Recently, the US government has escalated its restrictions on China's semiconductor industry. According to insiders, the Trump administration has ordered US electronic design automation (EDA) software manufacturers to halt shipments to China. This move is the latest manifestation of the US's ongoing pressure on China's technology sector, sparking widespread attention and discussion.

Actions by the US Department of Commerce

Last Friday, the US Department of Commerce's Bureau of Industry and Security (BIS) sent letters to several leading EDA suppliers, including Cadence, Synopsys, and Siemens, requesting that they suspend shipments to Chinese customers. This measure is part of the US government's review of exports that are strategically significant to China. According to a spokesperson for the US Department of Commerce, some existing export licenses have been suspended during the review period, and additional license requirements have been imposed.

Industry Impact and Market Reaction

EDA software is a core tool for chip design, with virtually all chip design companies relying on these tools to complete complex design tasks. Cadence, Synopsys, and Siemens are the three major players in the global EDA market, holding the majority of the market share. If these companies were to truly cease shipments to China, it would deal a significant blow to China's semiconductor industry, particularly in the field of high-end chip design.

Affected by this news, Synopsys and Cadence's stock prices plummeted by 9.64% and 10.67%, respectively, in US trading on May 28. This indicates that the market is concerned about the uncertainty of this policy. However, Synopsys CEO Sassine Ghazi stated in a financial results conference call that the company has not yet received an official notice from the BIS, and its business in China remains unchanged for now.

Responses from China

According to reports, executives and internal staff of Synopsys, Cadence, and Siemens EDA in China have all indicated that they have not yet received official notices, and domestic business operations remain unchanged. However, some industry insiders have revealed that these companies have indeed received notifications from the US BIS, though the specific content remains unclear. As of now, the news of a cutoff of EDA support services to Chinese customers has not been fully confirmed.

China's Semiconductor Industry in Response

In the face of US restrictions, the independent development of China's semiconductor industry has become particularly important. In recent years, China has made certain progress in the EDA field, with some domestic EDA companies emerging. For example, companies like Unicad have achieved technological breakthroughs in certain areas. However, it will still take time and continuous investment to fully replace products from international giants.

Future Outlook

This restrictive measure by the US may further intensify competition in the technology field between China and the US. While facing external pressure, China's semiconductor industry will also accelerate the pace of independent innovation. On one hand, domestic companies need to strengthen technology research and development to enhance their competitiveness; on the other hand, the government and relevant institutions also need to increase support for the semiconductor industry to promote coordinated development across the entire industry chain. 

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