Bloomberg’s American technology columnist Dave Lee pointed out that, aside from politics, Intel also owes the public an explanation regarding its choice of CEO.
He said, “The board of this chip manufacturer must assure investors and American taxpayers that they have conducted due diligence on their CEO, Lip-Bu Tan, and any potential ties with (Communist) China.”
Lip-Bu Tan assumed the role of Intel’s new CEO on March 18 of this year and rejoined the board. Previously, he had abruptly resigned from his position on the board in August 2024, not even serving two years, due to dissatisfaction with Intel’s personnel turnover, contract manufacturing strategy, risk-averse culture, and lagging artificial intelligence (AI) strategy.
The focus on Intel’s new CEO intensified on Thursday (August 7) morning when U.S. President Trump posted on the “Truth Social” platform, demanding Lip-Bu Tan to “resign immediately,” citing conflicts of interest with China (the CCP). The struggling chip manufacturer’s stock price fell by 3% on Thursday.
On Tuesday (5th), Republican Senator Tom Cotton wrote to Intel’s chairman expressing concerns.
“Cotton reportedly stated that Tan controls dozens of Chinese companies and holds shares in hundreds of Chinese advanced manufacturing and chip companies. At least eight companies reportedly have connections to the Chinese (CCP) military.”
According to Reuters, from March 2012 to December 2024, Lip-Bu Tan invested at least $200 million in hundreds of Chinese advanced manufacturing and chip companies.
Senator Cotton also mentioned that Lip-Bu Tan previously served as CEO of EDA giant Cadence Design Systems. The company recently pleaded guilty, admitting to unlawfully selling products to a Chinese military university without authorization and transferring its technology to a related Chinese semiconductor company. Tan himself was not involved in these illegal activities, but they occurred during his tenure.
Dave Lee expressed that given the national security concerns related to semiconductors and their crucial role in building artificial intelligence, it is not unreasonable to request the Intel board to provide clarification in Congress.
“This is a question that needs answering, and Intel should be allowed to respond fairly,” he wrote.
Intel is the only U.S. company capable of producing high-end semiconductors. The company once dominated the chip field for decades but has now become a laggard, facing challenges such as market share losses, manufacturing setbacks, and rapidly declining profits. The company is also burdened with substantial debt, recently laying off around 15,000 employees.
Intel has received nearly $8 billion in funding from the U.S. government under the CHIPS Act, thus the company is obligated to provide transparency and assurances to American taxpayers, who are stakeholders in their interests.
Over the past thirty years, Walden International, Tan’s venture capital firm, has invested over $5 billion in more than 600 companies, with over 100 investments made in China. This includes transactions with once unknown Chinese startups, such as SMIC—now China’s largest chip manufacturer—where Tan served on the board for fifteen years.
In a statement on Thursday, Intel stated that Tan and the board are “firmly committed to advancing America’s national and economic security interests.”
In the last seven years, Intel has appointed four CEOs.
Later on Thursday, Tan himself posted a message to employees on the company’s official website saying he has the full support of the board. This was his first response to President Trump’s comments.
“We are in discussions with the government to address the issues raised and ensure they have the facts,” he wrote.
He also mentioned that false information has been circulating recently regarding his connections with Walden International and Cadence Design Systems.
“I want to make it clear: throughout my over forty years in this industry, I have built relationships around the world and across diverse supply chains, always following the highest legal and ethical standards. My reputation is based on trust, on doing what I say, and doing it right. This is also how I lead Intel,” Lip-Bu Tan said.
Why Intel chose Lip-Bu Tan as CEO,
The conclusion of industry insiders
Is: almost every past and potential Intel client knows him and has done business with him—they either bought products from the numerous startups he supported or used the software from his company.
Born in what is now Malaysia and raised in Singapore, Lip-Bu Tan has had a longstanding association with the Committee of 100. The organization claims to advocate for the interests of Chinese Americans.
According to The Wall Street Journal, some U.S.-based China scholars suggest that the organization’s stance aims to advance the political goals and policy interests of the Chinese Communist Party. The Committee of 100 is also connected to the United Front Work Department as an overseas influence agency, with overlapping leadership.