No, because EDA industry makes no money in China.
US restricts chip design software sales to China
- Thread starter Daniel Nenni
- Start date
You can get almost all synopsys/Cadence/Magma newest products and unlimited license for less than 10K USD in Taobao.
The Chinese Government was working with EDA to decrease piracy so yes EDA makes significant money in China. According to the recent Synopsys’ financial report, Synopsys claimed $990 million from China in FY2024 which is about 16% of its total revenue. Cadence’s 2024 earnings report claimed $550 million from China which is about 12% of its total revenue.
I think it is an idiotic move from the idiotic politicians. Yes it may slow down the China semiconductor design work a small amount but it will hurt US companies a large amount.
I couldn't agree more. We are making shooting ourselves in the foot a new olympic sport.
how much of that close to $1B FY2024 revenue were IP versus S/W?
access to license is one thing (and people have pointed out many creative ways to do so), close support from official tool vendors are something that can impact design house more directly, especially one is doing any leading edge design. No EDA tools work properly throughout project life cycle w/o support.
Synopsys revenue is about 30% IP but specifically to China I do not know. They do not break it out regionally. I guess IP is not covered in this new restriction. I wonder how difficult it will be to get the export license? Will they be checking the China company naughty and nice list?
"The U.S. has ordered companies that offer software used to design semiconductors to stop selling to China without first getting an export license, two people familiar with the situation said."
siliconbruh999
Well-known member
As long as US get's the hold the politician properly will be happy
.A timeline:
5/29: "Trump bans sales of chip design software to China"
arstechnica.com
5/30: "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!," he (President Trump) wrote on Truth Social on Friday.
6/3: "Global alarms rise as China's critical mineral export curbs take hold"
6/3: "What to Know About China's Halt of Rare Earth Exports"
-"Last week, Ford temporarily closed its Ford Explorer sport utility vehicle factory in Chicago for a week for lack of magnets."
-"A few European companies have obtained supplies, like Volkswagen, but others have not. Shipments to Europe have been interrupted, and some factories there may have to close temporarily even though China is trying to improve relations with Europe."
-"For metals like dysprosium and terbium, so-called heavy rare earths that are used for heat-resistant magnets, China’s refineries produce up to 99.9 percent of the world’s supply."
-"Gasoline engines and many electric motors produce considerable heat, so the car industry mostly buys rare earth magnets with dysprosium or terbium included. Right now, China is selling almost none of these heat-resistant magnets."
5/29: "Trump bans sales of chip design software to China"
Trump bans sales of chip design software to China
Move is another attempt to make it tougher for China to develop cutting-edge AI hardware.
arstechnica.com
6/3: "Global alarms rise as China's critical mineral export curbs take hold"
6/3: "What to Know About China's Halt of Rare Earth Exports"
-"Last week, Ford temporarily closed its Ford Explorer sport utility vehicle factory in Chicago for a week for lack of magnets."
-"A few European companies have obtained supplies, like Volkswagen, but others have not. Shipments to Europe have been interrupted, and some factories there may have to close temporarily even though China is trying to improve relations with Europe."
-"For metals like dysprosium and terbium, so-called heavy rare earths that are used for heat-resistant magnets, China’s refineries produce up to 99.9 percent of the world’s supply."
-"Gasoline engines and many electric motors produce considerable heat, so the car industry mostly buys rare earth magnets with dysprosium or terbium included. Right now, China is selling almost none of these heat-resistant magnets."
Most cheapo motors, like ones moving wipers, and pumps, are not permanent magnet based. Large traction motors almost never use PM, let alone generators.
I think when Toyota designed Prius with a fairly low power PM motor, everyone started to copy Toyota, without understanding how bad of a design choice it was for a main traction motor.
siliconbruh999
Well-known member
btw I wonder what this will do I can simply Bypass the EDA restrictions .I will just make a large VM licence and Install EDA tools on it and than simply distribute the same image and the image will be activated in non restricted country.
This is not a advice on how to bypass EDA Restrictions this is just purely my thoughts on how easy it is to bypass it
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This is not a advice on how to bypass EDA Restrictions this is just purely my thoughts on how easy it is to bypass it
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user nl
Active member
btw I wonder what this will do I can simply Bypass the EDA restrictions you. I will just make a large VM licence and Install EDA tools on it and than simply distribute the same image and the image will be activated in non restricted country.
This is not a advice on how to bypass EDA Restrictions this is just purely my thoughts on how easy it is to bypass it
Software seems/is always (?) easier than hardware:
https://www.nytimes.com/2025/06/02/business/china-rare-earths-united-states-supplies.html
Yup. Mining and processing rare earth metals are both messy and polluting. The mining aspect has been bought up by China while the US has been asleep at wheel. Processing plants combined with US environmental laws and the resulting high operation costs are uncompetitive, and China just does what's necessary, and capitalized on the US lack of attention. I'd like to think we're learning a tough lesson, but I doubt we're doing what's necessary.
user nl
Active member
Not sure who is "we", my impression is that neither Trump nor sometimes the majority of US voters are able to learn "tough lessons". Hopefully, in 2026 the US voters will do some "hard" work.
In the meantime the Chinese are simply doing their own "hard" work:
https://www.nytimes.com/2025/06/04/business/china-rare-earth-smuggling.html
"We" is our elected officials. Anyone studying US history could easily argue with lots of evidence that as a nation we are often caught being asleep at the wheel. And then when we get in trouble over it, we dust ourselves off and do what's necessary, and usually at great cost.
Domestic wages in China are only half as much as in Brazil.
user nl
Active member
I'm not impressed by the quality of some of your "elected" officials. Running a country is something else than running a casino, I hope. Some seem to think that having an opinion (and money in the US) is sufficient to run a country.
The Dutch voters will have perhaps "learned" their own lessons after twice allowing the "Dutch Trump" in executive power, he failed twice. Let's see what the Dutch will vote for in the Fall 2025. And what the US voters will do in Nov 2026, the world will be watching........
https://www.theguardian.com/world/2025/jun/04/geert-wilders-plan-netherlands-leader-may-well-backfire