U.S. Senator Tom Cotton has expressed concerns over Intel CEO Lip-Bu Tan's connections to Chinese companies. This issue was raised in a letter to Intel's board chair.
Cotton's Inquiries to Intel
Senator Cotton sent a letter to Intel's board chair Frank Yeary, inquiring whether the company was aware of subpoenas involving Tan’s previous company, Cadence Design. He questioned what measures were taken to address these concerns.
Cotton asked Intel whether Tan was required to invest in Chinese companies linked to the Chinese military or Communist Party.
Tan's Investments in Chinese Companies
Cotton pointed out that Intel’s CEO is involved in the Secure Enclave program, aimed at ensuring secure microelectronics supplies for defense. He referenced a report by Reuters, indicating Tan had multiple investments in several Chinese companies, some associated with military activities.
According to the report, Tan's investments totaled $200 million from March 2012 to December 2024, but he was not directly invested in any entities on the U.S. Treasury’s prohibited companies list.
Cadence Design Guilty Plea
Furthermore, Cotton highlighted Tan's involvement in the Cadence Design cases, where he served as CEO from 2009 to 2021. The U.S. Department of Justice announced that Cadence Design pleaded guilty to exporting chip design tools to a Chinese military-affiliated institution. The company agreed to pay over $140 million in penalties.
The situation involving Intel's CEO and his connections to Chinese companies raises vital questions regarding security and compliance in the context of global tensions.
