Donald Trump has ordered top US chip design software firms to stop supplying China, escalating the tech war amid rising semiconductor tensions between Washington and Beijing.
Former US President Donald Trump has issued a directive barring American chip design software firms from selling their products and services to Chinese companies, according to the Financial Times.
The move targets key players in electronic design automation (EDA)—including Cadence, Synopsys, and Siemens EDA—all of which were reportedly notified by the US Department of Commerce to halt business with China.
Commerce Department Steps In
The action comes from the Bureau of Industry and Security, the arm of the Commerce Department that controls tech exports. Several sources familiar with the decision told the Financial Times (paywall) that the directive affects all EDA software used in advanced semiconductor design.
These tools are essential for developing next-generation chips that power everything from AI systems to military-grade hardware.
Part of Broader US-China Tech Clash
This latest measure is seen as an escalation in the ongoing US-China tech war, where semiconductors remain a central battleground. The ban aims to limit China’s ability to develop cutting-edge chips, which Washington sees as a national security risk.
Trump’s move mirrors previous steps taken during his presidency to blacklist Chinese tech firms like Huawei and restrict access to advanced manufacturing tools.
Strategic Tech Decoupling
Analysts say the directive reinforces a strategy of tech decoupling—intended to prevent China from closing the innovation gap in chip design and artificial intelligence infrastructure.
The decision is expected to further isolate Chinese semiconductor developers, many of whom rely on US-based EDA tools to design advanced chips before outsourcing fabrication to foundries.
Global Impact Looms
Industry observers warn that the restriction could disrupt global supply chains and accelerate China’s push for self-reliance in chip technology. Some Chinese companies may turn to local EDA alternatives, but experts say those tools remain years behind their American counterparts.
This move adds pressure as Beijing races to build a fully independent chip ecosystem, a goal prioritized under China’s “Made in China 2025” industrial strategy.
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