Sources told The Wall Street Journal that the discussion will be wide-ranging, with Tan expected to share details of his personal and professional history, as well as outline proposals for closer cooperation between Intel and the U.S. government. 

The visit comes at a time when tensions between the White House and the semiconductor giant have escalated.

Trump’s intervention last week was unusual, even by Washington standards. On 7 August, he declared Tan “highly conflicted” because of his ties to Chinese firms, adding there was “no other solution to this problem” but his resignation. 

The statement triggered issues among investors and industry analysts, given Intel’s central role in America’s semiconductor and defence supply chains.

Part of the controversy comes from earlier revelations. In April, Reuters reported that Tan had invested at least $200 million in hundreds of Chinese advanced manufacturing and chip companies, some allegedly linked to the Chinese military. 

The disclosure fuelled security concerns, especially as Intel receives billions of dollars in federal subsidies under the CHIPS Act.

Tan’s career history has also attracted some questions. From 2008 to December 2021, he served as CEO of Cadence Design Systems, a chip design software firm. During that time, Cadence sold products to a Chinese military university reportedly involved in nuclear simulation research. Last month, Cadence agreed to plead guilty and pay over $140 million to settle U.S. charges related to those sales.

Since taking over Intel in March 2025, Tan has faced enormous challenges. The company reported an $18.8 billion net loss in 2024 and a $2.9 billion loss in the second quarter of 2025. 

His response has been drastic, announcing 25,000 job cuts, cancelling multiple factory projects, and acknowledging that Intel was “too late” to compete in AI training chips. Tan has adopted what he calls a policy of “brutal honesty” and declared “no more blank checks” for speculative ventures.

In a statement following Trump’s remarks, Tan said he shared the president’s commitment to advancing U.S. national and economic security. Monday’s meeting will test whether that commitment is enough to secure his position, and determine if Intel can maintain its strategic standing in the U.S. chip sector at a time of growing geopolitical rivalry.

The accusation, which was posted Thursday on Trump’s social media platform, has left the tech and political sectors in shock, increasing evaluation on one of America’s most strategically important chipmakers.

“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem. Thank you for your attention to this problem!” Trump posted on Truth Social.

Trump offered no specific evidence to back his claim, but his statements come in the wake of some Republican issues on the company. 

On Wednesday, Senator Tom Cotton had written to Intel’s board demanding clarity on Tan’s personal and professional ties to Chinese entities. 

Cotton’s letter raised red flags about Tan’s leadership at Cadence Design Systems—where tools were reportedly sold to a Chinese military-linked university—and his subsequent investments in Chinese tech firms through his venture capital arm, Walden International.

A Reuters report detailed that Tan had channeled over $200 million into various Chinese companies, with several reportedly linked to the country’s military or national security infrastructure. Cotton has questioned whether such entanglements are compatible with Intel’s receipt of federal funds under the CHIPS and Science Act.

“The new CEO of @intel reportedly has deep ties to the Chinese Communists. U.S. companies who receive government grants should be responsible stewards of taxpayer dollars and adhere to strict security regulations. The board of @Intel owes Congress an explanation,” Cotton posted on X, attaching his formal letter.

Tan, who assumed the role of CEO in March 2025, has been steering Intel through a major overhaul in the face of stiff competition from Nvidia, AMD, and TSMC. 

His tenure has so far involved aggressive cost-cutting: thousands of job losses, cancelled factory expansions, and efforts to offload non-core business units. His stated aim is to restore Intel’s reputation as a leader in chip engineering, a position it has steadily lost over the last decade.

But these leadership decisions now risk being overshadowed by the political fallout. Intel’s strategic importance to U.S. national security is significant. It is the single largest beneficiary under the CHIPS Act, with $8.5 billion earmarked for new manufacturing facilities across Arizona, New Mexico, Ohio, and Oregon. 

The controversy around Tan’s alleged links to China could compromise the company’s ability to maintain bipartisan confidence and secure future federal support.

Intel has not yet responded to multiple requests for comment on the matter. Tan himself has remained silent as calls for transparency mount.

Meanwhile, investors are reacting. Intel’s stock fell nearly 5% in premarket trading following Trump’s post, reflecting growing anxiety over potential leadership instability and the political issues surrounding the company. 

With Washington increasingly wary of Beijing’s influence in the tech supply chain, the timing of these revelations, whether substantiated or not, puts Intel in an uncomfortable spotlight.

The deal comes as an important lifeline for Samsung’s struggling contract chipmaking division, which has been losing billions. 

With this agreement, the tech giant now has a clearer path to sustainability and renewed relevance in the global semiconductor space.

The South Korean firm had previously faced challenges in securing major clients for its Texas plant, forcing delays and casting doubts over its viability. Now, the site has found purpose.

Samsung confirmed the agreement last week but had withheld the client’s identity due to a confidentiality clause. Tesla CEO Elon Musk, however, made it public in a pair of posts on X. 

“Samsung agreed to allow Tesla to assist in maximising manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house,” he stated. In a follow-up, he added, “The $16.5B number is just the bare minimum. Actual output is likely to be several times higher.”

