Intel CEO Lip-Bu Tan reportedly to pitch proposals to Trump next week amid key challenges

After calling Intel CEO Lip-Bu Tan “highly conflicted”, and demanding his immediate resignation last week over alleged ties to Chinese firms, U.S. President Donald Trump now says Tan—along with his cabinet members—will present new proposals to him next week, according to Reuters.

Trump, who met with Tan on Monday, along with Commerce Secretary, Howard Lutnick, and Treasury Secretary, Scott Bessent, described the discussion as “very interesting” and lauded the CEO’s career as “an amazing story” in a Truth Social post.

On the other hand, Intel said the meeting was a candid and constructive exchange on the company’s commitment to bolstering U.S. technology and manufacturing leadership, adding that it looks forward to working closely with Trump and his administration to restore the chipmaker’s strength.

Reuters reported in April that Tan, a veteran investor and chairman of Walden International, has long-standing ties to China, having invested over $200 million in Chinese chip and manufacturing firms from 2012 to 2024. He notably backed SMIC in 2001, served on its board until 2018, and exited his stake in 2021, as per Reuters.

What could be in the “suggestions” Intel will deliver to Trump in the coming days? Here’s a look at the possibilities—and the pressing challenges Tan faces at the helm of Intel.

Intel’s proposals and funding challenges
The Wall Street Journal suggests that during their meeting, the focus of Tan might be pitching government–Intel partnerships, aiming to win Trump’s backing by pledging loyalty to the U.S. and casting Intel’s manufacturing strength as vital to national security.

Judging from Trump’s post, 9to5mac suggests that his words do not mean Tan is in the clear. Instead, this could signal the administration may seek an oversight deal with Intel—similar to those eyed for NVIDIA and AMD—to ensure neither Tan nor the company tilts toward China.

Another Wccftech report, citing Intel’s former CEO Craig Barrett’s opinion column on Fortune, admits Intel is in urgent need of funding—at least $40 billion to match TSMC’s capacity, a sum exceeding CHIPS Act grants. Instead of relying solely on government aid, Barrett argued the administration should craft a plan for companies like NVIDIA and Apple to invest in Intel’s cutting-edge processes, giving the chipmaker a much-needed boost, as per the report.

Interesting enough, the meeting comes on the heels of Apple’s $600 billion investment pledge and NVIDIA and AMD’s deal to allocate 15% of China chip sales to the government. Meanwhile, Intel struggles to deliver on its $100 billion U.S. investment promise announced in March 2024, making Barrett’s viewpoint seem far more grounded in reality.

18A faces further delays?
On the other hand, one of Intel’s biggest near-term hurdle is the 18A process, originally set for mass production in late 2025. Reuters reported Intel started risk production of Panther Lake with 18A in April, but yields are still critically low—only about 10% this summer, up slightly from 5% late last year. According to the Korea Economic Daily, rumors say these low yields have pushed full-scale 18A production back to 2026.

However, as Wccftech points out, while the delay may seem disappointing, it actually aligns with Team Blue’s plan to ramp up Panther Lake for high-volume production in early 2026—not Q4 2025.

The report highlights CEO Lip-Bu Tan’s cautious stance on moving forward without stable yields. Though Intel has historically accepted low yields during mass production—leading to losses and weaker products—if the upcoming 18A process can ensure stable, higher yields, it should significantly boost Intel’s competitiveness.

Source: TrendForce, Taiwan.