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TechTech War

Chinese firm aiming to break US dominance in chip design software gets IPO approval at home

  • A successful initial public offering could help Empyrean Technology raise more than US$380 million, the firm says
  • The company aims to become a global leader in EDA software by 2030, in a market currently led by US firms Cadence, Synopsis and Mentor Graphics

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Empyrean Technology, a Beijing-based developer of chip design software, has received approval for an IPO in Shenzhen. Photo: Shutterstock
Che Pan

Chinese electronic design automation (EDA) software firm Empyrean Technology, one of China’s best hopes in reducing reliance on imported chip design tools, has received approval from securities regulators to go public in the southern city of Shenzhen.

A successful initial public offering could help the Beijing-headquartered company raise more than 2.55 billion yuan (US$381 million), according to Empyrean’s prospectus.

The firm’s backers include its largest shareholder – state-owned China Electronics Corp – which owns a 26 per cent stake, as well as the National Integrated Circuit Industry Investment Fund, a significant financial supporter of the Chinese chip industry known as the “Big Fund”.

Empyrean said the IPO proceeds would go into several EDA development projects, including building analogue and digital chip design and verification tools.

Despite being a small player with just a 6 per cent share in the home market as of 2020, Empyrean is banking on a state-led push to increase China’s self-sufficiency in strategic technologies, including EDA software, to expand its business.

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