Trump extols the "excellent narrative" of the intelligence leader
In the world of tech, Intel CEO Lip-Bu Tan is currently under intense scrutiny. Accusations of illicitly selling products to a military university in China and transferring technology to a Chinese company before joining Intel have been levied against him by U.S. Senator Tom Cotton.
These allegations, which have raised U.S. national security concerns, centre around Tan's past investments totalling over $200 million in more than 600 Chinese firms, some of which are reportedly linked to the Chinese military and government. Senator Cotton has formally probed Intel's board regarding Tan's China ties, questioning whether adequate due diligence and divestitures were completed before his appointment and if the board was aware of subpoenas related to Cadence Design, a company that pleaded guilty to federal charges for exporting technology to a Chinese military university while Tan was CEO.
The scrutiny comes at a critical time for Intel, a corporation that holds substantial U.S. Department of Defense contracts, including a $3 billion Secure Enclave program. With the sensitive nature of defense-related semiconductor supply chains, there are unresolved questions whether Tan's investment history compromises Intel's obligations. Some Chinese databases still show Tan's associations, despite his claims of full divestment.
Despite the mounting pressure, Intel has not publicly announced concrete actions such as suspending Tan or forcing his resignation. However, shareholder dissatisfaction and calls for board accountability have increased, and the investigation led by Senator Cotton is ongoing, focusing on board oversight and compliance with U.S. national security standards.
The situation has been fluid, with public and political pressures mounting against Tan's continued leadership. Yet, there are glimmers of support. Former President Trump, who previously demanded Tan's resignation over these alleged ties, recently praised Tan after meeting with him, calling it a "great story".
Intel's journey in the smartphone market has also been challenging. Once a dominant player, Intel has fallen behind due to losing the battle for a place in smartphones. Competitors like Qualcomm and TSMC, with more power-efficient processors using Arm architectures, have prevailed in the smartphone market. As a result, smartphone chips do not come from Intel, but from these competitors.
Despite these challenges, Intel looks forward to working closely with Trump and his administration. The specific timeline of the accusations against Tan is not provided, but it is clear that the tech giant is navigating through a complex and critical period.
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