Will Jen-Hsun Huang make a decision soon? Huida’s board of directors meets late into the night and 11 directors can be replaced with just 6 votes

Huida CEO Jen-Hsun Huang. (Bloomberg)

[Financial Channel/Comprehensive Report] Huang Renxun, CEO of Huida, the world's leading AI chip leader, has been involved in two extramarital affairs, and has even been implicated in suspicions of Chinese espionage, putting the technology giant who has been at the helm for more than 30 years facing a leadership crisis. Reuters quoted people familiar with the matter as saying that Huida's board of directors met on the evening of November 11th Eastern Time (morning on the 12th Taiwan Time) to discuss whether to replace Huang Renxun, and the meeting lasted until late at night. According to the company's articles of association, Huang Jen-Hsun can be dismissed as CEO with only 6 votes from the 11 directors.

Reuters reported that a person familiar with the matter revealed that Huida’s board of directors held a meeting on the evening of November 11, Eastern Time (morning of November 12, Taiwan time) to discuss whether to replace CEO Huang Renxun. Reuters published a relevant report at 5:34 pm Eastern Time on the 11th (6:34 am on the 12th Taiwan Time), stating that the meeting continued until late local night.

Huida did not immediately respond to a request for comment on the board meeting.

It is worth noting that according to Huida's articles of association, the board of directors can replace senior executives of the company "with or without reason" as long as it obtains the consent of more than half of the directors. Huida's board of directors currently has 11 directors. Except for Huang Renxun himself, the other 10 people are recognized by the company as independent directors. In other words, as long as at least 6 directors vote in favor, the resolution to remove Huang Renxun as CEO can be passed, but it does not mean that he will be removed as a director at the same time.

The Wall Street Journal first disclosed that Huida’s board of directors was preparing to force Huang Renxun to step down. After the news came out, Huida’s share price plunged more than 8% in after-hours trading on U.S. stocks. However, it is still not possible to confirm the actual start time of the meeting and whether it will continue until the early morning of the 12th Eastern Time.

The news also highlights a significant change in the board's attitude. On November 8th, Eastern Time (Taiwan Time 9th), Huida's board of directors publicly expressed its trust in Huang Renxun and his management team, but now they held a meeting to discuss whether to let him step down, only three days apart.

The turmoil was caused by Huang Renxun's two extramarital affairs that were exposed one after another. The New York Times reported that Jen-Hsun Huang was in a relationship with Kimberly Powell, vice president of Huida's healthcare business. The two were allegedly photographed interacting intimately at a hotel in San Jose, California, in March this year, raising questions about corporate governance and conflicts of interest.

Another extramarital affair involved Chinese businesswoman Alice Huang. According to reports from the Financial Times and the New York Times, U.S. intelligence agencies suspect that Huang Le is related to China’s Ministry of State Security and are investigating whether she used her relationship with Huang Jen-Hsun to help export-controlled Huida chips flow to Chinese companies. However, the relevant accusations of spying have not been publicly confirmed, and China has also denied the relevant accusations.

Huang Le's suspicion of being a communist also spread to Taiwan. Minister of the Interior Liu Shifang confirmed on November 11 that Huang Le had indeed entered Taiwan in the past and was currently overseas. The Immigration Department had revoked her entry permit and restricted her from coming to Taiwan again. Chairman of the Mainland Affairs Council Qiu Chuizheng pointed out on the 12th that Huang Le came to Taiwan three times in 2024 and five times in 2025, a total of eight times in two years, all with Hong Kong passports.

Taiwan's Executive Yuan also confirmed on the 12th that the case involves a transnational cooperative investigation and that relevant national security units have intervened. Due to the principle of non-disclosure of investigations, no further details can be disclosed for the time being. As for whether Huang Le was involved in intelligence collection or other illegal activities during his stay in Taiwan, it remains to be investigated and clarified.

As the storm continued to expand, Huida's board of directors also began to evaluate succession arrangements. Bloomberg reported that the board of directors has tasked an outside agency to find a potential successor. Market participants believe that Chief Financial Officer Colette Kress, who has served for more than 10 years, may be one of the candidates to act as interim CEO; Ian Buck, who is responsible for the data center business, is also regarded as a potential successor.

The 63-year-old Huang Renxun is the co-founder of Huida and holds about 3.6% of the company's shares. He has been at the helm for more than 30 years and has led Huida to become the global AI chip overlord. Once the board of directors decides to replace Huang Renxun, it will not only rewrite Huida's leadership, but may also affect investment confidence in the global AI industry and technology stocks.

As of now, the board of directors has not officially announced the final resolution, and the outside world is paying close attention to whether Huang Renxun can continue to be at the helm of Huida and the company's future personnel arrangements.

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