MRA It is taking steps to end the controversy surrounding its Chinese division, retaking its control and expelling its CEO from his position, whom he decided to fire in 2020 and who has clung to his position ever since, refusing to leave. His last, and perhaps definitive, measure for this is, according to the Financial Times, the Sending to the Government of China the necessary documentation to replace Allen Wuwhich is the name of the rebellious manager.
The British chip designer is going to propose to two replacements as CEOs of the company joint venture that has been created in China: liu renchen, government adviser and deputy dean of the Research Institute of Tsinghua University in Shenzen; Y Eric Chenwhich has been in charge of SoftBank’s negotiations, which owns the company, with Chinese government officials regarding the situation.
ARM has been trying to kick Wu out for two years, when he decided to ignore the vote of the board of directors of ARM’s China subsidiary, which by 7 votes to 1 decided to kick him out, and unilaterally took control of the company. According to sources close to the ARM China board, “negotiations have been going on for some time, and this is the proposed solution. But shipping is not the problem, but getting the authorities to authorize the solution«.
According to these sources, several previous agreements made to try to solve the situation have been broken at the last moment, so they ask for precautions, since «Whether Allen will be able to mess it up remains to be seen.either”. However, other sources close to the situation say that ARM’s move a few weeks ago to transfer the shares of its rogue joint venture in China to a special entity controlled by SoftBank has spurred Chinese officials to act, with the intention of keep ARM shares on the drive.
This would leave ARM with less than 10% of the division, compared to 47.3% today, which has caused unease among the company’s stakeholders in China. The appointment of a new Secretary of the Chinese Communist Party in Shenzen, Meng Fanli, who has accelerated the negotiations, begun several months ago, to remove Wu from ARM China, has also contributed to unblocking the situation.
