Intel's CEO is now under political pressure, as US lawmakers are concerned about his ties with Chinese companies, saying that Tan might be violating security regulations.
US Lawmaker Shows Concern Towards Integrity of Intel's Operations, Following Tan's Ties With Chinese Firms
Team Blue's troubles keep on growing with each passing day, and it is a bit surprising to see the recent developments around Intel and its operations. Just yesterday, we reported on how the company was struggling with its high-end chips, and now, in a report by Reuters, it is claimed that US lawmakers are demanding that Intel's CEO clarify his ties with Chinese firms. U.S. Republican Senator Tom Cotton has shown concern on Team Blue's operations in a letter to the board of directors.
Writing to "express concern about the security and integrity of Intel's operations and its potential impact on U.S. national security", Cotton asked in the letter to Intel chairperson Frank Yeary whether the company's board was aware of the subpoenas sent to Cadence during Tan's time there as CEO before Intel hired him. Cotton asked what measures were taken to address those concerns.
- Reuters
Cotton claims that since Intel is under federal incentives, the firm must ensure that it has no ties with the CCP and that Intel's CEO's earlier involvement with Chinese entities should be divested. However, Intel has responded to the claim, saying that the firm's CEO is deeply committed to US national security. For those unaware, Lip-Bu Tan did have a deep-rooted involvement with China, since he had authority over 40 Chinese companies and minority stakes in over 600 firms. While Tan has reportedly divested his positions, the ties with Chinese firms still remain.
Most of Intel's CEO investments are from his VC firm, Walden International. While it isn't illegal for US entities to invest in China unless the US Treasury bans the firms, Tan seems to have no involvement with such a company, so legally, he is in safe waters for now. However, the one thing that does surprise me is the sudden change in media narrative towards Intel in general, which shows that Intel needs to step up its PR game.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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