The Trump administration is taking new steps to limit China’s capacity to manufacture advanced chips by ordering American companies to cease sales of semiconductor design software to Chinese firms.
New Export Restrictions
According to sources, the US Department of Commerce has informed companies like Cadence, Synopsys, and Siemens EDA about the ban on selling chip design software to China. This information was conveyed in official letters from the Bureau of Industry and Security responsible for export control.
Role of EDA Software
While EDA software accounts for a small portion of the semiconductor industry, it plays a crucial role in designing and testing next-generation chips. About 80 percent of the Chinese EDA market is controlled by Synopsys, Cadence Design Systems, and Siemens EDA.
History of Restrictions in This Area
The first restriction in this area was introduced during the Biden administration in 2022 when sales of the most advanced chip design software to China were banned. However, companies continued selling products that complied with export controls.
Thus, the steps taken by the Trump administration continue the trend of tightening control over technology exports to China, reflecting growing concerns over competitiveness in the high-tech sector.
