This call came after Republican Senator Tom Cotton asked Intel's board of directors to provide an explanation for Tan's investments in Chinese companies, including those related to the PRC military.
This call came after Republican Senator Tom Cotton asked Intel's board of directors to provide an explanation for Tan's investments in Chinese companies, including those related to the PRC military.
President Donald Trump has called on Intel's CEO to resign over possible ties to China, Bloomberg reports .
“The CEO of INTEL has a serious conflict of interest and must resign immediately. There is no other solution to this problem. Thank you for your attention to this issue!” Trump wrote on Truth Social on Thursday.
This week, Republican Senator Tom Cotton asked Intel's chairman to answer questions about CEO Lip-Bu Tan's ties to China, investments in Chinese semiconductor companies and other companies linked to that country's military.
In a letter to Frank Yeri, who chairs the chipmaker’s board, Cotton asked about investments Tan made in China before he was named Intel’s chief executive. Cotton raised specific concerns about Tan’s ties to Cadence Design Systems Inc., a technology company he led for more than a decade that sold products to a Chinese military university. The company pleaded guilty in July to violating U.S. export controls by selling hardware and software to China’s National University of Defense Technology.
“Intel and Mr. Tan are deeply committed to U.S. national security and the integrity of our role in the U.S. defense ecosystem,” the company said in a statement released Wednesday. Intel said it would review the issues raised in the letter with the senator.
Back in April, Reuters reported that Tang controls more than 40 Chinese companies and funds, as well as minority stakes in more than 600 companies he manages or owns. In many cases, Tang shares minority stakes with Chinese state entities.
The stock market immediately reacted to the news, with Intel shares falling 3.4% in premarket trading on Wall Street.
Recall that in March Intel appointed a new CEO , replacing Pat Gelsinger, who resigned at the end of last year. Lip-Bu Tan began his term with mass layoffs , as well as changes to the work process, in particular, returning people to office work . If targets are achieved over the next few years, Tan will receive a reward of about $69 million.
