US government suspends restrictions on chip design software (EDA) for China

The United States government has announced the suspension of an important restriction on the trade of its products to China, as part of the negotiations that now advance among countries. US companies are no longer prevented from selling software for chip design (EDA) to the Asian country.

EDA is an acronym for Electronic Design Automation. Type programs are crucial for the development and advancement of technologies in semiconductors. Due to the strong presence of US companies in the segment, the Trump administration established a restriction on exporting its software to China.

The measure was established to be used as a bargaining chief, as China had determined several sanctions on the export of rare minerals to the US, absolutely necessary in different industries, from aerospace vehicles. Even semiconductor companies were affected.

As the two economic powers advance to reduce their tariff friction, China will relieve restrictions on exports of these minerals, in exchange for suspension in EDA and ethane software restrictions.

Will China remain dependent on US EDA?

EDA software has become especially important to China, as the country tries to become increasingly independent in its semiconductor production. This is why the restrictions imposed by the US in May greatly affected the Asian country.

According to Reuters, the three giants in the area in the US, Cadence, Synopsys and Siemens are responsible for over 70% of the EDA market in China.

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Even so, the Chinese government had recently determined that it would make a readjustment in its Big Fund III to focus on its investments in the national development of EDA programs. Now we have to know how the suspension of US restrictions will affect these local plans.

Meanwhile, the US segment giants have already announced the release of their exports and dawned the three with their actions high on the stock exchange.