Johnson, who heads the China Strategies Group, a risky consultant company, said China has successfully benefited from strangling it on the rare ground to bring the United States to the negotiating table in Geneva, which “left the China Falcons in Trump keen to show their export monitoring weapons.”
Although it explains a relatively small share of the total semiconductor industry, the EDA program allows chips and manufacturers to develop and test the next generation of chips, making it an important part of the supply chain.
Synopsys, rhythm design systems, and Siemens Eda – part of Siemens Digital Industries Software, a subsidiary of Siemens AG in Germany – for about 80 percent of the Chinese EDA market. Abstracts did not immediately respond to the suspension requests.
In the fiscal year 2024, Synopsys recorded approximately one billion dollars in China’s sales, approximately 16 percent of its revenues. The rhythm said that China represented $ 550 million, or 12 percent of its revenues.
Synopsys shares fell 9.6 percent on Wednesday, while rhythm tools lost 10.7 percent.
Siemens said in a statement that the EDA industry was reported last Friday about new export controls. She said she supported customers in China for “more than 150 years” and will continue to work with our world customers to alleviate the impact of these new restrictions during work according to the applicable national export monitoring systems. “
In 2022, the Biden Administration has provided restrictions on sales of the most advanced chips design programs to China, but companies continued to sell products compatible with export monitoring to the country.
In his first term as president, Donald Trump Huawei prevented the Chinese UDA tools. Huawei is seen as an emerging competitor for NVIDIA with AI chips.
Jensen Huang, CEO of NVIDIA recently warned that successive attempts by American administrations to provide the ecosystem in China of artificial intelligence with export controls have failed.
Last year, Synopsys entered an agreement to purchase ansys, an American simulation software, for $ 35 billion. The deal still requires approval from the Chinese organizers. ANSYS 5.3 percent shares fell on Wednesday.
The US Federal Trade Committee announced on Wednesday that the two companies will need to strip specific software tools to receive its approval of the deal.
The export restrictions encouraged Chinese competitors, as three leading companies in the field of EDA – brown technology, PrimArius, and Seitronix – grow their share in the market in recent years.
The shares of Empyrean, PrimArius and Sementonix increased by more than 10 percent in early trading in China on Thursday.
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