Raising serious national security doubts, Intel’s new CEO Lip-Bu Tan faces scrutiny over past investments in Chinese tech firms, including some with military ties.
Intel’s newly appointed CEO, Lip-Bu Tan, has invested in over 600 Chinese tech companies, including some with links to the People’s Liberation Army (PLA), according to a Reuters investigation. These investments, made over more than a decade, are raising concerns due to Intel’s strategic role in US defence technology.
Tan’s past ventures include funding at least eight Chinese firms connected to the PLA. His links to these companies were uncovered through corporate filings in the US and China.
While it is not illegal for US citizens to hold stakes in Chinese firms, even those tied to the military, the issue is seen as sensitive given Intel’s work with the US Department of Defense.
Intel, which holds a $3 billion defence contract and works on classified chip development, stated that Tan disclosed potential conflicts before his appointment.
However, investors and analysts remain divided. Some argue Tan’s ties pose a risk to national security, while others view his experience in China as an asset for reviving Intel’s fortunes.
Tan made his investments via Walden International, the venture capital firm he founded, as well as two Hong Kong-based companies. Reuters found many of these investments still active, despite claims from a source that he has divested.
Several of Tan’s investments involve partnerships with Chinese government-backed funds and state-owned enterprises. He also once held a board seat at SMIC, China’s largest chipmaker, which is now under US sanctions.
Intel declined to comment further. The US Department of Defense and 11 Intel board members did not respond. Through its embassy, China rejected criticism, stating the US was politicising trade and security issues.
As Intel navigates technological and geopolitical challenges, Tan’s investment history may remain contentious.