The chips in question, Tesla’s upcoming AI6 processors, are expected to build on the Dojo supercomputer architecture and will support Tesla’s next-gen Full Self-Driving (FSD) system, humanoid robots (Optimus), and AI data centres. 

Production is slated to begin between 2027 and 2028 using Samsung’s advanced 2nm process, which offers 25% better power efficiency and 12% higher performance compared to its 3nm predecessor.

Musk’s unusual level of involvement shows just how critical the AI6 chip is to Tesla’s vision. It also stresses a rare arrangement: a customer directly involved in the operations of a semiconductor foundry. 

This level of collaboration is almost unheard of in the chipmaking world and represents a major vote of confidence in Samsung’s process capabilities, despite its recent setbacks.

Samsung’s foundry division, which focuses on logic chips designed by external clients, posted a staggering loss of over $3.6 billion in the first half of 2025. The loss was attributed to underutilised capacity and the exodus of key clients, many of whom opted for rival TSMC due to superior process technology. 

Market research firm TrendForce estimates Samsung’s foundry market share has plunged to just 7.7%, while TSMC holds a commanding 67.6%.

“This order is quite meaningful,” said Ryu Young-ho, a senior analyst at NH Investment & Securities, pointing to the fact that Samsung’s Taylor plant had “virtually no customers” until now.

The Tesla contract is now Samsung’s largest foundry deal to date, accounting for roughly 7.6% of its annual revenue. Its importance goes beyond commercial value. 

The deal may bolster South Korea’s negotiations with Washington, as the country pushes for deeper tech alliances and exemption from looming 25% U.S. tariffs. It also aligns with the objectives of the U.S. CHIPS Act, which has helped subsidise the expansion of Samsung’s Texas fab.

Analysts believe the deal could help arrest the bleeding in Samsung’s foundry division. Pak Yuak of Kiwoom Securities noted it could reduce losses and provide much-needed credibility at a time when investors and stakeholders have raised concerns about the company’s future in advanced chip production.

TSMC still holds the upper hand technologically and commercially, supplying giants like Apple, Nvidia, and Qualcomm. But the Tesla-Samsung partnership introduces a new dynamic, one where deep collaboration and physical proximity (Musk lives near the Texas plant) could create an edge in speed, customisation, and oversight.

This funding, announced by the Department of Commerce, will support Intel’s manufacturing projects in Arizona, New Mexico, Ohio, and Oregon, to revitalise the American semiconductor industry under the CHIPS and Science Act of 2022.

The CHIPS Act, a signature initiative of President Joe Biden’s administration, allocates $52.7 billion to strengthen the domestic chipmaking sector. Of this, $39 billion is earmarked for semiconductor production and $11 billion for research and development. 

Intel’s subsidy is the largest awarded to date under the programme, as the government seeks to reduce reliance on foreign supply chains and address vulnerabilities exposed during the pandemic.

Intel, which has already achieved several project milestones, is expected to receive at least $1 billion of the subsidy by the end of 2024. 

Commerce Secretary Gina Raimondo spoke on the impact of this investment, stating that it ensures “American-designed chips are manufactured and packaged by American workers for the first time in years.”

Scaling Domestic Capacity Amid Challenges

Intel’s funding will help in boosting the U.S. semiconductor space. The company has committed to an expansive $100 billion domestic manufacturing initiative across four states, which includes constructing new facilities and upgrading existing ones. 

However, the grant amount was revised from an earlier projection of $8.5 billion, following Intel’s separate $3 billion contract with the Department of Defense for producing advanced semiconductors under a national security programme. 

This adjustment was made without compromising the company’s vision or its projects’ timelines.

Nevertheless, the chipmaker had declining profit margins and workforce reductions have followed years of aggressive investments led by CEO Pat Gelsinger. 

But Gelsinger noted the importance of bipartisan support for restoring U.S. technology leadership, calling it “critical to the nation’s economic growth and security.”

Intel’s evolving business strategy includes transitioning to a “foundry” model, where it produces chips designed by external firms. This change has necessitated significant capacity-building, with major investments in new fabrication plants, particularly in Ohio and Arizona. 

Yet, global market challenges have delayed some projects, including those in Germany and Poland, reflecting the complex dynamics of the semiconductor industry.

Safeguards and Incentives

The Commerce Department has introduced measures to ensure accountability and protect taxpayer funds. Intel’s award includes restrictions on stock buybacks for five years and provisions for sharing excess profits. 

Again, the company opted against an $11 billion government loan initially offered, pointing to unfavourable terms for its shareholders.

Beyond direct subsidies, Intel stands to benefit from a 25% investment tax credit on qualified expenditures exceeding $100 billion. These incentives, coupled with strategic partnerships, such as its agreement with Tower Semiconductor, allow the company to strengthen its domestic and global footprint.

The U.S. government has prioritised semiconductor production as a cornerstone of its industrial and economic strategy. The CHIPS Act is part of a goal to reshore manufacturing, create high-paying jobs, and enhance national security. 

White House Deputy Chief of Staff Natalie Quillian described the Intel subsidy as an essential step in implementing this vision, reiterating its role in delivering tangible benefits to the American people.