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SoftBank’s plan to list Arm after failed Nvidia deal under a cloud amid China boardroom dispute
- In a boardroom battle that proved a spectacle for the chip industry, Arm has been trying to remove Allen Wu as Arm China CEO and chairman since June 2020
- Exclusion of Arm China could slash more than 20 per cent off the IPO’s valuation, given the Chinese operation’s contribution and future growth potential
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A lingering boardroom tussle between Arm and its Chinese joint venture is casting a shadow over SoftBank’s plan to list the British chip IP and design firm after a proposed US$40 billion deal with Nvidia fell apart amid regulatory pressure.
Analysts said Arm’s IPO plan could hit a snag if issues around control of Arm China, which contributes one fifth of worldwide revenues, cannot be resolved.
It is unclear whether Arm will be able to wrest control of its China joint venture, in which it owns 49 per cent, from Allen Wu, the CEO and chairman of Arm China.
In a boardroom battle that proved a spectacle for the chip industry, Arm has been trying to remove Wu from his dual position at Arm China since June 2020. Wu ignored Arm China’s boardroom vote of 7 to 1 to oust him, and he retains control of the company’s day-to-day operations through his possession of the corporate seals and other leverage.
Wu remains the legal representative of the joint venture, which is registered in Shenzhen, and he fired and sued three executives Arm had named to replace him.
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