ARM Struggles to Remove ARM China Chief

Company: We fired an executive.
The executive: No, I’m actually still in control.

That’s the short version of what’s happening at ARM, the SoftBank-owned British firm that designs chips for most mobile devices and the world’s top supercomputer. The company recently said it fired ARM China CEO Allen Wu for “serious irregularities” and “conflicts of interest,” the FT reports. But to quote The Wolf of Wall Street, Wu is “not [redacted] leaving.”

Legal ARMor: Since Wu is ARM China’s legal rep and has the company’s seal, he’s technically still in charge, per Chinese law. “He knows he will eventually be removed. But this is his weapon to get a separation agreement,” a source told the FT. To formally remove Wu, SoftBank needs to fight a protracted legal battle and/or use the political connections of Hopu, a Chinese private equity firm that owns 51% of ARM China.

Zoom out: ARM China contributed a fifth of ARM’s total sales in 2018, and ARM IP is in 95% of all semiconductors made in China, according to SoftBank. SoftBank and China need ARM China, which could affect how this dispute is resolved.