New Delhi, June 11 : Suggesting disagreement between the two entities, SoftBank Group owned U.K. chip designer Arm and its Chinese joint venture issued contradicting statements on Wednesday over the removal of the local unit's CEO, the Nikkei reported. As per the report, Arm Limited said in a statement on Tuesday that the board of Arm China appointed two interim co-CEOs to replace Allen Wu as chairman and CEO. On Wednesday, Arm China posted on Chinese social media platforms that Wu would continue to lead the company, directly contradicting the British company. "Arm China is an independent entity and legally registered in China. According to all the laws and regulations, Allen Wu will continue his responsibility and role as Chairman and CEO," it said. Arm Limited thereafter issued a lengthier joint statement with Hopu, another major shareholder in Arm China. It said Wu was removed after a whistleblower complaint triggered an investigation, which found "serious irregularities, including failing to disclose conflicts of interest and violations of the employee handbook." "The Board believes that removing Mr. Wu is the most ethical and responsible decision to ensure Arm China's long-term stability and business prospects," Arm and Hopu said, as per the Nikkei report. The contradicting statements suggest disagreement between the two entities after Arm spun off its Chinese business. SoftBank acquired Arm, the leading designer for chips in smartphones, in 2016 for about $31 billion. In 2018, Arm sold 51 per cent stake in its Chinese unit to a group of investors. They include state-backed entities such as the Silk Road Fund, sovereign wealth fund China Investment Corporation and Shenzhen government-owned conglomerate Shum Yip Group. Since the acquisition, SoftBank Chairman and CEO Masayoshi Son has asked Arm to ramp up spending on research and development in an effort to expand the range of devices using Arm-designed chips. In mid-May, he said shipment of Arm-designed chips are "continuing to grow at an exponential rate." However, the effort has yet to deliver financial results with only 3 per cent increase in revenue. Arm is seen as one of the world's most important chip design blueprint providers as its intellectual property is needed in more than 90 per cent of global smartphones and mobile devices. Apple, Samsung, Huawei, Qualcomm and Mediatek all need Arm IP licenses to develop their core mobile processors. Softbank's move in 2018 to cede control of its Chinese operation was viewed as a victory and a major breakthrough for China to secure a crucial source of semiconductor technology, Nikeei said. /IANS