Lip-Bu Tang, the newly appointed CEO of Intel, has a large investment in Chinese technology companies, including those with ties to the People's Liberation Army (PLA) and other government entities. According to Reuters, Tang controls more than 40 companies in China and has stakes in more than 600 Chinese businesses through investment companies he manages or owns. The value of these stakes is estimated at at least $200 million.
Some of the companies in which Tang has invested are suppliers and contractors for the PLA, and in some cases his stakes in the companies are shared with state-owned groups or government-backed investment funds. Most of Tang's investments were made through his venture capital firm Walden International, which he founded in 1987. He also used two Hong Kong companies, Sakarya Limited and Seine Limited, for investment purposes. Tang is the sole owner of Sakarya, while Seine is controlled by Walden.
Through Walden International and other related entities, Lip-Bu Tang has invested in several Chinese technology companies, including SMIC (a leading chip manufacturer in China), Dapu Technologies (a contractor for the PLA), HAI Robotics (a company that supplies equipment to Chinese surveillance companies), Intellifusion (a supplier of surveillance technology), QST Group (a supplier of sensors for Russian drones), and Wuxi Xinxiang Information Technology Co. (a supplier to YMTC).
While it is legal to own shares in Chinese companies with military or intelligence ties, as long as they are not on special U.S. sanctions lists, there are ethical concerns about investing in surveillance companies and technology suppliers to the Russian military. Observers note that it is strange for the Intel CEO to own a stake in SMIC, as Intel seeks to compete with such factories.
Tan's ties to hundreds of companies in China have raised concerns among investors and policymakers. Some believe it could pose a risk to Intel, particularly due to national security and the political climate. Others, however, see Tan's extensive experience in Chinese technology as an advantage. Investors value his expertise and consider him a respected figure in the investment community.
Intel did not comment directly on Tan's investment, but confirmed that he had completed all necessary disclosure forms as required by the SEC.