SoftBank’s Arm Fired its China CEO — But That Doesn't Mean He's Leaving
- Chinese corporation rules mean he will be difficult to remove
- Wu maintains he is still in charge of Arm China Joint Venture
Photographer: Chris Ratcliffe/Bloomberg
Arm Ltd., the chip designer owned by SoftBank Group Corp., ousted the head of its Chinese venture after discovering the executive had set up an investing firm that would compete with its own business in China, according to people with direct knowledge of the decision.
Arm China Chief Executive Officer Allen Wu established a fund called Alphatecture whose aim is to invest in companies that use Arm technology, said the people, who requested anonymity discussing a personnel decision. It’s common -- and legal -- for chip companies to use investment divisions to provide financial help to fledgling companies that can’t otherwise afford their typically pricey components. But the problem in Wu’s case is that Arm Ltd. and partner Hopu Investment Management Co., which together are major backers of the venture, already have one of these funds. Wu’s move put him in direct competition with his employers, the people said.