U.S. Republican Senator Tom Cotton has sent a letter to Intel's board chair, Frank Yeary, raising concerns about the company's new CEO, Lip-Bu Tan, over his connections to Chinese firms and a criminal case involving his former company, Cadence Design Systems. Cotton's letter questions the security and integrity of Intel’s operations, warning of potential risks to U.S. national security. He asked whether Intel's board was aware of subpoenas issued to Cadence during Tan’s tenure as CEO and what actions were taken to address those issues before hiring him. Additionally, Cotton inquired if Tan was required to divest from Chinese chip companies tied to the Chinese military or Communist Party, and whether he fully disclosed other business ties in China, particularly in light of Intel's participation in the Biden administration’s Secure Enclave program, which aims to safeguard microelectronics supply chains for defense purposes.

Given Intel's receipt of federal funding under this initiative, Cotton pressed Intel's board for clarity on Tan’s disclosures regarding his investments and affiliations with Chinese firms. "Intel has a duty to responsibly manage taxpayer funds and uphold security obligations," Cotton stated. "Mr. Tan's associations call into question Intel's capacity to meet these responsibilities." In response, an Intel spokesperson said that both the company and Tan are "deeply committed to U.S. national security" and will address the Senator's concerns.

Earlier this year, Reuters reported that Tan, either directly or via venture funds he manages, invested over $200 million in hundreds of Chinese technology and semiconductor firms between 2012 and 2024. Although a source indicated that Tan had since divested from Chinese entities, Reuters was unable to verify the extent of these divestitures, as many investments still appeared active in Chinese records.

On a related note, Cadence Design Systems recently agreed to plead guilty and pay more than $140 million to settle charges of selling chip design software to a Chinese military university believed to be involved in nuclear simulation research. Cadence, where Tan served as CEO from 2008 to 2021 and as executive chairman until May 2023, stated in a filing that it was "pleased" to have resolved the matter with U.S. authorities. The controversial sales had occurred during Tan’s leadership at Cadence. Although it’s not illegal for U.S. citizens to invest in Chinese companies, such investments are prohibited if the entities are on the U.S. Treasury’s Military-Industrial Complex Companies List. Reuters found no evidence that Tan held stakes in any of the listed entities at the time of its report.