Empyrean Technology Transfers Control in Semiconductor Industry amid US Sanctions
In a significant move, Empyrean Technology has ceded control to state-owned enterprises following US sanctions impacting the semiconductor industry. The Beijing-based firm, known as China's alternative to US giants like Cadence, has adjusted its board composition, allowing China Electronics Corporation (CEC) to take full control post placement on the US trade blacklist.
Government Oversight in Semiconductor Industry
This shift indicates an increasing role of the government in guiding the semiconductor industry's trajectory. Following US Department of Commerce sanctions, Empyrean's stock price surged by 9% to 134 yuan in Shenzhen, reflecting investor confidence in the new structure.
Impact on Operations and Future Collaboration
- Empyrean states that the change will not adversely affect its day-to-day operations.
- Collaborating with CEC provides enhanced access to local governments and related enterprises.
The move can be seen as a response to geopolitical pressures, as it will facilitate unprecedented collaboration between state-owned and private entities.
Revenue Growth Amid Geopolitical Pressure
Empyrean Technology has experienced rapid revenue growth in recent years, reaching 1 billion yuan (US$137.6 million) in the last fiscal year, which is a 26.6% increase year-on-year. As the company navigates these changes, it aims to consolidate its presence within the EDA market, controlling about 5% in a sector dominated by Cadence and others.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.