Senator Questions Intel CEO’s China Ties Amid Data Center Security Concerns

U.S. Republican Senator Tom Cotton sent a letter to Intel’s board chair, Frank Yeary, raising concerns about new CEO Lip-Bu Tan’s ties to Chinese firms and a recent criminal case involving his former company, Cadence Design Systems. The inquiry focuses on national security risks tied to Intel’s critical role in supplying chips for U.S. data centers and defense programs, particularly under the Biden administration’s Secure Enclave initiative. With semiconductors powering essential infrastructure like data centers, Cotton’s letter underscores escalating U.S.-China tech tensions and the need for secure domestic chip production.

Tan’s Chinese Investments Under Fire

Lip-Bu Tan, appointed Intel’s CEO in March 2025, faces scrutiny over his extensive investments in Chinese tech firms. A Reuters investigation from April 2025 revealed that Tan, through venture funds like Walden International, invested at least $200 million in hundreds of Chinese companies between 2012 and 2024, including eight with ties to the People’s Liberation Army (PLA). As chairman of Walden, Tan holds stakes in over 600 firms, with 20 co-owned alongside Chinese government funds or state-owned enterprises like China Electronics Corporation, sanctioned by the U.S. in 2020. While no evidence links Tan’s investments to the U.S. Treasury’s Chinese Military-Industrial Complex Companies List, where such investments are banned, Cotton’s letter questions whether Intel’s board required Tan to divest these holdings or disclose additional ties, given Intel’s involvement in the Secure Enclave program.

Cotton emphasized Intel’s federal funding, asking about Tan’s disclosures of investments and roles in China. Intel responded that Tan completed a questionnaire disclosing potential conflicts and affirmed its commitment to U.S. national security, promising to address Cotton’s concerns directly. However, Chinese databases list many of Tan’s investments as active, and Reuters could not confirm the extent of his divestitures. With data centers driving 20% of global chip demand, projected to grow by 2030, Tan’s affiliations raise concerns about Intel’s role in critical infrastructure like AI-driven data centers.

Cadence Case and Geopolitical Stakes

Cotton’s letter also probes Tan’s tenure at Cadence Design Systems, where he was CEO from 2008 to 2021 and executive chairman until May 2023. Last week, Cadence agreed to plead guilty and pay over $140 million to settle charges for selling chip design software to a Chinese military university, believed to be involved in nuclear blast simulations. The sales occurred under Tan’s leadership, prompting Cotton to question whether Intel’s board was aware of subpoenas issued to Cadence and what due diligence was conducted before hiring Tan. Cadence, in a Securities and Exchange Commission filing, expressed satisfaction with its settlements with the Justice and Commerce departments.

The inquiry reflects broader U.S.-China tech rivalries, particularly in semiconductors critical for data centers and defense. A 2024 U.S. House Select Committee report noted Walden International’s $161 million in investments in Chinese firms with military ties between 2001 and 2022, amplifying concerns. Intel’s role in producing chips for the Department of Defense, supported by federal funding, makes Tan’s past a potential liability. Cotton warned that Tan’s ties could undermine Intel’s ability to responsibly manage taxpayer dollars. The controversy aligns with industry trends, such as Google’s recent utility deals to curb data center power use, highlighting the strategic role of chips in tech infrastructure. Tan’s leadership must navigate these geopolitical and legal challenges to maintain Intel’s credibility with regulators, investors, and defense partners. The outcome of Cotton’s inquiry could shape Intel’s role in the data center and defense sectors, where secure chip supply chains are increasingly vital.