The day after Trump called Intel’s chief ‘conflicted,’ former directors call for a new company, a new board and a new CEO

·SemiconductorsThe day after Trump called Intel’s chief ‘conflicted,’ former directors call for a new company, a new board and a new CEOBy Nick LichtenbergBy Eva RoytburgBy Nick LichtenbergFortune Intelligence EditorNick LichtenbergFortune Intelligence EditorNick Lichtenberg is Fortune Intelligence editor and was formerly Fortune's executive editor of global news.SEE FULL BIOBy Eva Roytburg Intel CEO Lip-Bu Tan.Annabelle Chih/Bloomberg via Getty ImagesFour former Intel board members are backing President Donald Trump’s surprise attack on the company’s CEO, but they’re pushing for a shake-up that is both more dramatic and wholly in line with their vocal criticism of late

In a rare collective statement vided exclusively to Fortune, the former directors said the fate of CEO Lip-Bu Tan should be decided by Intel holders and Intel’s board, but called for a radical restructuring that would spin off Intel’s manufacturing arm into an independent company to secure America’s chipmaking dominance

The group of former Intel board members— Charlene Barshefsky, Reed Hundt, James Plummer, and David Yoffie—pointed out that the company is on its fourth CEO in seven years with little imvement in results

They argued that only a dramatic break could restore Intel’s competitiveness and tect U.S. national security interests, with a rescue plan focused specifically on emancipating Intel’s “Foundry” , the manufacturing assets from which Intel duces semiconductor chips for its own ducts and for third-party customers

These advanced chip fabrication facilities are increasingly top of mind for President Donald Trump, his Chinese counterpart Xi Jinping, and the entire industry watching as the drama unfolds

Intel was long the leader in chips but has fallen behind Nvidia, TSMC and other players in recent years, as Barshefsky, Hundt, Plummer, and Yoffie argued in the pages of Fortune

Intel has two main es, one being the Foundry and the other being called simply Intel ducts, which includes its flagship PC and server microcessors, as well as networking equipment and software

Both are essential for computing, but only the Foundry is key to national security, which has been a key point in trade talks between Trump and Xi

The former directors group argued that splitting the chips manufacturing entity from the rest of Intel would directly address both market competitiveness and the nation’s strategic need for advanced semiconductors

The group called for Intel holders to insist on the split, which would create a new, independent manufacturing entity, with its own CEO and board

To make the new manufacturing company competitive with TSMC, the former directors called for remaining funds under the CHIPS Act to go towards supporting the company and to help “persuade American design firms to place orders.” That would position the new company to be able to to vide an alternative to TSMC, “both for cutting edge chips needed for data center and other commercial purposes and for national security requirements.” Mounting pressure The statement comes as pressure on Intel intensifies, after President Donald Trump publicly called for CEO Lip-Bu Tan’s resignation over his “conflicted” and alleged ties to Chinese nology firms

Trump’s demand, posted on Truth Social Thursday morning, sent shockwaves through U.S. circles and drew swift responses from the company

Tan responded in a letter to staff, posted publicly on Intel’s website, claiming there has been “misinformation” his career and his past leadership roles

The embattled CEO said that Intel is “engaging” with the Trump White House to “address the matters that have been raised and ensure they have the facts.” He added that he fully s the president’s commitment to advancing U.S. national and economic security

President Trump’s intervention ed Senator Tom Cotton’s warnings over reports of Tan’s prior investments in Chinese firms, some allegedly tied to China’s military

In his note to staff on Thursday, Tan def his integrity and claimed the current board was “fully supportive” of the work currently under way at Intel, while insisting that throughout his four decades in the industry, he has “always operated within the highest legal and ethical standards.” Intel did not immediately respond to a request for

The company added that it was “the only company in leading logic cess node development in the U.S.” and said it looked forward to “continued engagement with the Administration.” Correction: A previous version of this story incorrectly stated that the four former directors called for the ouster of Intel’s CEO

The group of former directors said that Intel holders should make the decision the CEO

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