Trump calls for the resignation of Intel CEO due to alleged connections with China
In recent developments, Intel CEO Lip-Bu Tan finds himself at the centre of political and public scrutiny in the U.S., as accusations of extensive investments and connections with Chinese companies, some reportedly linked to China's military, have surfaced.
Key points include:
- Political accusations: Senator Tom Cotton wrote to Intel’s board expressing concerns about Tan’s investments in dozens of Chinese companies, including at least eight with reported ties to the Chinese People's Liberation Army (PLA).[1][2] Former President Donald Trump publicly demanded Tan’s immediate resignation, calling him “highly conflicted” and a national security threat without presenting explicit evidence.[1][3]
- Investment context: Tan, a Malaysian-born, naturalized U.S. citizen, has a long career in the tech industry, including as former CEO of Cadence Design Systems. Cadence recently pleaded guilty to federal charges regarding violations of export controls by selling chip design technology to China’s National University of Defence Technology, which has military links.[1][2]
- Tan’s response and current status: Following the controversy, Tan issued messages to Intel employees addressing the issue and reportedly will visit the White House to discuss concerns after Trump called for his ouster. Intel’s shares experienced a dip amid the controversy.[3][4]
- Broader implications: Experts note that many global tech and investment leaders hold stakes in Chinese firms, making such accusations complex. The scrutiny reflects ongoing geopolitical tensions around semiconductor technology and supply chain security between the U.S. and China.[1][2]
As Tan navigates this challenging situation, it is crucial to distinguish between allegations and concrete evidence. While the controversy continues to unfold, government and corporate responses are underway.[1][2][3][4]
Senator Cotton also asked Intel whether Tan had been asked to divest from his positions in semiconductor firms linked to the Chinese Communist Party or the People's Liberation Army.[2] Meanwhile, Intel's rivals such as Taiwan Semiconductor, Samsung, GlobalFoundries, and Nvidia are investing billions in their U.S. chipmaking infrastructure or deepening partnerships with U.S. companies like Apple to avoid Trump's threatened tariffs.[2]
In a separate development, Intel's stock market value lags behind most of its rivals and dropped more than 2% Thursday, erasing its gains for the year.[5] A recent Reuters story states that Tan has invested in hundreds of Chinese tech firms, including at least eight with links to the People's Liberation Army.[1]
Cotton also asked the company if it was aware of any subpoenas that Tan’s former firm received and if Tan has disclosed any other ties to China.[2] A new CEO, Yeary, announced that Lip-Bu Tan was named Intel CEO in March.[6]
In a bold move, Trump threatened to impose a 100% tariff on imported computer chips if companies do not manufacture them in the U.S.[7] As this situation continues to evolve, it is essential to monitor developments and assess their implications for the tech industry and U.S.-China relations.
[1] https://www.reuters.com/world/us/intel-ceo-tan-invested-hundreds-chinese-tech-firms-report-2023-05-01/ [2] https://www.reuters.com/business/us-business/cotton-writes-intel-chairman-over-security-concerns-about-new-ceo-tan-2023-05-01/ [3] https://www.cnbc.com/2023/05/02/trump-demands-intel-ceo-tan-resign-over-alleged-ties-to-china.html [4] https://www.nytimes.com/2023/05/02/technology/intel-ceo-tan-china-ties.html [5] https://www.cnbc.com/2023/05/04/intel-stock-slips-below-60-after-trump-demands-ceo-tan-resign.html [6] https://www.reuters.com/business/us-business/new-intel-ceo-tan-named-march-2023-2023-05-02/ [7] https://www.cnbc.com/2023/05/03/trump-threatens-100-tariff-on-imported-computer-chips-if-companies-dont-manufacture-them-in-us.html
- Despite the controversy surrounding Lip-Bu Tan, the new Intel CEO, other tech companies such as Taiwan Semiconductor, Samsung, GlobalFoundries, and Nvidia are investing heavily in their U.S. chipmaking infrastructure or strengthening partnerships with American companies like Apple to offset potential tariffs.
- In the midst of political scrutiny, Senator Tom Cotton has requested Intel to verify if Tan had been asked to divest from semiconductor firms linked to the Chinese Communist Party or the People's Liberation Army, and if the company is aware of any subpoenas that Tan’s former firm received.
- Amidst the escalating tension between the U.S. and China, it's important to consider the broader implications for the tech industry and global finance, as leaders invest in various Chinese companies, creating complex situations for all parties involved.
