US to block China’s access to essential semiconductor design software – Computerworld

“With Cadence and Synopsys being US-based companies and Siemens contributing to more than 90% share of the EDA tools globally, this move further tightens EDA software sales in China,” said Neil Shah, VP for research and partner at Counterpoint Research. “EDA tools cannot be substituted and are the foundation to chip design and manufacturing.”

What makes this strategically different is its upstream focus. Manish Rawat, semiconductor analyst at TechInsights, explained that, unlike previous hardware restrictions, “the new focus on EDA software targets the critical tools essential for designing advanced chips (5nm and below). This upstream control aims to block innovation before chips are manufactured, making it a more preemptive and disruptive tactic.”

Why now?

The timing reflects broader strategic recalibration. Rawat noted that “the US has shifted its strategy, now seeing China’s push for tech self-sufficiency — especially in AI and semiconductors — as a growing national security threat.” Since the 2020 CHIPS Act, coordinated export controls with allies like Japan and the Netherlands have strengthened US resolve.