A prime Republican senator demanded new Intel CEO Lip-Bu Tan reveal if he has any ties to China’s Communist Get together and army – citing nationwide safety considerations.
In a letter despatched Wednesday to Intel Chairman Frank Leary, Sen. Tom Cotton (R-Ark.) wrote that he’s involved “concerning the safety and integrity of Intel’s operations and its potential impression on US nationwide safety,” in response to a duplicate of the letter obtained by The Put up.
Tan changed ousted Intel chief Pat Gelsinger in March — a 12 months after the struggling firm was awarded a whopping $8 billion in Biden-era CHIPs Act funding.
Cotton’s missive got here after a report earlier this 12 months claimed Tan invested no less than $200 million throughout a whole bunch of Chinese language companies between March 2012 and December 2024.
A few of these superior manufacturing and semiconductor companies have been linked to the Chinese language Communist Get together and army, Reuters reported in April.
In his letter, Cotton questioned whether or not the board had required Tan to divest from these stakes earlier than assuming the CEO function.
The senator requested whether or not Tan had disclosed his remaining investments to the US authorities, since Intel has a duty as a serious recipient of federal funding.
He additionally demanded to know whether or not the board was conscious of subpoenas focusing on Cadence Design – which Tan ran from 2008 to 2021 – earlier than it employed him.
“Intel and Mr. Tan are deeply dedicated to the nationwide safety of the US and the integrity of our function within the US protection ecosystem,” an Intel spokesperson advised The Put up.
Intel added that it’ll deal with the matter with Cotton, who requested for responses by Aug. 15.
“Intel is required to be a accountable steward of American taxpayer {dollars} and to adjust to relevant safety laws,” Cotton wrote within the letter.
“Mr. Tan’s associations elevate questions on Intel’s capability to satisfy these obligations.”
In 2024, Intel was awarded $8.5 billion in CHIPs funding underneath the Safe Enclave program, a nationwide safety initiative to make safe microchips for protection and intelligence purposes.
Later that 12 months, the federal government slashed that determine by greater than $600 million to about $7.85 billion. Intel nonetheless ranks as one of many prime firms receiving probably the most federal funding.
A supply conversant in the matter advised Reuters in April that Tan had divested from his positions in Chinese language companies.
The outlet reported on the time that Chinese language databases nonetheless listed lots of his investments as present.
Whereas it’s not unlawful for US residents to carry stakes in Chinese language firms, there’s a US Treasury checklist of banned Chinese language companies.
Reuters reported earlier this 12 months that Tan was not invested instantly in any firm on that checklist.
In the meantime, Cadence Design final week agreed to plead responsible and pay greater than $140 million to settle expenses that it bought its chips to a Chinese language army college, in response to a Reuters report.
The establishment was believed to be concerned in simulating nuclear blasts, in response to the report.
These gross sales occurred underneath Tan’s management at Cadence. After stepping down as CEO in 2021, Tan stayed on at Cadence as govt chairman by way of Could 2023.
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