Intel Corporation‘s (NASDAQ:INTC) hiring of veteran venture capitalist Lip-Bu Tan as CEO has sparked a new controversy among semiconductor investors, including those holding exposure to chip-focused ETFs. Though Tan is generally considered a legend in Silicon Valley with decades of investing in cutting-edge technology, his deep investments in Chinese technology companies, including those associated with the People’s Liberation Army (PLA), are coming under scrutiny—raising red flags for investors who are geopolitics- and national security-sensitive.

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A Web Of Cross-Border Investments

Tan’s portfolio holds early stakes in China’s Semiconductor Manufacturing International Corp (SMIC)—currently sanctioned by the U.S.—as well as joint ownership with state-backed players such as China Electronics Corporation and other Chinese government funds, per Reuters. His existing dominance of over 40 Chinese firms and minority interests in over 600 others, many of which are connected to military and surveillance technology, is raising concerns.

Despite Intel’s assertion that Tan has made conflict of interest disclosures, ETF investors are keeping a close watch. Intel is not simply another chipmaker—it’s a key partner on billion-dollar U.S. Department of Defense contracts, so its leadership comes under particular scrutiny.

ETFs In Focus

Intel’s narrative is very much tied to the performance of large-cap semiconductor ETFs. The iShares Semiconductor ETF (NASDAQ:SOXX) and VanEck Semiconductor ETF (NASDAQ:SMH) each have substantial Intel exposure, whether directly or within their weighting toward legacy U.S. chip companies. A sentiment change toward Intel could impact fund flows, specifically among institutional clients with ESG, national security, or geopolitical risk filters.

SMH has declined 8.3% in the past month, whereas SOXX has declined 12.7% over the same period.

Looking Ahead

Tan leads Intel, which confirms compliance with disclosure standards, though growing geopolitical risks may influence sentiment in Intel-heavy ETFs.

In an era where chipmakers are strategic assets, leadership blends innovation and profits with trust, partnerships, and geopolitics—shaping new opportunities for Intel and ETF investors.

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