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U.S. Republican Senator Tom Cotton expressed concern about the potential impact on Intel’s operations and wrote a letter to the company’s board of directors, specifically to chairman Frank Yeary. Cotton asked whether the board was aware of any subpoenas sent during Tan’s tenure as CEO at Cadence, before he joined Intel. He also inquired about measures taken to address these concerns.
Cotton believes that since Intel benefits from federal incentives, it must ensure no ties with the Chinese Communist Party (CCP). He argues that Tan’s previous involvement with Chinese entities should be fully divested. In response, Intel stated that its CEO is deeply committed to U.S. national security.
Lip-Bu Tan indeed had a significant connection with China; he held authority over 40 Chinese companies and minority stakes in over 600 firms. Although reports suggest he has divested these positions, the ties remain a point of contention.
Most of Tan’s investments are through his venture capital firm, Walden International. While U.S. entities can legally invest in China unless specifically banned by the Treasury, Tan appears to be within legal bounds for now.
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