A Republican senator has requested that new Intel CEO Lip-Bu Tan clarify the company’s potential connections to China’s Communist Party and military, raising concerns about national security.
In a letter sent on Wednesday to Intel Chairman Frank Leary, Senator Tom Cotton (R-ARK.) expressed worries regarding the safety and integrity of Intel’s operations and the possible implications for U.S. national security, as noted in a copy of the letter obtained by the Post.
Tan took over as CEO in March, succeeding Pat Gelsinger, amid a challenging period for the company that received $8 billion in funding under the Biden-era Chips Act last year.
Cotton’s inquiry was sparked by claims stating that between March 2012 and December 2024, Tan reported investments totaling at least $200 million in various Chinese firms.
Some of these advanced manufacturing and semiconductor enterprises are reportedly associated with China’s Communist Party and military, as reported by Reuters back in April.
In his correspondence, Cotton raised questions about whether the board had prompted Tan to divest from these investments before his CEO appointment.
He also inquired if Tan had disclosed these ongoing investments to the U.S. government, given that Intel is a significant recipient of federal funds.
Additionally, Cotton wanted to know if the board was aware of a subpoena associated with Cadence Design that lasted from 2008 to 2021 prior to hiring Tan.
An Intel spokesperson responded to the Post, asserting that the company and Tan are firmly dedicated to maintaining integrity within U.S. national security and defense sectors.
Intel indicated they intended to engage with Cotton and aimed to provide a response by August 15th.
In his letter, Cotton emphasized, “Intel is a responsible steward of the U.S. taxpayer dollar and must adhere to relevant security regulations,” while questioning Tan’s connections and their implications for Intel’s responsibilities.
This year, Intel received $8.5 billion under the Secure Enclave program, a national security initiative designed to develop secure microchips for defense and intelligence needs. However, that funding was later adjusted to approximately $7.855 billion, a reduction of over $600 million, yet Intel remains one of the top beneficiaries of federal funding.
A source familiar with the situation informed Reuters in April that Tan divested from his position at a Chinese company.
The report indicated that a Chinese database still lists many of his investments as active. While U.S. citizens can legally hold shares in Chinese firms, the U.S. Treasury has a list of prohibited entities.
Earlier in the year, it was reported by Reuters that Tan had not been directly invested in any companies on that list.
In other news, Cadence Design recently pleaded guilty, agreeing to pay over $140 million and settle charges involving the sale of sensitive information to a Chinese military university, according to Reuters. This agency was believed to be engaged in simulating nuclear explosions.
These transactions occurred while Tan was leading Cadence. After stepping down as CEO in 2021, he remained as executive chairman until May 2023.
