Arm falls out with Arm China

Arm and Arm China have fallen out over the management of the Arm China unit.

Yesterday Arm said that Arm China CEO Allen Wu was being dismissed for “serious irregularities including failing to disclose conflicts of interest and violations of the employee handbook,” and that Wu would be replaced by Phil Tang and Ken Phua.

Arm China responded: “Arm China is an independent entity and legally registered in China. According to all the laws and regulations, Allen Wu will continue his responsibility and role as Chairman and CEO.”

Today, Arm China says that Phil Tang was sacked on May 26 due to “serious irregularities..”

In 2018, Arm sold 51% of its China operation to Chinese investors for $775 million and this operation became known as Arm China.

Arm China cannot license US-origin Arm technology to companies on the US Entity List including Huawei, but it can license technology which has been developed outside the US.