U.S. Tightens Rules on Chip Design Software Sales to China

The Trump administration has reportedly introduced new export restrictions on chip design software in an effort to further limit China’s capacity to develop and utilize advanced AI chips.

Companies including Siemens EDA, Cadence Design Systems, and Synopsys have confirmed receiving notifications from the U.S. Commerce Department regarding new export controls on electronic design automation (EDA) software destined for China.

Critical Role of EDA Tools Across High-Tech Industries

EDA tools are essential for designing, validating, and testing semiconductors, as well as ensuring their performance and quality. These tools are widely used across industries such as chip manufacturing, networking, and automotive.

Siemens EDA, a subsidiary of the German tech giant Siemens, told TechCrunch it received a notice last week from the U.S. Commerce Department’s Bureau of Industry and Security (BIS) regarding new export restrictions on EDA software to China and Chinese military end users.

“Siemens has been serving customers in China for over 150 years and remains committed to supporting them globally while complying with all relevant national export control laws,” the company stated.

Synopsys Responds to Export Curbs by Withdrawing Financial Forecast

U.S.-based Synopsys, another EDA software provider, also confirmed receiving a similar notice from the BIS. The company has since withdrawn its financial forecast for Q3 and the full fiscal year 2025.

Cadence likewise confirmed receiving a notice from the BIS stating that a license is now mandatory for the export, re-export, or in-country transfer of electronic design automation (EDA) software to customers in China.

The Financial Times was the first to report the news.

These new export restrictions come amid escalating U.S. efforts to curb China’s tech advancements as competition in AI intensifies. However, the measures are also taking a toll on the U.S. chip industry, which has historically held a strong position in the Chinese market.

Nvidia alone has suffered billions in losses due to limits on selling its H20 and Hopper AI chips to China. The company, along with rival AMD, is reportedly developing lower-powered versions of its AI chips for the Chinese market.

The U.S. Commerce Department has not responded to requests for comment outside normal business hours.

Read the original article on: Techcrunch

Read more: AI Chip Designed for Decentralized Operation Without Relying on the Cloud