Transformation routes are different! Except for Trump s sniping, Chen Liwu and Intel s board of directors have long been in a relationship

US President Donald Trump posted on the social platform Truth Social on the 7th that Intel executive director Chen Liwu had high conflicts of interests and must immediately resign, no other way. According to exclusive reports on the "Walker Street Journal", before Trump intervened, Chen Liwu had a long-term relationship with some board members.

People familiar with the matter revealed that after he took office for a few months, Chen Liwu and some Intel directors had disagreements on key issues, such as whether the company should continue its chip manufacturing business or withdraw completely. Chen Liwu recently tried to collect new funds and acquire an artificial intelligence (AI) company, but was opposed by some members of the board of directors.

Chen Liwu and Intel Chairman Frank Yeary had differences in opinions, mainly on whether to continue to manufacture chips for themselves and customers, or withdraw from manufacturing business. Former investment banker Yeary planned to withdraw from the GEM's foundry business at the end. The proposals included business spin-offs and introduced companies such as NVIDIA and Amazon to invest in shares, and even considered the business selling to Taiwan Stock Exchange, but it was not achieved in the end.

Chen Liwu believes that Intel's crystalline foundry business is the key to the company's success and can ensure that the United States does not rely on foreign semiconductor companies such as Taiwan Electric and Samsung. Recently, Intel has contacted several Huaer Street Investment Banks and is preparing to raise $1 billion in financing. The funds will be invested in the construction of the Crystal Factory and strengthen the company's asset debt statement. The management team originally hoped to start this quarterly financial report, but some directors wanted to postpone it until 2026.

Judging from the current situation, Intel still supports Chen Liwu. 7. The company, the board of directors and Chen Liwu "committed to promoting the national and economic security interests of the United States, and made major investments consistent with the president's "U.S. Priority" policy."

On the other hand, Intel also considered purchasing AI companies. Intel was once the giant in the US semiconductor industry, but since the beginning of last year, its market value has been reduced by half.

Chen Liwu and others believed that the acquisition of AI companies was one of the opportunities to catch up with NVIDIA and AMD, but in the end, the company became the acquisition target of another technology company due to the long review of the board of directors. People familiar with the matter revealed that Intel's recent strategic cooperation has failed, and Chen Liwu believes that his two hands have been restricted by the board of directors and cannot eliminate the company's dilemma.

Chen Liwu recently forgot to record and said, "There will be no blank checks. Each investment must be economically beneficial."

Why did Trump ask Chen Li to resign?

Back to Trump's request for Chen Liwu to resign, the report believes that Trump's concerns seem to be related to recent events, including Cadence Design Systems, which Chen Liwu led in 2021, and the investment companies investing in Chinese companies in large quantities.

Ihua Computer agreed to the conviction last week and paid more than $140 million to convict the U.S. Department of Justice for selling chip design products to a Chinese military university.

Before Trump made his statement, Republican Party member Tom Cotton just wrote to the Chairman of Intel, questioning Chen Liwu's relationship with Chinese companies. Intel 7 said in a statement that it is looking forward to "continuous cooperation" with the US government.

People familiar with the matter revealed that Chen Liwu's other challenge was that former CEO Pat Gelsinger had maintained good relations with deputy president JD Vance before leaving office. A former board member believed that Pat Gelsinger's relationship with JD Vance was Intel's precious channel to White House, and even turned Intel's life.

Intel’s CEO, Under Attack From Trump, Is Already at Odds With His Board

Extended reading: Trump issued a message directly pointing out that Intel executive chief Chen Liwu is involved in serious conflicts of interest and must be resigned immediately