Trump calls for immediate resignation of conflicted Intel CEO
Intel Corporation's CEO, Lip-Bu Tan, has faced criticism over his personal investments in Chinese companies, including those allegedly linked to the Chinese military and Communist Party. The concerns stem from Tan's reported ownership of stakes in dozens of Chinese firms and investments worth hundreds of millions into advanced manufacturing and chip companies between 2012 and 2024.
At least eight of the companies Tan invested in reportedly have ties to the Chinese People’s Liberation Army (PLA). This revelation has sparked national security scrutiny, given Intel's critical role in U.S. semiconductor manufacturing.
The controversy began when Cadence Design, a company where Tan previously held leadership positions, pleaded guilty to U.S. export control violations related to business with a Chinese military university. Republican Senator Tom Cotton wrote a letter to Intel's board chair, expressing concern about Tan's "highly conflicted" ties to China and questioning whether Tan had properly divested from firms with military or Communist Party links.
Tan, who became an investor in Semiconductor Manufacturing International Corp (SMIC), China's largest chip foundry, in 2001 and served on its board until 2018, has since denied any wrongdoing. He sent a memo to Intel employees addressing the concerns, stating that he has always operated within the highest legal and ethical standards. However, the extent of Tan's divestments remains unclear.
The controversy has led to public calls for Tan's resignation, including from former President Donald Trump. Intel, for its part, has stated that it is making significant investments aligned with Trump's agenda and that it would address Cotton's concerns directly, committing to the national security of the United States.
Tan was appointed as Intel CEO in March, and it is unclear whether the controversy has had any impact on Intel's shares. On the day this article was written, Intel's shares traded down nearly 2% in premarket trading.
It is worth noting that Tan is not the only individual facing scrutiny. Walden, another investor, was involved in a joint investment in Intellifusion, a surveillance company blacklisted by the U.S. Department of Commerce in 2020. Additionally, SMIC was sanctioned by the U.S. in 2020 for its ties to the Chinese military.
As the investigation continues, it remains to be seen how this controversy will unfold and whether Tan will be required to fully divest from his Chinese investments.
References:
- CNN Business
- The Wall Street Journal
- Bloomberg
- Reuters
- The New York Times
- The controversy surrounding Intel CEO Lip-Bu Tan's investments in Chinese companies, several of which have ties to war-and-conflicts related entities like the Chinese People’s Liberation Army (PLA), has led to calls for his resignation, including from former President Donald Trump.
- The ongoing investigation into Tan's investments in Chinese companies, including those with policy-and-legislation implications and those involved in general-news topics such as surveillance, may require him to fully divest from these investments, depending on the outcomes of the inquiry.
