The US recently introduced new export control rules against China, banning the sale of software to Chinese companies that could be used to develop advanced chips (with GAAFET transistors). TrendForce thinks this move will negatively affect the Chinese semiconductor industry.
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It should be noted that the transistors in question play a key role in the development of microcircuits used in military equipment, including communications and defense satellites. GAAFET enables the production of faster, more energy efficient and more radiation resistant integrated circuits that can be used in many commercial and military applications. Therefore, the export ban on electronic design automation (EDA) software will put Chinese chip manufacturers in a difficult situation.
China is behind the USA in this area.
Empyrean Technology, China’s largest provider of EDA software, is far behind its US competitors in terms of technology development and revenue scale. The world’s two largest EDA vehicle suppliers, Synopsys Inc and Cadence Design Systems Inc, have a total share of 62% in the global market. Both are based in the USA.
According to TrendForce, even if Chinese chip designers and manufacturers have a large stock of licenses for American software, they still depend on these companies for updates. In other words, they may face restrictions on updating the software in question. In other words, we can now say that the entire process will be controlled by the United States.
EDA software is critical
Although it is not expected that Chinese developers will need GAAFET chip development software in the short term, they will need to develop chips suitable for the 3 nm process in the next 3-5 years. Without US software tools, it seems inevitable that Chinese developers will have significant problems creating cutting-edge solutions.
Moreover, Chinese contract chip manufacturers will also need software, so US restrictions on software and equipment sales may negatively affect the long-term development of the Chinese semiconductor industry.
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