President Trump reacts to Senator Tom Cotton’s investigation of Intel CEO Lip-Bu Tan’s alleged Chinese ties and investments.
The US authorities suspect Lip-Bu Tan of a conflict of business interests due to investments by his Walden International fund in hundreds of Chinese companies, including those associated with the army. At the same time, Intel participates in the Secure Enclave program to protect microelectronics important for US defense technologies.
“INTEL’s CEO has a serious conflict of interest and should resign immediately. There is no other solution to this problem. Thank you for your attention to this issue!”, Trump wrote on his social network Truth Social (not available in Ukraine), without providing any details.
This week, Republican Senator Tom Cotton asked Intel’s board of directors to explain how thoroughly the company had vetted Lip-Bu Tan’s business contacts with Chinese companies, particularly those related to the Chinese military. Intel responded that its chairman was deeply committed to U.S. security interests and promised to cooperate with regulators.
Tan was also the head of Cadence Design Systems more than two years ago. Recently, she confessed in supplying AI chip design software to Chinese military scientists and paid a fine of $140 million.
These events are taking place against the backdrop of mass layoffs at Intel, curtailment of the company’s activities in several countries, problems with contract manufacturing and future Panther Lake processors. Recently, the company has already has experienced a change of leadership and it would be difficult for her to change again. Bloomberg reports that Intel shares fell by 2.3% in early trading after the opening of markets in New York.
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