Intel and reflect the escalating complexities of global technology governance.

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Notable Quotes

• President Trump's Call for Resignation: "Highly conflicted due to his ties to Chinese firms." (00:26)

• Senator Tom Cotton on Bhutan’s Influence: "HoRice, he reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced manufacturing and chip firms." (12:54)

• Lip Bhutan's Commitment: "I want to be an impact player... I can help US investors go to Asia and help Asian companies go global." (03:08)

• Stu Wu on US-China Tech Rivalry: "The US and China are in this superpower conflict, and technology and computer chips specifically are very important to this battle." (15:08)

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Timestamps

• 00:05 – Introduction of CEO resignation pressure
• 00:26 – Trump’s direct call for resignation
• 00:47 – Senator Tom Cotton’s letter
• 01:21 – Unprecedented presidential intervention
• 01:39 – Importance of Intel to US
• 03:08 – Bhutan’s venture capital strategy
• 04:12 – Early involvement in China’s VC
• 05:12 – Influence in Chinese chip industry
• 06:31 – Intel’s vertical integration issues
• 07:06 – Intel’s financial losses
• 08:07 – US subsidies for Intel
• 10:12 – Board conflicts with Bhutan’s strategy
• 11:58 – Cadence settlement with DOJ
• 12:54 – Senator Cotton’s allegations
• 13:24 – Intel’s defense of Bhutan
• 14:35 – Stock reaction post White House meeting
• 15:02 – Comparison to China’s tech policies
• 15:08 – Importance of chips in US-China conflict

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For more insights and detailed reporting, listeners are encouraged to tune into "The Journal" co-produced by Spotify and The Wall Street Journal.

Transcript

[Annie Minoff]

Last week, the CEO of Intel, one of America's most storied tech companies, was asked to resign. But it wasn't Intel's board calling for him to step down. Intel has now found itself in the crosshairs of President Donald Trump after the.

[Stu Wu]

President called for the company's CEO, Lip Bhutan, to resign, calling him, quote, highly.

[Annie Minoff]

Conflicted due to his ties to Chinese firms. Tan, Intel's CEO, has only been in the job for about five months. The focus on him seems to have started last week. That's when Republican Senator Tom Cotton, a longtime China hawk, posted a letter on X. It was addressed to Intel's board.

[Stu Wu]

He sent a letter to intel saying, hey, I have some questions about your CEO.

[Annie Minoff]

That's our colleague Stu Wu.

[Stu Wu]

Specifically, this guy runs America's most prominent chip company. But he seems to have a lot of ties to the most important chip companies in China. And we want to know, have you asked him about that? Have you looked into this?

[Annie Minoff]

Trump's truth. Social post calling for Tan's resignation followed just a day later. How unusual is that? The president kind of coming out and saying, hey, I think the CEO of this company should step down.

[Stu Wu]

My colleagues and I have been talking to some business professors and they're saying it's unprecedented in modern US Presidency for the president to weigh in on the CEO of a private American corporation.

[Annie Minoff]

Trump's demand comes at a time when the US Government is counting on intel to lead a revolution in American chip making.

[Stu Wu]

He is implying that there's a trust problem with the head of America's most important chip manufacturer. Can we trust this guy to lead America's most important chip company? That's the issue right now.

[Annie Minoff]

Welcome to the Journal, our show about money, business and power. I'm Annie Minoff. It's Wednesday, August 13th. Coming up on the show, why Intel's CEO became a target for President Trump before Trump truthed. You may have never heard of Lip Bhutan, but in the tech world, he's a big deal. Thanh is 65 with connections all over the world. He's a naturalized US citizen of Chinese ancestry who was born in Malaysia and raised in Singapore.

[Stu Wu]

To understand Lip Bhutan, I think you have to understand Singapore, which is where I'm talking to you from right now. And anybody who's been here knows it's a really unique place. It's a former British colony, it's English speaking, but most of its people, like Thanh, are of Chinese descent. So it's kind of like east meets West.

[Annie Minoff]

Thanh moved to the US in the 1980s and his global background served him well as he got his business career off the ground.

[Stu Wu]

I watched the speech with him and he said, well, I wanted to ask myself, what kind of impact can I make? What can I bring to the table?

[Lip Bhutan]

And I said, I want to be an impact player and what can I offer? And I come from Asia. And I said, okay, the best way I can do is to help US Portfolio to go to Asia.

[Stu Wu]

And he concluded, you know, with my background from Asia, but being in America, I can bring US Investors to Asia. And on the flip side, I can help Asian companies go global. And that's where his story begins.

[Annie Minoff]

Tan would connect American investors with up and coming Asian companies. His vehicle for doing that would be his venture capital firm, Walden International.

[Stu Wu]

So he starts his venture capital firm in the 1980s, and then in the 1990s. That's when China is opening up. It's trying to reform from a communist country to a more capitalist one.

[Annie Minoff]

So he's really early to this.

[Stu Wu]

He is early yet. In fact, in 1993, the Chinese government invites Tan to go to China and introduce the idea of venture capital to China. He's like one of the first people.

