US Senator Tom Cotton has put Intel CEO Lip-Bu Tan on the hot seat, asking the board to explain how the new CEO's long-running financial ties to Chinese tech firms square with the company's critical position in the US semiconductor supply chain. In a letter to Intel Chair Frank Yeary, released on Wednesday, Cotton cites a probe that found Tan, through his venture firm, Walden International, still holds stakes in more than 600 Chinese companies, including chip startups that supply China's military. The Senator wants written proof that Tan has fully divested from any outfit on the Treasury's blacklist, warning that "Intel is required to be a responsible steward of American taxpayer dollars and to comply with applicable security regulations. Mr. Tan's associations raise questions about Intel's ability to fulfill these obligations."

While there is no ban on Walden International VC company from investing in Chinese startups, Intel is enjoying a significant boost from US funds. In September, Intel was awarded $3 billion in direct funding from the Biden administration under the CHIPS and Science Act for the Secure Enclave program. Hence, US senators are now questioning whether the new CEO has fully divested from its China commitments, allowing him to focus solely on the US-centric business. Troubles for Intel keep piling up , and the company is currently facing its toughest period, so we have to see how the board and the CEO plan to address these issues.