Arm China is asking the Beijing government to step into the row between Arm UK and Arm China.
Arm UK sacked the chairman and CEO of Arm China, Allen Wu, but Wu refused to go.
Wu is is said to have hired his own security guards and won’t let representatives of the Arm China board or Arm Ltd on the Arm China premises.
The statement goes on to say that Arm UK harassed Arm China employees and pressured Arm China customers to cancel or modify contracts.
The statement says that Arm China grew revenue by more than 50% in 2019 and it now accounts for 27% of Arm’s total licensing revenue.
“Arm China is devoted to empowering the foundation of China’s semiconductor industry,” the statement continues, “this joint venture plays a strategic role in China’s chip industry in the past two years amid the dynamics of the international chip competition landscape.”
“Hopu (an Arm China investor) and some of Arm’s board of directors even started contacting the joint venture’s clients,” continues the statement, “they even threatened to revise or cancel the existing contracts with the joint venture. Moreover, some of the board of directors harassed and threatened employees at the joint venture.”
Arm UK has issued a ststement in response:
“Arm remains committed to enabling semiconductor innovation in China through the Arm China joint venture and its employees. Unfortunately, in the weeks following the legally valid resolution to remove Allen Wu as CEO of Arm China on June 4 by the Arm China Board of Directors, 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. Allen’s focus on his own self-preservation has also put China semiconductor innovation at risk as he has attempted to block the critical communication and support our China partners require from Arm for ongoing and future chip designs.”
“The Arm China board is working closely with government authorities to peacefully resolve the current issue and ensure Allen Wu is unable to commit further harmful or disruptive actions against Arm China employees and partners moving forward. Arm is thankful for the ongoing support of our Chinese partners and dedicated Arm China employees who continue to serve our customers despite Allen’s efforts to disrupt the growth of Arm China.”
Arm’s owner Softbank has hired Goldman Sachs to sell all or part of the company.
Source: electronicsweekly
