As tensions grow between the United States and China, Intel CEO Lip-Bu Tan is under increased scrutiny due to his long-term investment activities in China. These investments were made primarily through his venture capital firm Walden International and two Hong Kong-based entities — Sakarya Limited and Seine Limited.
Investigations by Reuters, supported by data from Chinese corporate records, uncovered a wide network of Chinese business links. These ties include several firms with connections to China’s military and surveillance sectors, some of which are under U.S. sanctions for national security or human rights issues.
SMIC and Ties to China’s Military Technology
Tan founded Walden International in 1987 and was an early backer of Semiconductor Manufacturing International Corporation (SMIC) — China’s largest semiconductor foundry. He served on SMIC’s board from 2001 until 2018. In 2020, the U.S. government sanctioned SMIC over its reported links to China’s military. Tan officially stepped down from all SMIC roles in 2021, according to the U.S. House Select Committee on the Chinese Communist Party.
Despite his exit, Walden International continues to be financially involved in more than 20 Chinese companies and investment funds, including projects tied to government-supported tech hubs in Hangzhou, Hefei, and Wuxi.
Military and Surveillance-Linked Investments
Corporate records in China show Walden has co-invested in at least six projects with China Electronics Corporation (CEC), a major military supplier for the People’s Liberation Army. CEC was sanctioned in 2020 under a U.S. executive order that restricts transactions with companies linked to the Chinese military.
Among Walden’s joint ventures is QST Group, a firm specializing in sensor technology. Ukrainian authorities claim that components from QST were recovered from Russian drones in the ongoing conflict with Ukraine.
Another company, Intellifusion, focuses on facial recognition and surveillance technology. It has been blacklisted by the U.S. Department of Commerce for alleged involvement in human rights abuses in the Xinjiang region. Walden holds a 2% stake in this company.
Walden also maintains over 5% ownership in Wuxi Xinxiang Information Technology Co. Ltd, a supplier to Yangtze Memory Technologies Co. (YMTC) — a company added to the U.S. Commerce Department’s trade blacklist in 2022 and later flagged by the Pentagon as being tied to China’s military.
Sakarya and Seine: Managing a Vast Chinese Portfolio
Tan is the sole listed owner of Sakarya Limited, a Hong Kong-based holding firm. Through Sakarya, he holds control in 38 Chinese companies, including Huaxin Yuanchuang (Qingdao) Investment Management Co., Ltd., Walden’s main operating body in mainland China. These connections link Tan to over 500 Chinese firms, spanning industries such as semiconductors, logistics, AI, and surveillance technology.
The second holding firm, Seine Limited, is controlled by Walden Technology Ventures III LP. Seine has stakes in at least 68 Chinese companies. This includes Dapu Technologies, which has been identified by the U.S. House Committee as a contractor to China’s military, and HAI Robotics, a company reported to have submitted bids for military contracts and worked with surveillance institutions.
HAI Robotics confirmed that Seine owns an 8.3% share in the company but denied any military affiliations, It states that its operations are strictly focused on civilian warehousing and that it complies with legal standards in China, the U.S., and Europe.
Ethical and Strategic Implications
Tan’s reputation as a successful investor is now intertwined with ongoing debates about national security, technology transfer, and ethical venture capital practices. As U.S. authorities increase oversight of cross-border investments in sensitive technologies, Tan’s connections have raised questions about the role of private capital in advancing foreign state-linked tech development.
Though the U.S. Department of Commerce and Pentagon have not issued specific comments on Tan’s investment activities, recent sanctions, and blacklists point to a tougher stance on so-called “dual-use” technologies — products that could be used for both civilian and military applications.
Walden International declined to respond to media inquiries. Other firms tied to the matter, including Sakarya Limited, Seine Limited, and their Chinese partners, have not provided official comments.
Looking Forward
Tan’s involvement in China’s tech ecosystem began during a time of broader global cooperation in the tech industry. However, amid today’s geopolitical challenges, investors with extensive Chinese exposure are facing increased examination.
As the U.S. government takes steps to reduce reliance on Chinese technology in key sectors, industry observers suggest Tan’s history could become a point of focus for regulators, especially considering Intel’s prominent position in the global semiconductor industry.
Whether or not these connections will influence Intel’s future strategies or regulatory standing remains to be seen. However, the extent of Tan’s China-linked financial dealings is now at the center of international attention.
