China's largest semiconductor manufacturer in Intel, the United States, is reported to have widespread investment and business relations with Lip-Boo Tan. According to a news agency Reuters report, Tan has invested at least eight Chinese technology establishments, which are directly associated with the Chinese People's Liberation Army (PLA).
Tan, who has been appointed as CEO of Intel on March 7, has been investing in China's technology sector for a long time. However, the question of his investment has been raised from the leadership of an organization that creates sophisticated chip for the US Defense Department. Experts say his relationship with China could create a risk for US national security.
Reuters analysis shows that Tan is currently controlling more than 5 Chinese companies and their funds. In addition, he owns partially owned in more than 5 establishments, with many of them jointly owned by Chinese government agencies.
Some analysts believe that such an investment can create complications in Intel's resurgence. Only three companies in the world can build the most advanced chips – Internet, Taiwan's TSMC and South Korea Samsung. Only Intel is the United States.
Andrew King, partner of the investment firm Bastil Ventures, said that Tan is not suitable for being the head of any organization in the competition with China; In particular, an organization that is closely linked to the US intelligence and defense system.
However, some think that Tan's experience in China's technology sector can be helpful in Intel's revival. Analyst Stacy Rasgon said he was a legendary investor and his experience is important for Intel.
The Chinese Embassy refuses to comment on the Reuters report. However, the embassy spokesman Liu Pengu said, “We reject China's attempt to distort China's military-civilian coordination policy in the name of US national security.”
Tan founded a Venture Capital Farm called Walden International, a semiconductor in the semiconductor sector and in the technology sector. In addition, he owns two holding companies – Hong Kong -based Sakaria Limited and Sen Limited. He is also the chairman of Walden International.
Intel said in a statement that Tan had informed the company about the potential interest conflict and the necessary information was released as per the rules of the US Securities and Exchange Commission. However, Intel did not comment on his investment in China.
No comments were received from Walden. A source related to Reuters told that Tan had already withdrawn from his ownership of the Chinese establishment. However, Reuters analysis shows that he is still active in many investment.
Investing in a Chinese company is not illegal for US citizens. But if there is a company on the Chinese Military Industrial Complex Company in the US Treasury Department, the investment of US citizens is prohibited in that company. Reuters said no investment in Tan was directly on that ban list.
According to the US Defense Department rules, no Chinese military company can be in the US military chain. Intel is currently associated with the Defense Department in a $ 1 billion chip construction project. So experts say it is normal to question Tan's Chinese connection.
According to Reuters, Tan has invested at least $ 20 million in China's chip and advanced technology sector from December 2022. There are several PLA companies. In addition, Tan Walden has a joint investment with the Chinese Electronics Corporation, one of China's largest suppliers. US President Donald Trump declared the organization banned in 2021.
In addition, Lip-Boo Tan was one of China's largest chip maker SMIC investors. He was a member of the board of directors of this organization for a long time. The United States is now on the list of sanctions.
Just a month ago, Lip-Boo Tan was appointed as the new CEO of Intel. His appointment for Intel is with new potential, but his Chinese investment is worried. In addition, it is believed that the controversy will continue about how reasonable the appointment of the United States-China trade, technology and security competition is.
