New Intel CEO Lip-Bu Tan Linked To Hundreds Of Chinese Tech Firms, Including Companies Tied To China's Military: Report

Intel Corp's INTC newly appointed CEO, Lip-Bu Tan, has deep financial ties to China's tech sector, including investments in companies reportedly linked to the Chinese military.

What Happened: Tan has control over more than 40 Chinese companies and investment funds and holds minority stakes in over 600 others through firms he owns or manages — including at least eight with reported ties to China's People's Liberation Army (PLA), reported Reuters.

The report, based on U.S. and Chinese corporate filings, found that Tan retains control or minority stakes in hundreds of Chinese tech firms via Walden International and Hong Kong-based holding companies Sakarya Limited and Seine Limited. In many cases, he co-invested alongside Chinese government entities or state-owned enterprises.

See Also: Tesla And Other US Robotics Giants Demand Federal Strategy To Compete With China's $138 Billion Push — Warn America Will Lose The Race Without It

Among the companies identified are suppliers and contractors for the PLA, including partnerships with China Electronics Corporation, a key PLA supplier sanctioned by the first Donald Trump administration in 2020.

Tan was also an early investor in Semiconductor Manufacturing International Corp (SMIC), China's largest chip foundry, which is under U.S. sanctions due to military links.

Why It Matters: While it’s not illegal for U.S. citizens to invest in Chinese companies unless they are specifically blacklisted, Tan's ties have raised questions given Intel's central role in producing advanced chips for the U.S. Department of Defense.

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The company holds a $3 billion defense contract and is involved in multiple national security-focused semiconductor initiatives.

In response to the publication, Intel said that Tan had completed a required director and officer questionnaire disclosing any potential conflicts. "We handle any potential conflicts appropriately and provide disclosures as required by SEC rules," a spokesperson said.

Intel did not immediately respond to Benzinga's request for comments.

Tan's appointment comes at a critical time for Intel as it seeks to reclaim leadership in advanced chip manufacturing.

Critics argue that Tan's extensive financial involvement in China's tech and military-linked sectors may present a conflict of interest or at least warrant heightened scrutiny, the report noted.

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

Others, however, defend Tan's deep experience in global tech investing. "He was at the top of … most investors' lists," said Bernstein analyst Stacey Rasgon. "He's a legend."

While Tan has reportedly divested some Chinese holdings, the publication found no full accounting of those exits. Chinese corporate databases continue to list many of his investments as active.

Price Action: Intel's stock has dropped 1.68% year-to-date and is down 47.17% over the past 12 months, according to Benzinga Pro data.

Despite the decline, Intel holds a respectable growth score of 3.48% based on Benzinga Edge Stock Rankings. You can see how it compares to other companies by clicking here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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