[News] US Rumored to Order EDA Giants to Halt Support in China, Jeopardizing Local 3–7nm Development

To curb China’s chip ambitions, the U.S. may be turning up the heat again. On May 28, Chinese outlets IC Smart and MyDrivers reported that Siemens —one of the top three global EDA players —was told to halt all EDA support in mainland China. Reuters and the Financial Times later added that Cadence and Synopsys received similar notices.

Commercial Times suggests this might be a U.S. trial balloon to test Beijing’s response before finalizing policy. But if true, it could seriously disrupt China’s advanced chip design by tightening restrictions on the critical 3–7nm nodes.

Top 3 EDA Giants Shut Down the Rumors

IC Smart reveals Siemens EDA’s tech sites are already blocked in China, with the company waiting for the U.S. BIS to return from holiday to confirm details. The other two major U.S. EDA firms reportedly received similar notices and are also awaiting BIS confirmation.

According to Reuters and the Financial Times, top EDA firms, including Cadence, Synopsys, and Siemens, have been told to stop selling their chip design software to China without a license. The Commerce Department reportedly issued the notices last Friday, signaling tighter controls but not a full ban, as export licenses will be reviewed case by case.

As per Reuters, Synopsys’ CEO addressed the rumors head-on, telling analysts the company hasn’t received any notice from the U.S. Commerce Department or its BIS unit, adding that their full-year guidance already factors in current export rules and an expected year-over-year decline in China.

Meanwhile, MyDrivers, citing sources, reports that after speaking with Siemens staff, the supply cutoff might be a false alarm. A Cadence executive also told media that despite the recent wave of rumors, their support for Chinese clients remains unchanged.

Globally, the EDA market is dominated by U.S. players. According to TrendForce, in 2024, Synopsys, Cadence, and Siemens EDA hold 31%, 30%, and 13% of the market respectively—giving the trio a commanding 74% combined share.

Chinese EDA Firms Still Lack Firepower

As highlighted by Commercial Times, cutting off EDA access isn’t new. The U.S. already banned EDA tools for sub-3nm chips in 2022—but the latest move could reportedly expand restrictions to 3–7nm nodes.

While China has homegrown EDA firms like Empyrean, Primarius, and Semitronix, Commercial Times suggests that they still fall short—especially in advanced GAA tools. Foundry insiders cited by the report add that EDA tools are now deeply integrated with chip production and IP solutions, making them indispensable.

Thus, the move, if true, would spell big trouble for Chinese chip designers, while giving Taiwanese chipmakers like MediaTek, Novatek, and Realtek a competitive edge, as noted by Commercial Times.

IC Smart, citing 2020 data, says Chinese EDA firms held just 11.5% of the local market, with Empyrean in the lead. But most remain small and specialized—Empyrean focuses on analog design, while Primarius has gradually expanded from modeling to tools for custom memory and mixed-signal IC design, the report adds.

Read more

• [News] SK hynix Reportedly Weighs Suspension of Chinese EDA Software Amid Expected U.S. Restrictions
• [News] China’s EDA Giant Empyrean Technology Shifts Control to State-Owned Company after U.S. Blacklist

(Photo credit: Synopsys)