The EDA software restrictions represent the latest evolution in US-China tech competition, moving from end-product controls to fundamental design capabilities. “US continues to find stranglehold on China with critical software and hardware to cut off access to critical and advanced tools,” Shah said.

The Trump administration is moving to restrict the sale of chip design software to China, people familiar with the matter said, as the US government evaluates a broader policy announcement on the issue.

The Trump Administration has reportedly instructed U.S. electronic design automation (EDA) companies, including Cadence Design Systems (CDNS), Synopsys (SNPS), and Siemens (SIEGY), to cease selling chip design software to Chinese companies.