China's Leading Chip Design Firm Transfers Control to State-Owned Entity Following U.S. Blacklisting

Empyrean Technology hands over management to China Electronics Corporation after being added to the U.S. Entity List, intensifying government involvement in China's semiconductor sector.

Empyrean Technology, China's largest domestic electronic design automation (EDA) firm, has ceded control to China Electronics Corporation (CEC), a state-owned shareholder with a 34% equity stake.
The move follows the U.S. Department of Commerce blacklisting Empyrean and 139 other Chinese entities, barring them from trade with American firms over national security concerns.
Empyrean's board of directors approved the transfer, with four directors stepping down, giving CEC six seats on the 11-member board; a shareholder meeting will finalize the decision later this month.
The leadership shift is expected to leverage CEC's access to government resources and partnerships, potentially stabilizing Empyrean's operations despite U.S. sanctions.
The development highlights escalating U.S.-China tensions in the semiconductor industry, with the U.S. targeting critical technologies like EDA tools to curb China's chipmaking capabilities.