Arm China removes CEO and reveals inside story: Wu Xiong Angjian Investment Company competes with Arm

At noon on June 20th, Beijing time, according to foreign media reports, people familiar with the matter revealed that the reason why Arm Ltd., a chip designer of SoftBank Group, dismissed Wu Xiong'ang, CEO of the Chinese joint venture, was because Arm Ltd. found that it had established an investment company. Want to compete with Arm Ltd.'s business in China.

The person familiar with the matter, who asked not to be named, stated that Arm China CEO Allen Wu has established a fund called Alphatecture, which aims to invest in startups that use Arm technology. For a chip company, it is common and legal to use the investment department to provide financial assistance to fledgling startups. But Wu Xiong's problem is that Arm Ltd. and its partner HOPU Investment Management Co. have established such a fund. According to people familiar with the matter, Wu Xiong's actions put him and his employer on the opposite side of direct competition.

A document reviewed by Softbank Chairman Sun Zhengyi, Arm Ltd. CEO Simon Segars and Hopu Investment Management Chairman Fang Fenglei also revealed why Wu Xiong's dismissal. This document details the breach of contract and the decision to establish a fund. Arm Ltd. and Hopu's previous explanation of Wu Xiong's dismissal was that after the investigation found that he violated the regulations and there was a conflict of interest, he decided to dismiss him, but did not specify specific details.

After the incident, Arm Ltd. and Wu Xiong'ang had an open and fierce conflict. Wu Xiong'ang refused to give in, and used Arm China's official WeChat to promote his views. As the legal representative of Arm China, Wu Xiong'ang holds the company's registration documents and corporate seal. Replacing the legal representative requires holding a company seal, and Wu Xiong'ang refused to give up. Arm Ltd. and Hopu can decide through the court, but this process may take years.

Wu Xiong'ang and Arm China did not respond to requests for comment, and apart from the earlier recall statement, Arm Ltd. and Hopu also declined to comment.