Intel CEO Invested In Hundreds of Chinese Companies—Some With Military Ties

Lip-Bu Tan, the man chosen to lead Intel—the U.S.'s largest chipmaker—has invested in hundreds of Chinese tech firms, including at least eight with links to the People’s Liberation Army (PLA), according to a Reuters review of Chinese and U.S. corporate filings, Eduardo Baptista, Stephen Nellis, and Max A. Cheney reported.

Tan reportedly controls more than 40 Chinese companies and funds, and holds minority stakes in over 600 others via investment firms he owns or manages. I Photo: Intel

Tan’s appointment last month as CEO of Intel, a company that manufactures cutting-edge chips for the U.S. Department of Defense, has raised concerns among some investors about his ongoing ties to Chinese businesses.

The Reuters review found that Tan controls more than 40 Chinese companies and funds, and holds minority stakes in over 600 others via investment firms he owns or manages. In many cases, those stakes are shared with Chinese government entities.

Investors interviewed by Reuters expressed concern that the scope of Tan’s financial entanglements in China could complicate Intel’s efforts to compete.

Along with Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics, Intel is one of only three companies in the world producing the most advanced chips—and the only one based in the U.S.

“The simple fact is that Mr. Tan is unqualified to serve as the head of any company competing against China—let alone one with intelligence and national security ramifications like Intel,” said Andrew King, a partner at Bastille Ventures.

King noted that neither he nor his fund hold investments in Intel.