US to Expand Controls of Chip Exports to China

The US government is setting new rules to tighten the screws on China’s chip sector even more than now. The Commerce Department advised major suppliers of chip design software to stop shipments to customers in China.

The department’s Bureau of Industry and Security sent letters to providers of electronic design automation tools. Leading suppliers are Cadence Design Systems, Synopsys, and Siemens. A Commerce Department representative said that, as it conducts a review of strategic exports to China, it canceled some existing export licenses and imposed additional license requirements.

China accounted for 11% of Cadence’s revenue in Q1, compared with 12% a year earlier, while the mainland made up 9.8% of Synopsys’ revenues, down from 15.2% in 1Q24. The Bureau of Industry warned last month that using mainland AI semiconductors, including Huawei’s Ascend ICs, risks violating US export controls. Current US restrictions severely limit China’s chipmakers from importing the most advanced manufacturing systems.