Introduction
China’s semiconductor sector is under the global spotlight once again. As Huawei pushes ahead with its Kirin X90 reportedly on 5nm, and Xiaomi stuns with its XRING O1 chip rumored to be built on 3nm, attention is now shifting beyond hardware to the software tools that make these achievements possible: EDA (Electronic Design Automation) platforms.
In late May 2025, Washington expanded its crackdown by restricting U.S. EDA giants like Synopsys, Cadence, and Siemens from servicing Chinese customers without an export license.
As the backbone of chip design, these tools are vital—but China is far from standing still. According to TrendForce and EE Times China, the country’s self-sufficiency rate in EDA software surpassed 10% in 2024, signaling a new phase in its technological push for independence.
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5 Key Highlights
China’s EDA self-sufficiency crossed 10% in 2024, fueled by government support and domestic innovation.
U.S. restrictions bar top EDA firms from supporting Chinese companies without a license, targeting 3–7nm node development.
Domestic EDA firms like Empyrean and Primarius are showing rapid growth, especially for mature-node applications.
Huawei localized EDA tools for 14nm and above, completing validation by 2023 with local partners.
Advanced-node EDA software remains a major bottleneck, as China lacks access to critical tools and leading-edge manufacturing.
EDA: The Hidden Engine of Chip Design
EDA tools are the invisible workhorses that enable the creation of modern chips—from SoCs to GPUs. They support design, simulation, verification, and layout tasks, allowing engineers to map out billions of transistors with precision.
Currently, the global EDA market is dominated by a U.S. triopoly: Synopsys, Cadence, and Siemens EDA. These firms control more than 90% of advanced EDA workflows used by leading foundries and chip designers.
As geopolitical tensions rise, these tools have become a choke point in China’s semiconductor strategy.
Washington’s latest restriction—requiring U.S. firms to get special licenses before offering advanced-node EDA tools to Chinese clients—hits at the heart of China’s next-gen chip ambitions.
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Local Alternatives: On the Rise
Despite the challenges, China’s EDA ecosystem is gradually evolving. TrendForce estimates that self-sufficiency in EDA tools exceeded 10% in 2024—a major jump from previous years.
Domestic firms like Empyrean Technology and Primarius Technologies are benefiting from both state funding and urgent market demand.
Huawei, for instance, has played a key role by collaborating with these firms to build and validate 14nm-and-above design tools.
This strategic effort culminated in full validation by 2023, according to EE Times China, proving that local EDA software can support mature-node chip development effectively.
This progress aligns with China’s larger “Chip Independence” goal outlined in its Made in China 2025 policy, where homegrown innovation in semiconductor tools, equipment, and materials is considered essential.
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Will the Crackdown Backfire?
While the U.S. aims to slow China’s technological rise, some experts suggest the export curbs could produce the opposite effect—incentivizing China to double down on self-reliance. Since EDA development requires tight collaboration between chip designers and fabs, China’s expanding mature-node capacity could accelerate local tool adoption.
However, advanced-node design remains a serious bottleneck. Without access to bleeding-edge EDA platforms, Chinese chipmakers will struggle to design competitive 3nm and 5nm chips for global markets—especially in AI, smartphones, and data centers.
The lack of experience in advanced-node production and verification workflows puts Chinese EDA firms at a technological disadvantage that won’t be easy to close in the short term.
Conclusion
China’s push for EDA independence is gaining momentum, with self-sufficiency hitting a key 10% milestone in 2024.
However, the road ahead is still divided. While U.S. restrictions may accelerate domestic innovation for mature-node EDA tools, they could also block China’s path to advanced-node competitiveness.
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