Intel CEO Under Fire: U.S. Lawmaker Investigates Controversial China Ties

Washington turns up the heat as scrutiny intensifies over Intel's CEO and his alleged China connections. Could this be the next tech-political scandal?

Behind closed doors, lawmakers are demanding answers—while Wall Street shrugs and asks, 'How does this affect our quarterly bonuses?'

Cotton expresses concerns about Intel’s operations

The Republican asked Intel’s board whether Tan was required to invest in Chinese companies with ties to the Chinese military or Communist Party. He was also curious whether the firm’s CEO had other ties to entities in Beijing.

Cotton argued that the tech company was involved in the Secure Enclave program, which was established under the Biden administration. According to the U.S. government, the program ensures secure supplies of microelectronics for defense.

“Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations. Mr. Tan’s associations raise questions about Intel’s ability to fulfill these obligations.”

-Tom Cotton, U.S. Senator from Arkansas.

Intel’s spokesperson ascertained that Tan and the firm were focused on ensuring the national security of the U.S. The spokesperson also stressed that both parties are dedicated to the integrity of their roles in the nation’s defense ecosystem. In the letter, the tech firm confirmed it WOULD resolve Cotton’s enquiries.

Cotton’s letter also highlighted a report by Reuters in April that revealed that Tan had several investments in a flurry of Chinese companies, some linked to the Chinese military. The report also noted that he invested either through himself or the venture funds he founded or operated.

According to the report, Tan’s investment in multiple Chinese advanced manufacturing and chip companies totalled $200 million. The source also noted that his investments stemmed from March 2012 to December 2024. 

Reuters found that Intel’s CEO had divested his investments in Chinese companies. The report revealed that it could not determine the extent of Tan’s investments in Chinese databases at the time.

The U.S. allows its citizens to invest in Chinese companies without limiting those with ties to Beijing’s military. However, those entities should not be among the companies added to the U.S. Treasury’s Chinese Military-Industrial Complex Companies List. 

The U.S. Treasury’s list prohibits U.S. citizens from holding stakes in such firms. Reuters acknowledged that it found no evidence that Intel’s boss was invested directly in any entity on the list at the time.

Cadence Design pleads guilty to illegal export control violations

Cadence Design Systems Agrees to Plead Guilty and Pay Over $140 Million for Unlawfully Exporting Semiconductor Design Tools to a Restricted PRC Military University https://t.co/ZkGaKYEGPw @FBISanFrancisco pic.twitter.com/mMRVlyFnxz

— FBI (@FBI) July 28, 2025

Cotton also highlighted Tan’s involvement in the criminal cases currently surrounding Cadence Design, where he was CEO from 2009 to 2021. The U.S. official’s concerns about Tan’s leadership at Cadence came after the U.S. Department of Justice revealed that the firm’s employees facilitated exports of chip technology to a Chinese institution. 

The company agreed to plead guilty last week and pay more than $140 million in penalties for exporting chip design tools to a Chinese military university. The DOJ revealed that the firm admitted to violating export controls by selling electronic design automation (EDA) technology to the National University of Defense Technology (NUDT). 

The institution is suspected to have ties with China’s Central Military Commission. The U.S. also added NUDT to the U.S. Department of Commerce’s Entity this year.

The DOJ believes that NUDT used U.S. tech to develop supercomputers for military purposes. National Security Assistant General John Eisenberg said Cadence has implemented a compliance programme to help mitigate any illegal sale of American technology.

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