Arm, a world-renowned semiconductor company, made headlines in financial and technological media on Wednesday (June 10) on the news that Wu xiongang, the executive director and CEO of arm China, was removed. Within two days, the company and arm China (anmou China) issued a total of four statements about whether Wu xiongang was removed, arousing a lot of speculation.
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Today, the public relations team of arm headquarters and Wu xiongang have made the latest response. The incident is gradually becoming clear. The news points out that Wu xiongang was pushed to the forefront because of the contradictions among shareholders. A number of industry insiders said that the outside world should not make arbitrary conclusions, but the accusation made by arm against Wu xiongang was puzzling.
Arm's latest response: for individuals
In the morning of June 10, the 21st century economic report reported that Wu xiongang had been removed from his post, which took place a week ago and attracted great attention. In the morning, arm China quickly responded that Mr. Wu xiongang continued to perform his duties as chairman and CEO.
In the afternoon, arm company and Hopu Investment announced that the board of directors of anmou China decided to dismiss Mr. Wu Xiong on June 4. The reason given is that the evidence obtained from multiple channels shows that Wu xiongang has not disclosed to the company the conflict of interest he has constituted and the behaviors in violation of the company's standards.
On June 11, arm China issued a statement again, which not only denied all accusations made by arm company against Wu xiongang, but also said that the convening of the board meeting was not in accordance with the procedures. Tang Xiaoqi, the transitional CEO designated by arm company, was dismissed by arm China on May 26.
For a while, there were different opinions from the outside world.This morning, in response to the report that "arm is preparing for the listing process, Wu xiongang's dismissal is in the hope of bringing arm China's business back to the world". Arm denied that. He also stressed that this incident was aimed at Wu xiongang's failure to disclose to the company the conflicts of interest he had constituted and his personal behavior in violation of the company's standards. His actions have harmed the development of anmou China, the interests of shareholders and stakeholders.
Wu xiongang's internal letter response: I hope that the conflict between shareholders can be resolved legally and in compliance
Since arm company has made it clear that it is aimed at Wu xiongang, how does the party respond? Wu xiongang sent an internal letter to all the employees of arm China on June 11, which contained very important new information. In the internal letter, Wu xiongang first denied the accusations of arm company and Hopu investment. At the same time, he indicated that as the chairman and CEO of the company, he would work with the management team to operate independently in accordance with the law, eliminate the behaviors that interfere with the governance of the company and the board of directors, ensure the normal operation of the company, and provide support and services to Chinese customers and industrial partners as always.
He reviewed his achievements in more than ten years of working in arm and arm China, and hoped that all arm China employees could continue to focus on creating new products under the complex and changeable situation.
One of the words is very important: here, I would like to thank all shareholders for their support for the company. At the same time, I also want to emphasize that shareholders should not and should not interfere in the daily operation of the company. I hope that the conflicts between shareholders can be solved through legal and compliant ways.
Arm's allegations are puzzling
So far, the outside world still can't draw a conclusion based on limited information, but whether Wu xiongang didn't disclose the conflict of interest he has constituted to the company is the core of this event.Wu was found to have set up a fund without the approval of the board of directors, involving a conflict of interest, sources said.
AI financial news agency reported that "Wu xiongang was outside to engage in fund-raising, which was approved by sun Zhengyi of Softbank." Softbank group, led by sun Zhengyi, bought arm in 2016 for about $32 billion.
A senior person in the IP industry said that the establishment of local funds could not harm the interests of arm company. The original purpose was to make arm China bigger. If arm China only relies on IP authorization business, it will be very difficult for arm China to go public and help sun Zhengyi earn back the acquisition money.
This is also related to the relationship between arm and arm China. Arm China was incorporated in 2018, with Chinese investment team accounting for 51% of the shares and arm company accounting for 49%, taking over all arm's business in China. It is believed that arm is worried about losing control of arm China.
According to the above insiders, since the establishment of arm China, arm company has given the Chinese market to arm China, and arm China is unlikely to compete with arm, because the core IP is in the hands of arm company.
Another person in the industry said that foreign enterprises will encounter problems in the process of localization. This event is related to the ownership structure of the company, mainly structural problems, especially between the local company and the head office.
"The general trend, I think, is that the products and services of IP UK companies do not meet the rapidly changing local market demand, and the objective need to Arm China's growth has given rise to in the process." Industry insiders also said.
But both industry veterans said the outside world should not make arbitrary conclusions. But the accusation made by arm company against Wu xiongang cannot be understood.
The most important reason is that the industry can see the achievements of the past two years led by Wu xiongang. Wu xiongang has worked in arm company for 16 years. Since the establishment of arm China in 2018, he has been promoting three product lines: Zhouyi Aipu, Shanhai platform security solution and star processor.
Under the leadership of Wu xiongang and the efforts of all arm China employees, the revenue and profit performance of arm China in 2019 reached a record high. Wu xiongang also disclosed in the internal letter that under the dual influence of the complex business environment and the new crown epidemic in 2020, arm China has made outstanding achievements. AI, CPU and Internet of things security products have been recognized by many customers, and many projects have entered the stage of mass production.
In March this year, the Zhouyi Aipu of arm China landed in the latest AI voice dedicated chip of Quanzhi in the form of AI dedicated core. Arm China's products ushered in a good time of scale landing.
As Wu xiongang said in many previous activities, "we set up arm China as a joint venture company to focus on the Chinese market and do core technology in China." In his internal letter, he also expressed his sincere hope that the company could continue to focus on building new products and support the enabling industry partners.
What's the reason for Wu xiongang, a 16 year employee of arm, and a well-known professional who firmly believes that China will be the intellectual output in the future, to harm the company's development?