US Senator Questions Intel CEO’s Ties to Chinese Firms and Cadence Design
US Republican Senator Tom Cotton raised concerns about Intel’s new CEO Lip-Bu Tan and his connections to Chinese companies, including a criminal case involving his former company Cadence Design. Cotton’s letter to Intel’s board chair expressed worries about the impact on national security and inquired about measures taken regarding Tan’s past.
Senator Cotton also questioned whether Tan was required by Intel to divest from Chinese chip firms linked to military or Communist Party and disclose his ties due to Intel’s participation in the Secure Enclave program.
Referring to Intel’s federal funding, Cotton sought clarification on Tan’s disclosures about investments and professional roles related to Chinese companies.
In response, an Intel spokesperson emphasized the company’s commitment to US national security and integrity in defense affairs, assuring that concerns would be addressed.
Noting previous reports, Cotton highlighted Tan’s substantial investments in Chinese companies, some associated with the military, urging a deeper inquiry into Tan’s financial ties.
The letter outlined questions regarding Intel’s responsibility with taxpayers’ money and adherence to security regulations in light of Tan’s associations with Chinese companies.
Reuters story was referenced in Cotton’s letter, reflecting concerns raised about Tan’s multiple investments in Chinese firms.
Cadence Settlements and Legal Actions
While it’s legal for US citizens to invest in Chinese companies unless barred by the US Treasury, concerns arose over Cadence Design’s recent legal issues. Cadence agreed to pay over $140 million for selling chip design products to a Chinese military university suspected of nuclear simulations.
Despite Tan’s past leadership at Cadence, recent actions have been taken to resolve legal matters, showing a commitment to compliance with regulatory authorities.
Tan’s tenure at Cadence, running from 2008 to 2021 and serving as the executive chairman until 2023, is under scrutiny for sales to Chinese entities involving design software and tools for chip production.