Bureau of Industry & Security — the arm of Department of Commerce that oversees export controls — has issued directives to EDA groups — including Cadence, Synopsys and Siemens EDA — telling them to stop supplying their technology to China.
While it accounts for a relatively small share of the overall semiconductor industry, EDA software allows chip designers and manufacturers to develop and test the next generation of chips, making it a critical part in the supply chain.
Synopsys, Cadence Design Systems and Siemens EDA — part of Siemens Digital Industries Software, a subsidiary of Germany’s Siemens AG — account for about 80% of China’s EDA market.
In fiscal year 2024, Synopsys reported almost $1B in China sales, roughly 16% of its revenue. For Cadence, China accounted for $550M or 12% of its revenue.
In his first term as president, Trump banned 
Huawei from using American EDA tools.
Last year Synopsys entered into an agreement to buy US simulation software company Ansys for $35B. The deal still requires approval from regulators.
EDA companies including Empyrean Technology, Primarius and Semitronix have been significantly growing their market share in China in recent years.
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