burst!Amou China team issued an open letter again

Arm Technology (China) Co., Ltd. (“Amou China”) is a Sino-foreign joint venture independent legal person headquartered in Shenzhen, formerly a subsidiary of Arm in China. In April 2018, after nearly two years of arduous negotiations, under the leadership of the Shenzhen Municipal Government and the strong support of various ministries and commissions, Chinese investors signed a contract with SoftBank Group to establish Amou China, a joint venture company. The joint venture is 51% held by the Chinese party and 49% held by the foreign party. China Investment Corporation, Shum Yip Group, Silk Road Fund, Bank of China International, China Merchants Bank International and many other central state-owned financial institutions and well-known industrial capital participated in the investment and establishment of the joint venture company, and selected Hopu Investment and Anchuang Fund as the Chinese party. The representative of the investors, who joined the board of directors of Arm China as a person acting in concert, jointly manages and guides the majority of voting rights of 51% of the Chinese shareholders. Since then, the joint venture has acquired Arm’s permanent and exclusive product sales rights in the Chinese market, as well as independent research and development rights based on Arm’s technology architecture.

Arm China is committed to empowering the ecosystem construction of China’s semiconductor industry. Looking back at the changes in the international competition pattern of the semiconductor industry in the past two years, Arm China, a joint venture company, has become an important part of the forward-looking strategic layout of China’s chip industry. Our business team takes pride in joint ventures, empowers the domestic semiconductor ecosystem, promotes local companies to enter the international ranks, and strives to break through the existing x86 technology monopoly in domestic personal computers, servers, high-performance computing and other fields, and support national independence. Controllable core technology industry chain; at the same time, our technical team has also worked together, actively and independently developed and worked hard, released and mass-produced Zhouyi (artificial intelligence), Xingchen (Internet of Things CPU core), Shanhai (IoT platform), etc. within two years Self-developed products have been recognized by the market and customers. In 2019, the joint venture’s revenue grew by nearly 50% annually, accounting for 27% of Arm’s global IP business and 100% of revenue growth.

However, at the time when Amou China’s young eagles were spreading their wings, there was a much-discussed “coach change” incident in early June 2020. Our team has witnessed and witnessed: Arm and Hopu Investment jointly wanted to remove the chairman and CEO, but some of the company’s investors believed that the resolution of the board of directors was controversial and resorted to legal means to resolve it. Recently, some directors of Hopu Investment and Arm UK began to send people to frequently contact the customers of the joint venture company; and threatened to modify or cancel the existing contract with the joint venture company; what’s more, some directors called the joint venture company team to conduct personal complaints against employees. Threats and harassment.

In this emergency, as ordinary employees, we have been looking forward to the resolution of shareholder disputes as soon as possible within the legal framework, that Arm China can continue to develop independently, and the team can contribute to the development of China’s semiconductor industry without any worries. The current international situation is unprecedented in a century, complex and changeable, and at a time of turmoil when SoftBank Group is selling Arm. We sincerely hope that all shareholders can realize that the harm to customers will seriously affect Arm’s reputation in the Chinese industry, and it is not conducive to joint ventures. long-term development of the company.

Here, we call on all shareholders and the board of directors of Arm China to participate in the company’s strategic decision-making in a legal and compliant manner, not to directly interfere with the normal operation of the company, and not to harm the legitimate rights and interests of employees. Amou China is a Chinese-controlled joint venture, which should abide by Chinese laws and fulfill China’s social responsibilities. At the same time, we also urge the relevant government departments at all levels to pay attention to the turmoil that Amou China is facing, to intervene and protect the key to this strategic asset in a timely manner, to ensure that shareholder disputes can be resolved legally and reasonably, and to bring our joint venture back to the right track as soon as possible. , the team can work with peace of mind!

Sincerely!

Amou Technology (China) Co., Ltd.

Technical and business teams

July 28, 2020

Author: Yoyokuo