SoftBank’s Arm says China joint venture replaces Chief Executive

Platform News: Japan's SoftBank

SoftBank Group Corp-owned chip technology firm Arm Ltd said on Wednesday the chief executive officer of its China joint venture, Allen Wu, has stepped down and been replaced.

KEY POINTS:

  • SoftBank owned Arm Ltd has announced that the CEO of its China joint venture, Allen Wu, has stepped down
  • Arm China is a joint venture between British chip designer Arm Ltd and Chinese private equity firm Hopu Investments
  • Business is based in the Chinese city of Shanghai

Arm Ltd said Arm China’s board of directors has appointed Ken Phua and Phil Tang as Arm China’s interim co-CEOs to replace Wu, who headed the joint venture as chairman and Chief Executive Officer.

Arm China is a Shanghai-based joint venture between British chip designer Arm Ltd and Chinese private equity firm Hopu Investments.

Wu did not immediately respond to a message sent to his LinkedIn account, and a Hopu spokesman did not immediately respond to a request for comment.

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Arm China, which generates revenue by licensing chip architecture to Chinese companies, was established in 2018 when SoftBank sold a 51% stake in Arm Ltd’s Chinese subsidiary, Arm Technology (China) Co Ltd, to a group of Chinese investors. Softbank acquired Arm in 2016 for $32 billion.

The personnel change comes as the United States and China remain caught in a spat over technology. Last month, the Department of Commerce placed additional restrictions on smartphone maker Huawei Technologies that would prevent certain American companies from supplying to it.

Last October, the UK company said it would continue to supply its designs to Huawei after ruling they did not breach US rules.

Via our content partners at Reuters. Reporting by Josh Horwitz in Shanghai and Stephen Nellis in San Francisco. Editing by Tom Hogue and Stephen Coates.

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