Power struggle at China joint venture of chip designer Arm continues as CEO refuses to step down
- Arm’s board is continuing to work with the government to resolve the situation
UK-based chip design company Arm said on Wednesday that the head of its China joint venture, Allen Wu, is still refusing to relinquish his post despite a June 4 board decision to remove him following an internal investigation that showed he “put at risk” the interests of the company’s shareholders.
SoftBank Group Corp-owned Arm, which specialises in chip design software and whose clients include Huawei Technologies Co, said in an emailed statement that the board is continuing to work with the government to resolve the situation.
“Allen has refused to relinquish the company chop and step down, while propagating false information and creating a culture of fear and confusion among Arm China employees,” Arm said in a statement on Wednesday.
Arm also accused Wu of blocking “critical communication between Chinese chip design companies and Arm for technical support for ongoing and future chip designs, putting China’s semiconductor innovation at risk".
The power tussle at Arm China comes at a delicate time, as the British firm gets caught in the middle of US moves to cut off Western technology supplies to China’s dominant smartphone and telecommunications equipment maker Huawei, amid US charges that the Shenzhen-based company is a national security threat.
The joint venture was founded in April 2018 between Arm and a consortium led by Chinese equity fund Hopu Investment, Shum Yip Holdings, state-backed China Investment Corp, and Belt & Road projects-focused Silk Road Fund. Arm owns 49 per cent of Arm China, while the consortium holds the rest.