The situation has escalated to a point where Mr. Wu is “propagating false information and creating a culture of fear and confusion among Arm China employees,” says Arm in a statement for Bloomberg. “Allen’s focus on his own self-preservation has also put China semiconductor innovation at risk as he has attempted to block the critical communication and support our China partners require from Arm for ongoing and future chip designs.” It is also said that Mr. Wu has refused to hold an event meant to connect Chinese chipmakers to Arm Ltd. He has hired personal security so no Arm Ltd. representatives can get to him. It is a waiting game to see how well Arm Ltd. can manage this situation, so we have to wait and see.
Arm Ltd., owned by Softbank, has a division specially tailored for China, called Arm China. That division used to operate in Shenzen and it cooperated with Chinese customers. Today in a surprising turn of events, we have information that UK-based Arm Ltd. accuses Arm China ex-CEO of blocking its business, as the Chinese division goes rogue. The Arm China division used to have Mr. Allen Wu as its CEO, who was fired back in June. However, Mr. Wu has refused to cooperate and refused to step down from his position, remaining in control of the business without the consent of UK-based headquarters.