Pat Gelsinger and Trump Meeting: Conflict of Interest and Intel's Challenges

Background of the Meeting and Trump's Accusations

Gelsinger-Trump Meeting: Pat Gelsinger, Intel's CEO, revealed a meeting with former President Donald Trump, who praised him and described his success story as "amazing." In a post on "Truth Social," Trump clarified that the meeting, also attended by Lip-Bu Tan and Howard Lutnick, in addition to the Secretaries of Commerce and Treasury, was "very interesting," without elaborating on the details.

Previous Accusations: This meeting comes despite Trump having previously attacked Gelsinger, describing him as "highly conflicted" due to his alleged investments in hundreds of Chinese companies, and demanded his dismissal. Reuters had indicated that some of these companies have ties to the Chinese military. Trump stated in his post: "Mr. Gelsinger and members of my administration will spend time together and present me with suggestions over the coming week."

Gelsinger's Response to the Allegations

Gelsinger's Clarification: In response to these allegations, Gelsinger sent a message to Intel employees, reported by the "Financial Times," affirming that there was a lot of misinformation regarding his previous roles. He wrote in the message: "I wanted to be absolutely clear... I have always operated under the highest legal and ethical standards." He added that Intel is in communication with the White House "to address the issues raised and ensure they have the facts."

Context of the Crisis and Technological Competition

Security Concerns: It is worth noting that Trump's call for Gelsinger's resignation followed a letter from Senator Tom Cotton, Chairman of the Senate Intelligence Committee, expressing his concerns about the "security and integrity of Intel's operations" given Gelsinger's ties to China. This comes within the context of global technological competition, where semiconductors are a key arena for the strategic conflict between the United States and China.

Intel's Challenges and Gelsinger's Leadership

Intel's Transformation: Gelsinger took over as CEO in March to lead a company that was suffering losses, particularly in the Foundry sector, which is responsible for manufacturing chips for other companies. Intel faced difficulties in securing major clients and lagged behind its competitors, notably TSMC, which dominates the largest share of the global market. Since taking office, Gelsinger has implemented cost-cutting measures, including layoffs aimed at reducing the workforce by 22% by year-end. He also stated to investors that Intel might abandon the development of next-generation manufacturing technology, such as the 18A process, if it fails to secure a key client.