Recently, ARM has been in the spotlight as the subject of a potential acquisition by the US-based GPU brand, NVIDIA, from its current owner, Softbank. Unfortunately, the company has also been contending with what appears to be a case of mutiny from its division in China.
According to multiple reports, the company’s Shenzhen office, officially called ARM China, has reportedly gone rogue and the person leading the alleged rebellion is Allen Wu, the ex-CEO of the Chinese branch. For context, Wu was ousted by ARM back in June, after it was discovered that he had covertly set up an investing firm that would’ve put it in direct conflict with the company.
Sadly for ARM, Wu didn’t take being sacked with the decorum and tact expected of a CEO, and is both defying the order and still in control of ARM China’s businesses. Without the full consent from the UK office.
The situation has escalated to the point that Wu has even hired his own personal security and barred any ARM representatives or his board from entering the premises. Further, he has refused to host a planned event that would connect Chinese chipmakers with ARM. Despite him having sent out emails stating that he is open to talks and that no disruptions have taken place.
It is unclear, at this stage, how the drama between ARM’s UK office and ARM China will play out and as such, many key players and analysts are adopting a “wait and see” stance over the situation.
(Source: Bloomberg, SCMP, TPU)
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