ARM Faces a Boardroom Revolt as It Seeks to Remove the CEO of Its Chinese Joint Venture
ARM, the British silicon ship designer backed by SoftBank, is currently embroiled in a nail-biting boardroom conflict, equipped with an equally appropriate dramatic flareup.
To wit, ARM issued a statement on Wednesday, disclosing that the board of its Chinese joint venture – ARM China – has approved the removal of the incumbent chairman and CEO, Allen Wu. Bear in mind that the British chip designer was purchased by the Japanese behemoth, SoftBank, in 2016 for £24.3 billion. ARM currently holds a 49 percent stake in its Chinese JV, with a consortium of investors led by the Chinese equity fund, Hopu Investment, retaining the residual 51 percent stake.
However, just hours after the initial statement by ARM, its Chinese JV issued a contradictory statement on Weibo, reiterating that Allen Wu "continues to serve as its CEO" and that ARM China was operating as usual.
See also: SoftBank's Arm Says China CEO Fired for Major Irregularities
"Following a whistleblower complaint and several other current and former employee complaints, an investigation was undertaken by Arm Limited," the company said in its latest statement, jointly issued with shareholder Hopu Investment. "Evidence received from multiple sources found serious irregularities, including failing to disclose conflicts of interest and violations of the employee handbook." Wu didn't respond to emails and a message sent via his LinkedIn profile seeking comment.
SoftBank's China Chip Venture Rejects Accusations Against CEO
Also at EE Times and TechNode.
(Score: 3, Informative) by Arik on Thursday June 11 2020, @10:38PM (3 children)
They'll either lose control of it, or they'll do what the CCP tells them.
If laughter is the best medicine, who are the best doctors?
(Score: 3, Informative) by PartTimeZombie on Thursday June 11 2020, @11:42PM (2 children)
That's because those are the terms of trade in China. It's the way things have been for at least 30 years and no-one is surprised by it, because the Chinese didn't lie to anyone who wanted access to the Chinese labour force, or the Chinese market.
(Score: 3, Funny) by Anonymous Coward on Friday June 12 2020, @12:22AM
The West is waking up https://en.wikipedia.org/wiki/Inter-Parliamentary_Alliance_on_China [wikipedia.org]
Some people said it should have been after Tiananmen, in the 90s, others after noticing the 49-51 rule was staying for ever, others after the massive sales of business to China companies... but better late than never. Now we will see if the politicians can rein the business men ("laissez faire" must mean something like "ass rape by cactus" in Chinese), or their blind greed will be fatal for the West.
(Score: 1) by fustakrakich on Friday June 12 2020, @01:44AM
It's the way things have been for at least 30 years...
48 years. How many are surprised it lasted this long? But the game's still running, make sure you have an agile portfolio
La politica e i criminali sono la stessa cosa..