Intel CEO invested in hundreds of Chinese companies, some with military ties

Lip-Bu Tan, the new CEO of Intel reportedly has invested in hundreds of Chinese tech firms, including some that have links to the People’s Liberation Army.

Lip-Bu Tan, the man chosen to lead Intel, the U.S.'s largest chip maker, has invested in hundreds of Chinese tech firms, including at least eight with links to the People's Liberation Army, according to a Reuters review of Chinese and U.S. corporate filings.

The appointment last month of Tan, one of Silicon Valley's longest-running investors in Chinese tech, as CEO of a company that manufactures cutting-edge chips for the U.S. Department of Defense raised questions among some investors about the extent of his ongoing involvement with businesses in China.

Reuters' review found that Tan controls more than 40 Chinese companies and funds as well as minority stakes in over 600 via investment firms he manages or owns. In many instances, he shares minority stake ownership with Chinese government entities.

Several investors interviewed by Reuters expressed concern that the scope of Tan’s investments could complicate the task of reviving Intel. Along with Taiwan Semiconductor Manufacturing Co and Samsung Electronics Co, Intel is one of three companies in the world making the most advanced computer chips, and the only one based in the U.S.

"The simple fact is that Mr. Tan is unqualified to serve as the head of any company competing against China, let alone one with actual intelligence and national security ramifications like Intel and its tremendous legacy connections to all areas of America’s intelligence and the defense ecosystem," said Andrew King, a partner at venture capital firm Bastille Ventures. King said neither he or his fund have investments in Intel.

But some see Tan's years of experience investing in startups in China as key competencies to revive the flagging American icon.

"He was at the top of my list and most investor's lists of who they wanted," Bernstein analyst Stacey Rasgon said. "He's a legend and he's been around forever."