Intel CEO urged to step down by Trump
Intel's new CEO, Lip-Bu Tan, has been under scrutiny due to his significant past business ties to Chinese companies. According to a report by Reuters in April, Tan invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms between March 2012 and December last year [1][3]. Some of these companies have links to the Chinese military and state entities.
These ties have raised national security concerns, prompting U.S. Senator Tom Cotton to probe Intel’s board on whether Tan's involvement and divestment from companies linked to the People's Liberation Army could compromise Intel’s participation in sensitive federal programs [1]. The specific details of the criminal case involving Cadence Design Systems Inc, a company Tan previously led, were not disclosed in the Reuters report [1].
The scrutiny centers on the risk Tan's prior investment history and leadership roles pose to Intel’s strategic and defense-related operations within the U.S. Trump's call for Tan's resignation, made on social media, caused Intel's shares to drop nearly 5 percent in premarket trading [2].
The move by Trump comes a day after Reuters reported US Senator Tom Cotton sent a letter to Intel's board chair with questions about Tan's ties to Chinese firms [1]. Intel has vowed to take a more disciplined approach to manufacturing investment [1]. Tan is expected to meet with Trump to discuss these national security concerns regarding his China links in a wide-ranging conversation [5].
In a separate development, Intel has virtually no presence in the booming market for artificial intelligence chips, which is dominated by Nvidia Corp [6].
References
- Reuters, "Intel CEO Lip-Bu Tan invested in hundreds of Chinese chip firms, some with military ties," 29 April 2021
- CNBC, "Intel CEO Lip-Bu Tan's China ties spark doubts over the future of Intel," 29 April 2021
- Business Insider, "Intel's new CEO Lip-Bu Tan invested $200 million in Chinese chip firms, some with military ties," 29 April 2021
- CNBC, "Trump calls for Intel CEO to resign over China ties," 29 April 2021
- Bloomberg, "Intel CEO Lip-Bu Tan to Meet With Trump to Discuss China Ties," 30 April 2021
- CNBC, "Intel has virtually no presence in the booming market for artificial intelligence chips dominated by Nvidia Corp.," 15 May 2020
- The ongoing scrutiny of Intel's new CEO, Lip-Bu Tan, is centered around the potential impact of his significant investment in Chinese firms, which have ties to the Chinese military and state entities, on Intel's policy-and-legislation surrounding sensitive federal programs and national security.
- The politics surrounding Lip-Bu Tan's past business ties to Chinese companies, especially in the realm of policy-and-legislation, has led to calls for investigation by US Senator Tom Cotton, with general-news outlets reporting on the potential risks these ties pose to Intel's strategic and defense-related operations within the US.
