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U.S. Senator Tom Cotton Questions Intel CEO Lip-Bu Tan’s Ties to China in Letter to Board Chair

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Republican Senator Tom Cotton sent a letter on Wednesday to Intel’s board chair, Frank Yeary, raising concerns about new CEO Lip-Bu Tan’s connections to Chinese firms and a criminal case linked to Tan’s former company, Cadence Design. Cotton questioned Intel’s board about its awareness of subpoenas issued to Cadence during Tan’s leadership and asked what steps were taken to address potential security risks.

The letter probes whether Tan was required to divest from Chinese chip companies with ties to the Chinese military or Communist Party, given Intel’s involvement in the U.S. government’s Secure Enclave program — an initiative under the Biden administration to secure microelectronics supply for national defense. Cotton emphasized Intel’s responsibility to safeguard American taxpayer funding and questioned if Tan’s affiliations might compromise Intel’s national security obligations.

Intel responded by affirming its and Tan’s commitment to U.S. national security and pledged to address the senator’s concerns directly.

Earlier reporting revealed that between 2012 and 2024, Tan or venture funds he managed invested at least $200 million in hundreds of Chinese advanced manufacturing and chip firms, some linked to China’s military. While a source said Tan had divested some holdings, public databases still listed many investments as current.

In related news, Cadence Design agreed last week to plead guilty and pay over $140 million to settle charges for selling chip design software to a Chinese military university allegedly involved in nuclear blast simulation. These sales occurred under Tan’s tenure as CEO (2008–2021) and executive chairman until 2023.

Cotton’s letter cited the Reuters investigation into Tan’s Chinese ties and underscored the heightened scrutiny Intel faces due to its federal funding under the Secure Enclave program.

Intel CEO Considers Major Shift in Foundry Strategy, Focuses on 14A Chipmaking to Compete with TSMC

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Intel’s new CEO Lip-Bu Tan is contemplating a significant change to the company’s contract chip manufacturing business, potentially abandoning the costly 18A process developed under his predecessor to focus on the newer 14A technology. This move aims to better compete with Taiwan Semiconductor Manufacturing Co (TSMC) and attract major clients like Apple and Nvidia, sources familiar with the matter told Reuters.

The 18A process, which Intel invested billions in, is seen as losing appeal among prospective customers. Shifting focus away from it could lead to a substantial financial write-off for Intel, possibly costing hundreds of millions or even billions of dollars. Intel confirmed it would continue producing chips using 18A for its own internal designs, including the “Panther Lake” laptop chips planned for 2025, as well as fulfilling existing contracts with Amazon and Microsoft.

Tan, who took over in March, has quickly moved to cut costs and reshape Intel’s direction amid years of falling behind in chip technology. The 18A process, which features new transistor designs and energy delivery methods, was intended to rival TSMC’s leading-edge technology but is now considered roughly comparable to TSMC’s earlier N3 node.

By emphasizing 14A, Intel hopes to offer a more competitive foundry service and win contracts from major chip designers currently reliant on TSMC’s manufacturing. The company is customizing 14A to client needs and planning a strategic discussion with its board as soon as this month, with a final decision expected in the fall.

Intel’s move reflects the high stakes involved in regaining its manufacturing edge after a difficult period culminating in an $18.8 billion net loss in 2024. Tan has also revamped Intel’s leadership and streamlined management to improve agility.

While the strategy is still forming, the potential pivot marks one of Tan’s boldest efforts to restore Intel’s chipmaking leadership and profitability.

Intel Hires Chip Industry Veterans to Drive CEO Tan’s Turnaround Strategy

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Intel has announced the hiring of three prominent chip industry veterans on Wednesday, as part of CEO Lip-Bu Tan’s broader plan to restructure leadership and revive the company’s competitiveness. The move aligns with Tan’s push to streamline operations, elevate engineering focus, and boost customer satisfaction in a difficult market environment.

The newly appointed executives — Srinivasan Iyengar, Jean-Didier Allegrucci, and Shailendra Desai — will take on major engineering and technical roles within the company. These hires reflect Tan’s determination to prioritize technical leadership and innovation as Intel seeks to rebuild market confidence and strengthen its foundry ambitions.

  • Iyengar, formerly of Cadence Design Systems, will lead a newly created customer engineering center and report directly to Tan.

  • Allegrucci, previously with Rain AI, will oversee the development of AI System-on-Chip (SoC) engineering.

  • Desai, who joins from Google, will spearhead new AI chip architecture initiatives. Both Allegrucci and Desai will report to Sachin Katti, Intel’s Chief Technology and AI Officer.

Tan, who took the helm in March 2025, has been making bold changes to Intel’s organizational structure, including reducing bureaucracy by flattening leadership layers. He has also restructured the sales team by promoting Greg Ernst, a longtime Intel executive, to Chief Revenue Officer, placing him in charge of global revenue operations.

“Greg, Srini, J-D and Shailendra are highly accomplished leaders… and they will each play important roles as we position our business for the future,” Tan stated.

In addition to executive hires, Intel also reshuffled its board, aiming to bring in more semiconductor-specific expertise. Three existing board members stepped down at the company’s 2025 annual meeting, clearing space for more industry-aligned oversight.

These changes come amid ongoing financial and competitive pressures for Intel, which has struggled to regain its edge against rivals like AMD, NVIDIA, and TSMC. With a renewed emphasis on AI innovation and foundry success, Tan’s leadership marks a decisive shift toward engineering-led transformation.