Challenges in Accessing Chip Design Software (EDA) and Implications for the IC Design Industry

One of the major challenges facing the IC design industry is access to and use of chip design software (EDA), particularly as technology export controls between nations tighten.

According to Reuters and Bloomberg, on July 3 2025, the U.S. lifted certain export restrictions on chip design software to China, allowing firms such as Siemens AG, Synopsys, and Cadence to restore access for Chinese customers.

Conversely, just two months earlier (in May 2025), the U.S. had imposed stricter curbs on EDA exports to China.

Impacts on the IC Design Sector

• Export controls on EDA software can significantly affect the ability of restricted countries to design advanced chips - in turn limiting both national and corporate IC design capabilities.

• Modern IC design depends not only on logic and physical design but also on the availability of EDA tools, IP libraries, and chiplet/packaging integration. If any link in this ecosystem is disrupted, the entire value chain can be compromised.

• For global or multinational firms, software export restrictions and technology ownership issues represent strategic risks that require proactive management.

Access to chip design software has become a strategic asset for the semiconductor sector as a whole. Amid global technology rivalry and policy realignment, companies and nations must proactively assess risks surrounding design tools, IP, and cross-border cooperation.

Sources:

• Reuters, “As trade war truce with China holds, US lifts curbs for chip …,” Jul 4 2025.

• Bloomberg, “US Tightens China Chip Curbs by Targeting Design Software,” May 28 2025.