Intel’s new CEO, Lip-Bu Tan is said to have invested in hundreds of Chinese technology companies, including several linked to China's People's Liberation Army as well as Semiconductor Manufacturing International Corp. (SMIC), China's foundry champion, according to a review of documents conducted by Reuters. The information raises concern due to Intel's close work with the U.S. defense sector.
Intel CEO’s investment
The corporate documents reviewed by Reuters reveal that Tan controls over 40 companies in China and has minority stakes in over 600 entities in China via investment companies he manages or owns. The value of the stakes is at least $200 million.
Some of the companies Tan has invested in are contractors and suppliers for the People's Liberation Army. In numerous cases, Tan's stakes are shared with Chinese state-owned groups or regional government-backed investment funds.
Tan has made many of his investments through Walden International, the venture capital firm he founded in 1987 and of which he still is the chairman. He has also used two Hong Kong-based entities — Sakarya Limited and Seine Limited — for investment purposes. Tan is the sole owner of Sakarya, whereas Seine is under Walden's control.
While the Chinese companies controlled by Lip-Bu Tan barely compete against Intel, their ties to the PLA certainly raise concerns. Also, industry observers note it is odd for a CEO of Intel to own a stake in contract chipmaker SMIC as Intel is trying to become a foundry itself.
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