The US has lifted restrictions imposed by President Donald Trump on leading Electronic Design Automation (EDA) software companies that serve China. This move allows these companies, including San Jose-headquartered Cadence Design Systems, Wilsonville-headquartered Siemens EDA, and Sunnyvale-headquartered Synopsys, to resume full engagement with Chinese entities.
The decision is expected to increase competitive dynamics in the EDA sector not only for India’s electronics industry but also across the broader electronics and semiconductor industry. Ruchir Dixit, chairperson of the India Electronics & Semiconductor Association (IESA) board of directors, stated that the lifting of software curbs will create increased competitiveness.
Dixit noted that companies considering investing in India for EDA development or other functions should carefully evaluate their timing. However, Shankar Krishnamoorthy, chief product development officer at Synopsys, believes that such restrictions are unlikely to be placed on India due to the country’s ambition to build its semiconductor ecosystem and existing US-India collaboration.
Experts, including Biswajeet Mahapatra of Forrester, caution that this move signals increased competition. With China regaining access to critical design software, the Chinese chip industry can accelerate its R&D and manufacturing, potentially intensifying the race for global market share and foreign investment, especially in areas like design and packaging where India is also making strides.
Kunal Chaudhary of EY India emphasized the need for India to act swiftly. He stressed that building a domestic chip design software is a strategic necessity for resilience and leadership in semiconductor innovation. Experts agree that India must leverage this stability to further its own domestic capabilities, invest heavily in R&D and skill development, and solidify its position in the global semiconductor landscape.
Source: https://economictimes.indiatimes.com/tech/technology/us-move-to-lift-chip-software-curbs-on-china-puts-india-on-alert/articleshow/122391334.cms?from=mdr