President Trump said the CEO of chipmaker Intel should quit “immediately” in the wake of information that the new chief has ties to China’s Communist Party.
“The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem,” Mr. Trump said on social media. “Thank you for your attention to this problem!”
Senate Intelligence Committee Chairman Tom Cotton on Wednesday demanded the CEO, Lip-Bu Tan, reveal if he has any ties to China’s Communist Party and its military.
In a letter to Intel Chairman Frank Yeary, Mr. Cotton, Arkansas Republican, wrote he’s concerned “about the security and integrity of Intel’s operations and its potential impact on US national security.”
Intel made Lip-Bu Tan its CEO in March to replace ejected Intel head Pat Gelsinger, one year after the beleaguered chip company was awarded $8 billion from President Joseph R. Biden’s CHIPS Act, the largest grant to a single company.
In a statement to The Washington Times, an Intel spokesperson said, “Intel, the Board of Directors, and Lip-Bu Tan are deeply committed to advancing U.S. national and economic security interests and are making significant investments aligned with the President’s America First agenda.”
“Intel has been manufacturing in America for 56 years,” the spokesperson said. “We are continuing to invest billions of dollars in domestic semiconductor R&D and manufacturing, including our new [lab] in Arizona that will run the most advanced manufacturing process technology in the country, and are the only company investing in leading logic process node development in the U.S.”
Mr. Tan reportedly “controls dozens of Chinese companies and has a stake in hundreds of Chinese advanced-manufacturing and chip firms,” Mr. Cotton said, adding that at least eight of those companies have reported ties to the Chinese People’s Liberation Army.
Mr. Tan had been the CEO of Cadence Design Systems, which makes electronic design automation technology, a key enabler of advanced chip design.
Last week, Cadence pleaded guilty to illegally selling its products to a Chinese military university and transferring its technology to an associated Chinese semiconductor company without obtaining licenses.
“These illegal activities occurred under Mr. Tan’s tenure,” Mr. Cotton noted.
He asked Mr. Leary whether the Intel board of directors was aware of Cadence’s subpoenas before hiring Mr. Tan as CEO and what measures were taken to address concerns about Cadence’s activities under Mr. Tan.
Mr. Cotton also inquired whether the board required Mr. Tan to divest from his positions in semiconductor firms linked to the Chinese Communist Party or military and any other entities in China that could pose a conflict of interest.
The senator also wants to know, given Intel’s contract under the Secure Enclave program, if Mr. Tan disclosed to the U.S. government any remaining investments, professional roles or other ties to Chinese companies.
While it’s not illegal for Americans to hold stakes in Chinese companies, the U.S. Treasury maintains a list of prohibited Chinese firms.
According to a Reuters report, Mr. Tan wasn’t directly invested in any company on that list.
Last week, Cadence Design agreed to plead guilty and pay over $140 million to settle charges that it sold its chips to a Chinese military university.
• Kerry Picket can be reached at kpicket@washingtontimes.com.
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