China’s chip design firm, Empyrean Technology, has given management control to China Electronics Corporation (CEC), a major state-owned shareholder.

This decision follows Empyrean’s addition to a United States trade blacklist, signaling a growth in state oversight amid US-China tensions in the semiconductor space.

A corporate filing revealed that Empyrean’s board bestowed full control upon CEC.

The entity, which indirectly holds a 34% stake, will now fill six of the 11 board positions.

Four directors from Empyrean have resigned to enable this transition.