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".
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
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.
Empyrean, which has research facilities in Nanjing, Chengdu, Shanghai and Shenzhen, was founded in 2009, a year after China rolled out a special project to boost its capacity in key electronic devices, high-end general purpose central processing units and basic software products.
The company listed three development goals in its prospectus: help China "plug holes" in key EDA software categories by 2023, "fully substitute" foreign design tools with domestic versions and create a complete ecosystem of software tools needed for chip design by 2025, and become a global leader in EDA software by 2030.
Amid the government's strong push towards chip development, Empyrean's EDA revenue – accounting for more than 97 per cent of its total revenue – rose 60 per cent year on year to 406.1 million yuan in 2020 from 253.4 million yuan in 2019. Government tax breaks made up nearly 70 per cent of the company's net profits in 2020, compared with 85 per cent and 57 per cent in 2019 and 2018, respectively.
Empyrean received initial approval to list in Shenzhen late last year, but the listing process was delayed when the law firm involved came under investigation for reasons unrelated to Empyrean. The IPO process restarted this March.
Chinese semiconductor design companies have increased in number over the past few years, but most still rely on imported EDA software. Many industry professionals have warned that China relies more on foreign technologies in EDA tools than in chip manufacturing, having few substitutes if access to imports was cut.
Currently, roughly 90 per cent of the global EDA market is controlled by American firms Cadence Design Systems, Synopsis, and Mentor Graphics.
"Compared with the global top three, Empyrean's brand influence, technology research-and-development level, financial strength and market share still have some gaps," the Chinese firm said in its IPO filing.
The global market size for EDA tools was estimated at US$9.1 billion in 2020, according to a report published in February by market intelligence platform ReportLinker. It is projected to reach US$14.9 billion by 2026
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2022 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2022. South China Morning Post Publishers Ltd. All rights reserved.
As we move toward the end of Q2, it’s time to start thinking about earnings. Looking back at the quarter, analysts are predicting earnings growth of 8%, which may rise to 11% heading into next year. It’s a rosy picture, but it’s also not a sure thing. GDP contracted in Q1, by nearly 1.5%, and some estimates are showing 0% growth in Q2. Such results would meet the technical definition of a recession – and recession is hardly the usual environment to find robust earnings growth. Looking at current
Nuclear submarine supplier to be sold to US buyer after diplomatic row Russian default expected within days Retail sales volumes down 0.5pc in May FTSE 100 rises strongly Ambrose Evans-Pritchard: The pro-Brussels establishment is painting Brexit as an economic disaster to reverse it Sign up here for our daily business briefing newsletter
When you need another stream of income for retirement, you might consider an annuity. You purchase the annuity from an insurance company and receive payments back at a later date. Before buying an annuity, it's important to consider how much … Continue reading → The post How Much Does a $300,000 Annuity Pay Per Month? appeared first on SmartAsset Blog.
At current levels, investors need a 7% to 8% return just to preserve their wealth.
In this article, we will take a look at 10 value stocks to buy according to billionaire David Tepper. If you want to skip our discussion on Tepper’s history and his hedge fund’s performance, go directly to 5 Value Stocks to Buy According to Billionaire David Tepper. With a net worth of $16.7 billion, David […]Tesla plant near Shanghai is going to shut down temporarily, according to reports. On Wednesday, Reuters reported that Tesla (ticker: TSLA) will shut down production in China for a couple of weeks at the start of July to upgrade equipment. Tesla didn’t return a request for comment.
Energy prices are high. But bargain-hunter Buffett continues to bet on big oil.
“Time is running out for cash-burning companies kept afloat with easy access to capital,” New Constructs CEO David Trainer said in a Thursday research note.
As Netflix cuts costs to ease subscriber-loss pains, more jobs have been scrapped.
At least seven people were injured after plane crash-landed and caught fire on Miami International Airport runway
Dividend stocks are the new darlings in S&P 500. But investors are getting burned on those stocks, too.
Shares of the specialty pharmaceutical company Bausch Health Companies (NYSE: BHC) are surging today in response to the news that Joseph Papa has resigned from the board of directors effective immediately. Over the past six years, Papa has been instrumental in lowering the company's sky-high debt and keeping it out of bankruptcy court. Bausch said in a statement Thursday evening that billionaire hedge fund manager John Paulson will fill the vacant board position.
(Bloomberg) — Chinese electric vehicle maker Nio Inc. said a test car crashed from the third floor of its headquarters in Shanghai, killing two people.Most Read from BloombergJuul’s Vaping Products Are Ordered Off the Market in the USElon Musk Says New Tesla Plants Are ‘Money Furnaces’ Losing BillionsThe World’s Bubbliest Housing Markets Are Flashing Warning SignsRecession Worries Boost Treasuries; Stocks Advance: Markets WrapJuul Soon to Be Ordered Off the Market by FDA, WSJ ReportsThe acciden
Peaky Blinders and Cobra producer Joe Donaldson has set an indie, Magic Hour Television, and signed a first-look deal with All3Media International and All3Media-owned drama house New Pictures. Donaldson will develop a slate, funded by All3 and its international arm, and partner with New Pictures co-founder and CEO Willow Grylls to produce scripted TV. Furthermore, Donaldson […]The Dow Jones moved higher as yields fell. Tesla stock skidded after CEO Elon Musk voiced a warning. A Warren Buffett stock rose.
Deep discounts on Apple devices have been popping up with increasing frequency lately. Today, however, there are some surprisingly impressive Apple deals at the nation’s top online retailers. In fact, the best Apple deals now have prices so low that it seems like a mistake! With Prime Day 2022 less than a month away, however, … The post Best early Prime Day Apple deals you can shop now appeared first on BGR.
In addition to summer beach reads by Elin Hilderbrand and Jenny Han, Jenny Mollen's debut fiction book, "City of Likes," makes the best sellers list.
High-yield dividend stocks are a major component of my stock portfolio. Here are three income stocks that have room for solid gains in the next year and even better gains over the long run. The blue-chip business development company (BDC) Main Street Capital (NYSE: MAIN) has held up better than the S&P 500 index, which is down 21% so far this year.
SEAL Team is expanding its ranks, adding Raffi Barsoumian (Legends of Tomorrow) as a new series regular for Season 6 of the Paramount+ drama. The actor will play Omar, “a Senior Chief with 15 years of experience as a SEAL,” our sister site Deadline reports. “The son of Syrian immigrants, Omar has a deep understanding […](Bloomberg) — The S&P 500 Index may have another 24% to fall by year-end, if the past 150 years of financial-market history are any guide.Most Read from BloombergJuul’s Vaping Products Are Ordered Off the Market in the USThese Are the World’s Most Liveable Cities in 2022Elon Musk Says New Tesla Plants Are ‘Money Furnaces’ Losing BillionsRecession Worries Boost Treasuries; Stocks Advance: Markets WrapThe World’s Bubbliest Housing Markets Are Flashing Warning SignsThat’s according to Societe Gene