Business Economy


US treads liberalization by lifting chip software curbs on China

New Delhi, July 3 (UNI) In a moderate trade move, the United States revoked its export restrictions on key chip design software providers.
Three major players of the chip design segment, Siemens AG, Synopsys, and Cadence, said that they received letters from the US Department of Commerce regarding the lifting of the restrictions. All three chip majors are contributing to more than 80% of the Chinese EDA (Electronic design automation) market.
Synopsys confirmed this information through their official website, stating that they had received formal orders from the Bureau of Industry and Security of the US Department of Commerce.
The restrictions were imposed by the United States in late May and directly blocked the trade of EDA tools, which were an integral part in semiconductor design. EDA or Electronic Design Automation tools are built from specialized software and hardware components. These are extensively used by engineers for designing, analyzing, stimulating, and verifying electronic systems and circuits.
This rollback of trade-related restrictions will now allow the EDA or Electronic Design Automation companies to provide their services in China. EDA software is the foundational base of semiconductor design systems. Without proper access to services offered by the three major EDA companies, the Chinese chip design market capabilities have reduced significantly.
The rescinding of restrictions on China seems to be a major opportunity for chipmakers who rely on cross-border tech collaboration and trade. Moreover, with the early signs of trade stabilization, further rollbacks of previous restrictions are expected in the upcoming weeks.
UNI SAS RN
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