back to article Arm wrestle round two: Chinese outpost says it's fired the replacement CEO foisted on it by HQ

A spat between chip designer Arm and its Chinese business escalated yesterday after Arm China said it had fired one of the people that the company's headquarters had promoted to be interim CEO. The drama began on Tuesday when Arm's Cambridge headquarters said that its board had dismissed Arm China CEO Allen Wu and replaced him …

  1. Mark Exclamation

    And this is exactly why we can no longer trust China as a business partner. It is time the world started moving manufacturing out of China. Bringing it back home would be best, but spreading it around would suffice. It will be difficult and expensive, but we have to start now.

    1. Anonymous Coward
      Anonymous Coward

      And this is exactly why we can no longer trust China as a business partner.

      Why? Because ARM sold 51% of their Chinese subsidiary to someone else, and yet they still expect to be able to make decisions like choosing the CEO?

      If this had been a US subsidiary would you have made the same comment?

      1. Yet Another Anonymous coward Silver badge

        >If this had been a US subsidiary would you have made the same comment?

        BAe systems (ie BAe America) is 100% owned by BAe and yet they have no say in how it's run and no visibility to its business because the USA will only allow US companies to build its vertical take off aircraft

    2. iron Silver badge

      You are Donald Trump and I claim my £10.

    3. Chris the bean counter Bronze badge

      Don't bother most of the people on this forum hate Trump with such a passion they don't care about the evils Xi and the CCP commit.

      They are more concerned about the latest linux update than Democracy

      1. martinusher Silver badge

        Hate Trump?

        Come on, its nothing to do with 'hating' Trump and 'liking' Xi.

        As an American citizen I have certain negative opinions about Trump, opinions which are shared by a large number of my fellow citizens. His hard core of supporters regard this as 'hate' and cite this reason why he's an incompetent clown is merely that people like me don't worship the very ground he steps on. The rest of us count the days off until November.

        Xi doesn't affect us in any way, shape or form. China is an independent country that's become a formidable competitor for markets that we've been used to controlling. Our response hasn't been to up our game but instead spend all our effort and resources on trying to bring them down short of full scale nuclear war. This is a sign of weakness -- the more effort we spend on this the further behind we will get.

        1. Clunking Fist Bronze badge

          Re: Hate Trump?

          "Xi doesn't affect us in any way, shape or form. " Lol you are Xi himself & I claim my GBP10.

  2. David 132 Silver badge
    Facepalm

    Welcome to China, ARM

    What's that saying? "If you sup with the Devil, be sure to use a long spoon".

    Hands up anyone who's surprised that this happened?

  3. IneptAdept

    This is how corporates work

    This is not just China

    Many years ago a company I worked with setup a similar working relationship with an American company

    After 6 months they started ignoring the board in the UK and within a year they had lo led us out our own systems and stole a lot of IP

    Enter a 5 year court battle (don't know what happened as I had left) but I can assume it didn't end well as the company is no longer solvent

  4. elkster88
    Terminator

    First thing I thought of

    51 > 49.

    If ARM wanted to retain control of their China operations, perhaps they should have made the cut on the _other_ side of 50 percent.

    1. Dan 55 Silver badge
      Coat

      Re: First thing I thought of

      I knew this wasn't going to end well when they called it big.LITTLE instead of BIG.little.

    2. big_D Silver badge

      Re: First thing I thought of

      It sounds like they have the support of Hopu Investment, if they have more than 2%, that is a majority.

      This is internal company politics and we are only getting the public facing bit of the iceberg.

    3. x 7

      Re: First thing I thought of

      51>49

      Chinese law prevents companies having a majority owned overseas, and also prevents overseas based companies operating in China

      Basically you can only operate via a majority-chinese owned (and based) JV, and you must make significant transfer of technology to the JV. Essentially the Chinese expect to be able to control the company and steal the technology in the event of a dispute or tension.

      And at the moment there is a big dispute between the UK and China........you can expect this to end with the JV declaring UDI and ARM forcibly losing control with all the licencing revenue staying in China. You can expect other technology businesses to be attacked in the same way.

      Its the beginning of a long game

      1. NetBlackOps Bronze badge

        Re: First thing I thought of

        It's about the availability of ARM chips in the PRC, pure and simple.

  5. This post has been deleted by its author

  6. Peter Danckwerts

    The mistake was selling ARM to SoftBank. It was SoftBank which sold off ARM China. I don't believe in protecting every British company from falling into foreign hands but ARM is of such strategic importance that I think the sale should have been blocked.

    1. BenDwire Silver badge

      Absolutely right. But you'll never stop people deciding to sell up and take the money from the highest bidder.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2020