Intel CEO Lip-Bu Tan’s appointment is under scrutiny amid concerns over his investments in Chinese tech companies, a report claims. Tan is reportedly one of Silicon Valley’s longest-running investors in Chinese companies. According to a report by the news agency Reuters, the newly-appointed CEO of a company that manufactures chips for the US Department of Defense holds stakes in over 600 Chinese companies and controls more than 40 Chinese firms and funds, including at least eight with links to the People’s Liberation Army. Tan’s investment background has raised concerns among some investors. The report notes that several Intel investors who were interviewed has predicted that the scope of Tan’s investments could complicate the task of reviving the chip maker. Its also important to note that besides TSMC and Samsung , Intel is the only US-based chip maker that manufactures the most advanced computer chips.
Analyst claims Intel CEO ‘unqualified’ for his role in the company
In a statement to Reuters, Andrew King, a partner at venture capital firm Bastille Ventures expressed his concerns about Tan’s capabilities to serve as Intel’s CEO. He also mentioned that neither he nor his company is invested in the chipmaker.
“The simple fact is that Mr. Tan is unqualified to serve as the head of any company competing against China, let alone one with actual intelligence and national security ramifications like Intel and its tremendous legacy connections to all areas of America’s intelligence and the defense ecosystem,” King said.
However, some analysts argued that Tan’s experience investing in Chinese startups can offer the required skills needed to revive the struggling American chipmaker.
“He was at the top of my list and most investor’s lists of who they wanted. He’s a legend and he’s been around forever,” Bernstein analyst Stacey Rasgon said.
As per the report, Tan made his investments through his venture capital firm, Walden International, and two Hong Kong-based holding companies, Sakarya Limited and Seine Limited. As of October 31, 2024, he was the sole owner of Sakarya, and he controls Seine via Walden. Tan continues to serve as the chairman of Walden International.
Its also important to note that US citizens are legally allowed to invest in Chinese companies, including those with military affiliations, unless the companies are specifically listed on the US Treasury’s Chinese Military-Industrial Complex Companies List, which prohibits such investments. The report didn’t found any evidence that Lip-Bu Tan currently holds direct investments in any company on this list.
What Intel said about its CEO’s Chinese investments
An Intel spokesperson said that Tan has completed a questionnaire for directors and officers, which necessitates the disclosure of any potential conflicts of interest. However, the company didn’t comment on his investments in China.
“We handle any potential conflicts appropriately and provide disclosures as required by SEC rules,” the spokesperson noted.
