Billionaire Chip Investor Caught in US-China Storm — And Trump Wants Him Out
For over 30 years, Lip-Bu Tan was one of the biggest believers — and biggest winners — in China’s economic rise. His investment bets were so obvious they made venture capitalists around the world, especially in the US, millions.
From San Francisco, Tan built Walden International, a venture firm that poured more than $5 billion into 600+ companies worldwide. Over 100 of those investments were in China, backing little-known startups like Semiconductor Manufacturing International Corp. (SMIC) — now the country’s largest chipmaker — where Tan sat on the board for 15 years.
But times have changed. With US-China tensions at a boiling point, Washington has been cutting off Beijing’s access to advanced technology and tightening the screws on US firms doing business there. When Tan joined Intel Corp.’s board in March, he even agreed to sell off his Chinese holdings, according to someone familiar with the deal.
Still, his past ties to China won’t stop haunting him. US lawmakers — and now Donald Trump — are calling him out. Trump blasted Tan on social media, calling him “highly conflicted” and urging him to quit.
Intel is standing by its man, saying Tan and the board are “deeply committed to advancing US national and economic security interests.” Tan himself finally responded late Thursday in a letter to staff: “We are engaging with the Administration to address the matters that have been raised and ensure they have the facts.”
Walden: Betting on Chips Before It Was Cool
Tan’s journey began in the 1980s at Walden Ventures. He soon spun off Walden International to chase global opportunities.
Born in Malaysia and fluent in Mandarin, Tan funneled investments into East Asia, including China. While many VCs shunned the risky chip sector, Tan went all in — betting that even Intel could face startup challengers.
Today, Tan remains chairman of Walden International and is founding managing partner of Walden Catalyst Ventures, investing in the US, Europe, and Israel. He also plays the same role at Celesta Global Capital.
His China bets have drawn scrutiny before. In 2023, the House Select Committee on the Chinese Communist Party sent Walden a letter demanding details on its Chinese investments.
SMIC: China’s Chip Giant
Founded in Shanghai in 2000, SMIC was China’s early hope for homegrown chip-making power.
Walden International invested heavily, joining a $630 million funding round in 2003. Tan served as a director until 2018. SMIC once counted Qualcomm among its clients and tried to rival Taiwan Semiconductor Manufacturing Co.
That dream hit a wall in 2020 when the US Commerce Department added SMIC to the “entity list” over alleged military ties. The move cut it off from crucial American tech. Now, SMIC works closely with Chinese tech titans like Huawei.
Cadence: From Board Member to CEO
In 2008, Tan took the reins at Cadence Design Systems in San Jose, California, first as interim head, then as CEO in 2009. He’s widely credited with reviving the company, before stepping down to executive chairman in 2021.
But this year, Cadence made headlines for the wrong reasons. In late July, the US Justice Department announced a plea deal costing Cadence over $100 million in fines. The DOJ said employees in China concealed the identity of a blacklisted client — the National University of Defense Technology to keep doing business.
That university, banned since 2015, is linked to nuclear explosion simulations in China. Cadence received a 20% fine reduction for partial cooperation. Tan wasn’t named in the DOJ’s statement.