- Silicon Valley veteran and the brand new Intel CEO Lip-Bu Tan has invested a whole bunch of tens of millions of {dollars} into Chinese language corporations, Reuters reported. Among the Chinese language corporations Tan backed have hyperlinks to the Chinese language army. Tan has invested in a whole bunch of Chinese language corporations by way of Walden Worldwide and holding corporations Seine and Sakaytra.
Intel’s new CEO Lip-Bu Tan invested no less than $200 million into Chinese language companies between 2012 and 2024, together with no less than eight tied to the Individuals’s Liberation Military, based on a Reuters report.
Tan leads an organization that has a $3 billion contract with the Division of Protection to fabricate chips, together with two different DoD contracts. His earlier investments have raised issues amid souring U.S.-China relations.
“The straightforward reality is that Mr. Tan is unqualified to function the top of any firm competing towards China, not to mention one with precise intelligence and nationwide safety ramifications like Intel and its large legacy connection to all areas of America’s intelligence and the protection ecosystem,” Bastille Ventures companion Andrew King advised Reuters.
Intel didn’t return Fortune’s request for remark. However a spokesperson for Tan advised Reuters that he accomplished a questionnaire that requires disclosure of any potential conflicts of curiosity.
In the course of the first few months of the Trump administration, President Donald Trump and Chinese language President Xi Jinping have exchanged jabs within the type of tariffs: U.S. tariffs on China now stand at 145%, whereas China’s tariffs on the U.S. are at the moment 125%.
Intel is the one U.S.-based producer of probably the most superior laptop chips. And Tan is one among Silicon Valley’s most tenured traders in Chinese language tech.
He was additionally thought-about a Goldilocks choose to revive the corporate, and initially cheered by traders when he was named as Intel’s new CEO.
Whereas having Intel helmed by somebody investing in Chinese language corporations would possibly ring alarm bells for some, Elon Musk has his arms in each tech and the federal government as Tesla CEO and an adviser to President Donald Trump. Actually, Tesla has its largest manufacturing facility in China, which is chargeable for producing half of the corporate’s vehicles globally.
“After all there could also be some national-security issues right here, nevertheless it doesn’t appear to hassle the U.S. that Elon Musk, a key participant within the present administration, has a significant funding in China,” Santa Clara legislation college professor Stephen Diamond advised Fortune.
For his half, Tan made investments by way of Walden Worldwide, a San Francisco-based venture-capital agency he based within the Eighties, together with Sakarya Restricted and Seine Restricted, two holdings corporations in Hong Kong.
Between March 2012 and December 2024, Tan injected at $200 million into a whole bunch of Chinese language superior manufacturing and chips corporations, a few of which have been contractors and suppliers for the Individuals’s Liberation Military, based on Reuters.
Tan additionally controls greater than 40 Chinese language corporations and funds whereas holding a minority stake in over 600 others. In lots of circumstances, his minority possession comes alongside stakes held by Chinese language authorities entities, eight of that are tied to Beijing’s army, based on Reuters.
Walden Worldwide, in the meantime, is at the moment a joint proprietor in 20 funding funds and firms with Chinese language authorities funds or state-owned enterprises, based on Chinese language company information.
Walden has additionally collectively invested in six Chinese language tech corporations alongside Chinese language army provider China Electronics Company (CEC). Throughout his first administration, Trump signed an govt order in 2020 that banned any buying or investing in “Chinese language army corporations,” with CEC on the checklist.
In line with one other Reuters report, Walden and CEC have a joint 2% stake in surveillance firm Intellifusion, which is listed on the U.S. Division of Commerce commerce blacklist in 2020 for alleged human rights abuses in Xinjiang.
Walden Worldwide didn’t reply to Fortune’s request for remark. An unnamed supply with data of the matter advised Reuters that Tan had divested from his positions in entities from China, however the outlet was unable to substantiate that declare.
“On this political local weather, (China ties) can be one thing that accountable enterprise management at an organization like Intel would no less than have a severe dialog about the way to try to handle,” Diamond advised Reuters. “It’s clearly politically delicate and the board will surely wish to learn about it.”
The Division of Commerce’s Entity Listing bans U.S. corporations from exporting delicate applied sciences to Chinese language corporations, however doesn’t block funding.
The Pentagon prohibits corporations tied to the Chinese language army from the U.S. army provide chain. However until an organization is added to the U.S. Treasury’s Chinese language Navy-Industrial Complicated Corporations Listing, it’s authorized for U.S. residents to carry stakes in Chinese language corporations, even people who have ties to the Chinese language army.
There isn’t a proof that Tan at the moment invests immediately in corporations on the U.S. Treasury’s checklist, based on Reuters.
“The one level at which a company governance subject would possibly rise is that if Tan discovered himself on either side of a transaction,” Diamond mentioned, “the place Intel is perhaps negotiating with an organization the place he’s a director or shareholder.”
This story was initially featured on Fortune.com
