Arm China Majority Shareholders Announce the Company’s Corporate Governance Issue Has Been Resolved

Rhea-AI Summary

Arm Ltd, in partnership with HOPU Investment and SoftBank Group, has resolved its corporate governance issue with a unanimous vote by the Arm China Board. The company appointed Dr. Renchen Liu and Dr. Eric Chen as co-CEOs, effective immediately, with Dr. Liu recognized as the legal representative. Arm remains committed to its business operations in China and the ongoing strategic partnership with Arm China, which will continue to manage its IP licensing and development independently. Both CEOs bring extensive experience from the technology sector.

Positive

• Appointment of Dr. Renchen Liu and Dr. Eric Chen as co-CEOs may enhance leadership stability.
• Continued commitment to the Chinese market ensures ongoing operations and revenue potential.
• Arm China remains the exclusive distributor for Arm's IP in China, maintaining market control.

Negative

• None.

BEIJING & CAMBRIDGE, United Kingdom & TOKYO--(BUSINESS WIRE)-- Arm Ltd, HOPU Investment, and SoftBank Group, acting in their capacity as direct and indirect shareholders holding majority equity interest in Arm China, are announcing the company’s longstanding corporate governance issue has been resolved following a unanimous vote by the Arm China Board of Directors.

In full compliance with Chinese law, the Arm China Board of Directors has appointed Dr. Renchen Liu and Dr. Eric Chen as the company’s co-CEOs. Dr. Liu has also been duly registered and accepted by local Shenzhen government authorities as the company's legal representative and general manager. These appointments are effective immediately.

Arm remains committed to the Chinese market, Arm China as an independent operating company majority owned by Chinese investors, and to the success of Arm’s Chinese ecosystem partners.

The strategic partnership, IP license agreement and business model between Arm and Arm China remains unchanged. Arm China will continue to be the exclusive commercial distribution channel for Arm to license its IP to Chinese licensees. Arm China will also continue to develop its own IP. Under the new leadership, Arm China will be committed to a customer-first culture, serving its customers fairly, equally, and without discrimination.

Dr. Liu and Dr. Chen both have extensive engineering, investment and leadership experience. Dr. Liu is deeply connected with the Chinese technology industry and has extensive leadership experience as he has served the general manager, or an IC member of several technology investment funds and research institutions. Dr. Liu holds a bachelor’s degree from Tsinghua University and a Ph.D. from Oxford University.

Dr. Chen currently serves as Managing Partner and Head of China at SoftBank Investment Advisers (the company that manages SoftBank Vision Fund). Previously Dr. Chen served as cofounder and CEO of Brion Technologies (a high-performance computing company later acquired by ASML) and cofounder and chairman of BaseBit Technologies, a confidential computing data technology company. He currently serves as an independent director of Applied Materials. Dr. Chen has a background in physics from Peking University and a Ph.D. in electrical engineering from Stanford University

About Arm

Arm technology is at the heart of a computing and data revolution that is transforming the way people live and businesses operate. Our energy-efficient processor designs and software platforms have enabled advanced computing in more than 215 billion chips and our technologies securely power products from the sensor to the smartphone and the supercomputer. Together with 1,000+ technology partners we are at the forefront of designing, securing and managing all areas of AI-enhanced connected compute from the chip to the cloud.

All information is provided "as is" and without warranty or representation. This document may be shared freely, attributed and unmodified. Arm is a registered trademark of Arm Limited (or its subsidiaries). All brands or product names are the property of their respective holders. © 1995-2022 Arm Group.

About SoftBank Group

The SoftBank Group invests in breakthrough technology to improve the quality of life for people around the world. The SoftBank Group is comprised of SoftBank Group Corp. (TOKYO: 9984), an investment holding company that includes stakes in telecommunications, internet services, AI, smart robotics, IoT and clean energy technology providers; the SoftBank Vision Funds, which are investing more than US$140 billion to help extraordinary entrepreneurs transform industries and shape new ones; the US$5 billion SoftBank Latin America Fund, the largest venture fund in that region; the US$3 billion SoftBank Latin America Fund II; and the SB Opportunity Fund, a US$100 million fund investing in Black, Latinx and Native American founders in the U.S. To learn more, please visit https://group.softbank/en.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220429005435/en/

For Arm:

Phil Hughes

phil.hughes@arm.com

For SoftBank:

softbank-svc@sardverb.com

Source: SoftBank Group

FAQ

What recent leadership changes occurred at Arm China?

Dr. Renchen Liu and Dr. Eric Chen were appointed as co-CEOs of Arm China, effective immediately.

What is the significance of Arm's governance issue resolution?

The resolution of the governance issue ensures the stability of operations and leadership within Arm China.

How does the leadership change impact SoftBank's involvement with Arm China?

SoftBank continues to support Arm China as a major investor, and the leadership change is expected to strengthen operational effectiveness.

What is Arm's commitment to the Chinese market?

Arm remains committed to the Chinese market through independent operations of Arm China and ongoing support for local ecosystem partners.