Arm: Wu Xiong'ang refused to resign and tried to block Chinese chip companies and Arm's technology

Bloomberg reported that in response to an open letter from Arm China employees, Arm said that the company adheres to its beliefs and commitments, supports Arm China and its employees, and continues to promote innovation and development of China's semiconductor industry.

In early June, Arm experienced the much-talked-about "leadership change" incident. Investors Arm and Hillhouse Capital joined forces to remove the chairman and CEO of Arm's joint venture, ARM China. However, some investors of the company believed that the board's resolution was controversial and resorted to legal means to resolve it.

Arm said in a statement that Wu Xiong'ang refused to resign and spread false information, causing great panic and distress within Arm China. Wu Xiong'ang's excessive focus on self-protection also put China's semiconductor innovation at risk. Wu Xiong'ang even tried to prevent Chinese semiconductor chip design companies from communicating and supporting Arm with necessary key technologies.

According to a person familiar with the matter, Wu Xiong'ang has hired security personnel to prevent Arm representatives or the board of directors from entering Arm China, and has rejected previously agreed cooperation activities between Arm and Chinese semiconductor chip manufacturers and refused to negotiate.

Yesterday, ARM China issued another open letter, pointing out that some directors of Hopu Investments and Arm UK have recently begun to send people to frequently contact the joint venture's customers; and threatened to modify or cancel existing contracts with the joint venture; what's worse, some directors even called the joint venture team to threaten and harass individual employees.

In this regard, ARM China calls on all shareholders and the board of directors of ARM China to participate in the company's strategic decision-making in a legal and compliant manner, not to directly interfere with the company's normal operations, and not to harm the legitimate rights and interests of employees.

Both sides argue that the longer things drag on, the more severe the impact on China's chip industry, which relies on Arm technology, will be. They have also urged the Chinese government to step in and resolve the disagreement.