[Annie Minoff]

There, just like, hey, guys, here's what this is. Let me walk you through it.

[Stu Wu]

Exactly. And this is a time when the US Is really open to the idea. President Clinton's in charge of the US and he's thinking, okay, let's help China move along and hopefully become a more open, more capitalist society. So he's there in the 90s, and because he's there so early, he gets to see everything from the ground up.

[Annie Minoff]

Through Walden, Thanh got to invest in a lot of Chinese tech companies like Sina, which owns the Chinese social media site Weibo. And Thanh also got involved in funneling money and know how to a burgeoning new industry in China, computer chips. Thanh became so influential in the chip world, people started calling him Mr. Chip.

[Stu Wu]

He got that name from his peers because specifically of what he did in China, he provided invaluable mentorship and just business advice as well as money to these chip startups that eventually became some of the most important in China. They include the company that's the biggest physical manufacturer of chips in China.

[Annie Minoff]

And what is that company? Have I ever heard of it?

[Stu Wu]

You probably haven't heard of it. It's not really big outside China, but it's one of the biggest in the world. It's called Snick. It's. And it does the hard and complicated job of building these big Factories that physically manufacture computer chips.

[Annie Minoff]

All that experience made Thanh attractive to intel, which at the end of last year, was looking for a new leader. The company had fallen on hard times. Intel needed someone who could return the company to its former glory when its chips were the gold standard for computer processing.

[Stu Wu]

When I was a kid in the 90s and 2000s, I remember going to Best Buy and looking at all the computers I wanted to buy. And they all had that sticker on them, right?

[Annie Minoff]

Intel inside.

[Stu Wu]

Intel inside. Exactly. So they were doing great until about two decades ago. And to understand what happened there, you kind of have to understand how the chip industry evolved and how intel didn't.

[Annie Minoff]

Intel built its reputation as a company that both designed and manufactured its own computer chips. But as chips got more advanced, companies started to specialize. For example, a company like Nvidia would design a chip and then another company would make that chip. Right now, the two most prominent chip makers are Samsung and tsmc, our Taiwan semiconductor manufacturing company. But intel kept doing both.

[Stu Wu]

So intel is still vertically integrated. They still design the chip and they still manufacture the chip. And as a result, they kind of got inefficient at doing both. So over the past two decades, they missed out on making great chips for smart, and they missed out on making chips for AI. They just made, like, computer chips. And that's the reason it's been struggling a lot. I mean, last year it lost $13 billion in its business of making chips. Intel shares plunging this morning, on track for its largest decline since September of 2000.

[Annie Minoff]

But Intel's downward spiral hasn't just been bad for the company's shareholders. It's also been bad for the US Government, which needs Intel. That's because the company still manufactures chips in the US and increasingly, having a secure domestic supply of chips is seen as a matter of national security.

[Stu Wu]

Artificial intelligence is used to simulate nuclear weapons, how to make a fighter jet, how to make a missile, how to spy. And what powers artificial intelligence? Those are cutting edge computer chips. And the problem now is that most of the world's cutting edge chips are physically manufactured in Taiwan as well as South Korea. China's threatening to take over Taiwan by force, and South Korea is still technically at war with North Korea. So the US Government is thinking, oh, if something happens to those two countries, we're not going to be able to make the best computer chips. We're not going to be able to have the best artificial intelligence. We might not be able to win a war.

[Annie Minoff]

So at the same time that this company is struggling in some ways, it's more important to the US than ever.

[Stu Wu]

Exactly. Intel's not doing great financially. It's losing a lot of money. But it's also, it could be America's best hope to having chips made in America in case something happens to our trading partners.

[Annie Minoff]

With that in mind, the US Government has given billions of dollars in subsidies to intel to grow domestic chip manufacturing. In 2022, intel announced it would build a new chip making plant in Ohio. All of this would be part of the challenge for Intel's new CEO. And what was the reaction when intel brought in Mr. Chip Liputin?

[Stu Wu]

Oh, it was like. It was like a public holiday in Santa Clara. That's where intel is based. Their stock rose at 13%. I mean, they found the guy, they found Mr. Chip, and they thought, well, if anybody can save the company, it's Liputin.

[Annie Minoff]

But so far, turning intel around has been an uphill battle, and not just because of the President's post. That's next.

[Lip Bhutan]

I'm excited to lead intel at this defining moment in our history.

[Annie Minoff]

Lip Bhutan started as CEO of Intel in March, and he had a lot of work to do.

[Lip Bhutan]

I also fully recognize it won't be easy. It had been a tough period for quite a long time for Intel. We fell behind on innovation.

[Stu Wu]

He had this idea that, okay, this is not great. We both design chips and we manufacture chips, but at the same time, the US Government is banking on us and they've literally given us money, subsidies to build factories, make chips in America. We should stay the course and keep on doing that.

[Annie Minoff]

Tan's plan was to get better at both parts of Intel's chip business, designing and manufacturing, and to raise money to support that goal. But not everyone on Intel's board was behind.

