U.S. President Donald Trump called for the immediate resignation of Intel Chief Executive Officer Lip-Bu Tan on Thursday, saying the semiconductor veteran is “highly conflicted” because of past business ties to Chinese technology firms. Trump’s remarks, delivered in an early-morning social-media post, follow heightened scrutiny in Washington of foreign affiliations at companies receiving federal support. Intel shares fell as much as 5% in pre-market trading and were still off roughly 3% by midday, erasing part of the stock’s recent recovery. The chipmaker has been allotted almost $8 billion in subsidies under the 2022 CHIPS and Science Act, a commitment that has put its leadership and strategy under close political watch. Pressure on Tan escalated after Republican Senator Tom Cotton sent Intel’s board a letter questioning the executive’s investments in hundreds of Chinese startups and highlighting a July plea deal in which Cadence Design Systems—run by Tan until 2021—agreed to pay $140 million for violating U.S. export controls. Reuters previously reported that several of Tan’s past investments involved companies linked to China’s military research programs. In a memo to employees, Tan said “misinformation” is circulating about his record, adding that he has always operated within the highest legal and ethical standards. He said Intel is “engaging with the Administration to ensure it has the facts” and noted that the board of directors is fully supportive of his turnaround plan. Analysts warned that the political confrontation could sidetrack Intel’s efforts to cut costs, streamline its product portfolio and decide the future of its manufacturing operations—debates that have already exposed rifts between Tan and some directors. Investors said prolonged uncertainty over the CEO’s status risks further volatility for a company trying to reclaim technological leadership from Asian rivals.