ARM Holdings—Lost control of ARM China joint venture as CEO refused to share financial results and held company seal

ARM China, which contributed 24.5% of ARM's $2.68B revenue in fiscal 2023, experienced a major governance crisis when CEO Allen Wu refused to share ARM China's financial results with ARM and blocked the company's planned March 2023 NYSE IPO. Wu held the company's seal, preventing ARM from firing him. Since April 2022, Wu lodged several lawsuits in Chinese courts challenging corporate governance. ARM holds only 4.8% effective interest in ARM China through a 10% stake in an intermediate entity, while Chinese parties control the majority. In October 2023, key staff left to form competing chip design startup Borui Jingxin with government backing.