The Trump administration has intensified restrictions on China's semiconductor sector by enacting new export controls on Electronic Design Automation (EDA) software. As of May 23, companies like Siemens, Synopsys, and Cadence Systems must obtain U.S. export licenses to sell to Chinese entities, particularly those linked to military applications. These new regulations stem from concerns over national security, specifically the potential for military misuse of the EDA software that plays a crucial role in chip design. This development is likely to hinder Chinese chip makers' competitiveness against Western companies.
On May 23, the U.S. Government informed the Electronic Design Automation industry about new export controls on EDA software to China and Chinese military end users globally.
Cadence indicated that the sale of EDA software to Chinese companies posed an 'unacceptable risk of use in or diversion to a military end use' in China.
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