[Stu Wu]

Tan, the chairman of intel has other ideas and he thought, oh, man, making chips is losing so much money. Let's get out of that business.

[Annie Minoff]

According to the Journal's reporting, Intel's board has stymied Ton's efforts to raise money from Wall street investment banks. Board members also slow walked a potential deal that Ton had supported to acquire an AI company to help intel compete with rivals like Nvidia. In a statement, intel said its board and management team are aligned on the company's strategy and quote, regularly and actively engage in thorough discussions and deliberations.

[Stu Wu]

Can you imagine? He just got hired as CEO of Intel five months ago. And on one hand, his boss, the chairman of intel, is thinking, I don't like your strategy. We should get rid of this really big part of Our business. And then on the other hand, the boss of America is saying, intel needs to get rid of its CEO. I can't imagine what that's like.

[Annie Minoff]

Turning around intel was challenging enough. But then came Senator Tom Cotton's letter raising questions about Thanh and Trump's demand that he resign. It's not clear what put Tan on Cotton and Trump's radar, but just a week before Cotten and Trump's social media posts, there was an announcement about a company that Thanh once led. That company is called Cadence Design Systems. It designs hardware and software for chip makers. Tan was its CEO for 12 years.

[Stu Wu]

Cadence came out and said, we just reached a settlement with the Justice Department. We pleaded guilty to illegally selling prohibited technology to a Chinese military university. And the Justice Department said that this university was known to simulate nuclear explosions and other military activities.

[Annie Minoff]

According to the Justice Department, Cadence had been illegally helping an American adversary, and the company had done it while Thanh was at the helm.

[Stu Wu]

These legal activities happened during his tenure as CEO of Cadence. So there's still some questions about what Thanh exactly knew about this illegal activity, if he knew anything about it at all.

[Annie Minoff]

Cadence agreed to pay the Justice Department $140 million. Its current CEO said that it was in the best interest of all parties to reach a settlement. Senator Cotton raised the Cadence issue in his letter to intel, but he also pointed out something Thanh's long history of investing in Chinese chip companies that could be considered Intel's competition. Cotten wrote that Tan, quote, reportedly controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced manufacturing and chip firms. What do we know about that? Is that true?

[Stu Wu]

We know that Starting in the 90s, he did invest in a lot of important Chinese chip companies. He served on the board for 18 years of one of the most important. It's called Semiconductor Manufacturing International Corporation.

[Annie Minoff]

Right? Smic.

[Stu Wu]

Yeah. Which the US Considers kind of a threat. Now, when he became CEO of the last company, Cadence, he did give up a lot of day to day control of his venture firm. So it's unclear how closely involved he is today with his investments from his venture capital firm.

[Annie Minoff]

Despite these accusations, intel has stood by Ton. In a statement, intel said Thanh and the company are making investments to align with Trump's America first agenda and are, quote, deeply committed to advancing US national and economic security interests. On Monday, Thanh visited the White House to speak with the President. What do we know about what Tan was hoping to accomplish as he went into that meeting?

[Stu Wu]

What Thanh said beforehand that he wanted to Tell the Trump administration that basically, you can trust me. He made a clear point of saying, The US has been my home for 40 years and I love it. So he's trying to show that he's a patriotic American and that the Trump administration can trust him to lead one of America's most important tech companies.

[Annie Minoff]

After the meeting, it wasn't yet clear if Tan had succeeded. In a post on Truth Social, Trump didn't rescind his call for Tan to resign, but he did call Thanh's success and rise an amazing story and said that Tan would continue conversations with the president's cabinet. Intel's stock jumped 2% after that post.

[Stu Wu]

One thing I was thinking about as I was just processing all this is that the US Is now becoming more like China in a couple ways. It's literally giving subsidies to companies like Intel. And the second thing is that, is that the president, President Trump is becoming more and more assertive with its companies. This is what Xi Jinping, the leader of China, has done in China. He's sidelined Chinese tech companies, CEOs, that he doesn't like or don't get along with the program. And it seems like it's happening in the US now, too.

[Annie Minoff]

What does this whole incident say to you about kind of where we are with the US China tech rivalry?

[Stu Wu]

The US And China are in this superpower conflict, and it shows that technology and computer chips specifically are very important to this battle. The US And China have been in this tech cold war for about eight years now. You know, every year or two, there's been something unprecedented. You know, the US Trying to kill a Chinese tech company called Huawei because they thought they were spying and they also didn't like the progress it was making with its own computer chips. The US Banning exports of chips to China from Nvidia other places. Right. So this is just the latest twists and turns. So I can't even predict what's going to happen next. You know, we're running out of superlatives to discuss what's happening with technology and the US China relationship.

[Annie Minoff]

That's all for today. Wednesday, August 13 the Journal is a co production of Spotify and the Wall Street Journal. Additional reporting in this episode by Lauren Thomas, Amrith Ramkumar, Yang Jie and Gareth Vipers. Thanks for listening. See you tomorrow.