Could Silicon Valley's Indian CEOs Get the Intel Treatment?

Trump's move to target Intel CEO Tan Lip-Bu over his past Chinese affiliations is a warning sign.

- Mihir Sharma

According to US President Donald Trump, the rise of Intel CEO Tan Lip-Bu is "an amazing story." That is as much payoff as Mr. Tan can expect from his emergency meeting with Mr. Trump, who last week had demanded he "resign, immediately" because he was "highly conflicted."

We do not know if Intel will be able to convince the administration to view its CEO with less disfavor. Some in Washington are concerned about the Malaysian-born Tan's long history supporting and investing in the Chinese tech sector. And questions about how Intel intends to live up to government controls on the export of high-end technology under his leadership are, given this history, not unreasonable.

Nevertheless, it is a problematic precedent. That should worry Silicon Valley's powerful Indian diaspora in particular.

Take a step back and ask yourself: Is there anything inherently questionable about a tech firm appointing a CEO with an eye for innovative and effective start-ups? At his venture capital firm Walden International, Mr. Tan invested in more than 100 Chinese companies, including an early bet on Semiconductor Manufacturing International Corp (SMIC). Normally, this would be a count in his favor.

The problem is a fear, both in Washington and in Silicon Valley, that the US and Chinese tech ecosystems are not complements but rivals. This was not the case in 2001, when Walden put money in SMIC. But it is certainly the general feeling today.