[Insights] China’s EDA Self-Sufficiency Tops 10% in 2024 — Will U.S. Crackdown Boost or Block Its Chip Push?

After Huawei’s Kirin X90 reportedly entered mass production on 5nm and Xiaomi wowed the world with its self-developed XRING O1—rumored to be built on 3nm—all eyes are now on China’s chip scene.

However, with Washington blocking EDA giants like Synopsys, Cadence, and Siemens from supporting China without a license in late May, focus has shifted to how local EDA firms and chip designers will respond. Below is TrendForce’s take on the impact this move could have on China’s homegrown EDA and IC design ecosystem.

China’s Homegrown EDA Tools May Get a Boost If U.S. Curbs Hold

As highlighted by TrendForce, EDA (Electronic Design Automation) tools are critical across the chip design and production pipeline, spanning front-end design, back-end design, verification, and testing. Notably, as U.S. tech restrictions tighten, both the Chinese government and private sector have ramped up support for homegrown alternatives.

It is worth noting that according to a previous EE Times China report, Huawei’s chip design team joined forces with local EDA firms to build tools for 14nm and above—effectively localizing key EDA software. By 2023, the company confirmed full validation was complete, marking a major milestone in China’s push for chip design independence, the reports adds.

According to TrendForce’s projection, by 2024, China’s self-sufficiency rate in EDA software is estimated to have exceeded 10%—a marked improvement from previous years. In the meantime, domestic EDA players like Empyrean and Primarius have shown explosive growth.

EDA development depends on tight collaboration with chip designers and fabs. Thus, as China expands in mature-node production, U.S. curbs may actually speed up the rise of local EDA tools—especially those built for mature processes—driving faster import substitution.

Advanced-Node EDA Remains a Hurdle

However, developing EDA software for advanced nodes is far more challenging, especially as China lags in cutting-edge semiconductor manufacturing. Limited access to advanced tools and production experience makes it tough for local EDA firms to deliver reliable, scalable solutions.

If the U.S. enforces a full export ban on advanced-node EDA tools, it could slow China’s progress in designing next-gen SoCs, GPUs, and ASICs—especially for consumer applications, as per TrendForce.

Read more

• [News] China Revenue at Risk as U.S. Curbs Slam EDA Giants: Impact on Synopsys, Cadence and More
• [News] US Rumored to Order EDA Giants to Halt Support in China, Jeopardizing Local 3–7nm Development

(Photo credit: Primarius)