Intel CEO Lip-Bu Tan said recent suspicions about its past dealings with China were "misinformation" and that the company was working to resolve the matter with the Trump administration. The U.S. government is targeting its chief executive as the chipmaker struggles to save its manufacturing operations amid a protracted crisis.
Chen Liwu confirmed in a letter to Intel employees that the company is meeting with the Trump administration to address allegations about his ties to China. He also reiterated his commitment to strengthening the United States' position in the semiconductor industry.
The controversy began when Republican U.S. Senator Tom Cotton, citing national security concerns, questioned the Intel board of directors about Chen Liwu's large investments in Chinese chip companies and whether Cadence violated U.S. export laws related to China during his tenure as CEO.
Cadence Design Systems recently admitted to knowingly exporting restricted electronic design automation tools and semiconductor intellectual property to the National University of Defense Technology in China between 2015 and 2021. Chen Liwu led the company from 2008 to 2021 and served as executive chairman until May 2023.
Chen Liwu has also invested more than $200 million in advanced Chinese chip manufacturers through his venture capital firm Walden Capital. According to Reuters, none of these companies are included in the U.S. ban list related to Chinese military enterprises. Despite this, President Trump demanded that Chen Liwu resign immediately.
Chen said in the letter that during his four-decade career, he has always adhered to the highest legal and ethical standards and built relationships around the world. He also emphasized Intel's critical position as the only U.S. company producing advanced chips as it competes with rivals from Taiwan and South Korea.
Chen Liwu pointed out that he has lived in the United States for more than 40 years and is committed to maintaining the security and economic strength of the United States. He was born in Malaysia and educated in Singapore and the United States.
He took over as CEO of Intel after billions of dollars in losses forced Pat Gelsinger to resign. Intel's stock price has fallen sharply in recent months, its credit rating has dropped to near junk status, and the future of its semiconductor manufacturing business has been uncertain.
While Chen has pledged to continue Gelsinger's investment in Intel's 18A and 14A process nodes, designed to compete with TSMC's 2nm node, he may cancel one or both of the projects if they fail to attract customers.