[News] Chinese EDA Consolidation Falters as Empyrean Drops Xpeedic Acquisition

According to Chinese media outlet ITHome, Chinese EDA firm Empyrean Technology has announced it will no longer proceed with its planned acquisition of Xpeedic, citing a failure to reach agreement on key terms. The report notes that on July 9, the company issued a statement confirming the termination of the previously proposed deal, which involved issuing shares, paying cash to acquire assets, and raising supporting funds as part of a related-party transaction.

As noted by STCN, in March this year, Empyrean Technology had announced plans to acquire 100% of Xpeedic’s equity through a combination of share issuance and cash payment.

Founded in 2009, Empyrean Technology focuses on the development, sales, and related services of EDA tools. According to its website, its core offerings include a full-custom design EDA platform, wafer manufacturing EDA tools, and related software and technical services.

As ChinaFund highlights, Empyrean is a leading player in China’s EDA industry, while Xpeedic also operates in the same field but takes a different technological approach. Industry observers cited by ChinaFund suggest that if Empyrean successfully acquires Xpeedic, it could extend its capabilities from the chip level to the system level, further boosting its market share and establishing a full-process framework.

In late May, the U.S. government reportedly ordered the world’s top three EDA vendors—Synopsys, Cadence, and Siemens—to halt software sales to China unless they obtain a license. According to Bloomberg, the Trump administration eased certain export license requirements for EDA software on July 3.

The global EDA market is dominated by U.S. and European companies. According to TrendForce, as of 2024, Synopsys, Cadence, and Siemens held 31%, 30%, and 13% of global market share, respectively.

Meanwhile, TrendForce projects that by 2024, China’s self-sufficiency rate in EDA software exceeded 10%—a marked improvement from previous years. Domestic EDA players like Empyrean and Primarius have shown explosive growth.

Notably, aside from Empyrean Technology’s now-terminated bid to acquire Xpeedic, Chinese EDA firm Primarius Technologies announced in March 2025 plans to acquire a stake in Chengdu Analog Circuit Technology (Actt), highlighting the ongoing consolidation in China’s EDA industry, as reported by 21st Century Business Herald.

Read more

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(Photo credit: Empyrean Technology’s LinkedIn)