According to a report by the Financial Times, the administration of US President Donald Trump has instructed major American firms involved in Electronic Design Automation (EDA) to stop supplying their software to Chinese companies. This move is part of an ongoing effort to restrict China’s access to critical semiconductor technology.
The Commerce Department’s Bureau of Industry and Security reportedly issued the order, targeting top EDA firms such as Cadence, Synopsys, and Siemens EDA.
National security concerns driving the decision
The directive is seen as an extension of Trump’s hardline stance against China’s growing technological advancement, especially in sectors considered vital for national security. The decision aims to limit China’s ability to develop advanced chips that could be used in military and surveillance technologies.
While there has been no official public announcement, sources told the Financial Times that the companies were privately instructed to stop the export of certain software tools immediately.
Implications for global tech and chip supply
This move is expected to further strain the already tense tech relationship between the US and China. China relies heavily on US-based design tools to manufacture advanced semiconductors. Blocking access to such tools could significantly delay China’s progress in chip development.
The decision may also affect global semiconductor supply chains, especially at a time when the world is grappling with chip shortages and increasing geopolitical competition in technology.
Ongoing US-China tech battle
This development is part of a broader campaign by the US to curb China’s ambitions in becoming a tech superpower. Earlier restrictions targeted companies like Huawei and SMIC, with this new ban intensifying the pressure.
Industry watchers now await Beijing’s response, which could include retaliatory measures or increased investment in domestic chip design capabilities.
More updates are expected as the situation develops and companies begin to adjust their operations in compliance with the US directive.