The US president is demanding that Intel's CEO, who was appointed this year, immediately resign over his ties to China. In a statement to Truth Social, he said that "there is no other solution to this problem."
Earlier, Reuters reported that Republican U.S. Senator Tom Cotton sent a letter to Intel's chairman with questions about CEO Lip-Bu Tan's ties to Chinese firms and a recent criminal case involving his former company, Cadence Design.
Back in April, reports emerged that the CEO, who was appointed in March, had large investments in Chinese technology companies. In total, Tang managed more than 40 companies in China and had stakes in more than 600 enterprises with a total value of at least $200 million.
Among the companies involved with Lip-Bu Tang were firms with ties to the Chinese People's Liberation Army (PLA) and other government agencies.
"Intel has an obligation to be a responsible steward of American taxpayer funds and to comply with applicable security regulations," Cotton's letter said. "Mr. Tan's connections raise questions about Intel's ability to meet these obligations.
Intel shares fell nearly 5% in premarket trading after Trump's statement.