China's largest maker of chip design tools, Empyrean Technology, has handed over full control of its company to the state-owned China Electronics Corporation, according to the South China Morning Post. This surrender of control comes thanks to heavy American sanctions leveled against the Chinese tech industry earlier this month, which placed Empyrean on the US's "Entity List".
Empyrean's latest corporate filings reveal that its board of directors gave China Electronics Corporation (CEC) full control of the company on Monday. Four directors from Empyrean stepped down, allowing CEC to take 6 total seats on the 11-member board (CEC already held two seats as a 34% equity holder). A full shareholder meeting will follow to authorize the change. Empyrean stock on the Shenzhen Stock Market rose 9% to 134 yuan (~$18.48) in response to the news.
