Arm accused the head of its China joint venture of propagating false information and a culture of fear at the unit, as the executive refused to relinquish his role despite the announcement of a successor in June.

In its latest statement on the issue, Arm said Arm China chairman and CEO Allen Wu would not step down despite a legally valid resolution to remove him being passed in early June, when a new leadership team for the venture was announced.

“The Arm China board is working closely with government authorities to peacefully resolve the current issue and ensure Allen Wu is unable to commit further harmful or disruptive actions against Arm China employees and partners moving forward.”

“Allen’s focus on his own self-preservation has also put China semiconductor innovation at risk”, it added, accusing the executive of trying to block critical communications related to chip designs made by Arm’s central business.

The statement followed earlier comments made by Arm China: Nikkei Asian Review reported the unit used its Weibo page to call for protection by Chinese Authorities, arguing staff and clients had been coerced into calling for Wu’s replacement.

Arm is a minority partner in the JV with a 49 per cent stake and the remainder held by China-based investors.

In its Weibo post, the JV maintained Wu is in charge, with the statement signed by over 200 employees.