Lip-Bu Tan, Intel’s current CEO, has been under intense pressure in recent hours. Recently, some voices (in particular some Republican senators) raised his past links with the management and administration of nearly 40 Chinese companies. It was also revealed that he held or had held minority stakes in over 600 other Chinese companies. These U.S. Senate reports initially merely pointed to links between Lip-Bu Tan and China, but national security concerns soon emerged. The main problem stems from the fact that Intel’s CEO is said to have invested in Chinese companies via venture capital funds, some of which are suspected of being linked to the Chinese military. A federal investigation is looking into these investments, which could compromise Intel’s participation in the Secure Enclave program, essential to US defense.
Lip-Bu Tan: an impossible to keep position?
The case took a more radical turn when President Trump took a stand on the subject. He quite simply called for the resignation of the current CEO… This stance obviously had the effect of a bombshell, and Intel is currently in a storm on the stock market. It’s the latest in a long line of events that has seen Intel lose almost 60% of its value over the last five years. Tan’s position is becoming difficult to maintain, and a statement is expected in the next few hours. Although Tan has apparently resigned from his positions in Chinese companies, capital links with some of these companies are said to remain. As the months go by, the climate seems to be particularly hard on Intel. Lip-Bu Tan, of Malaysian origin, is a veteran of the tech industry. His appointment as head of Intel was accompanied by a drastic cost-cutting plan.