China’s Top EDA Firms Gain Spotlight After US Chip Design Software Ban

China’s leading electronic design automation (EDA) firms—Empyrean Technology, Primarius Technologies and Semitronix—are drawing increased attention following new US export restrictions on chip design tools.

The US Commerce Department’s Bureau of Industry and Security has directed top global EDA suppliers—Cadence Design Systems, Synopsys and Siemens EDA—to halt software sales to mainland China. The tools are used in developing advanced artificial intelligence chips.

The move is expected to accelerate China’s push for semiconductor self-sufficiency, according to ICBC Credit Suisse Asset Management.

Following the announcement, Shenzhen-listed shares of the three Chinese EDA firms surged. Primarius rose over 22%, Semitronix gained more than 17%, and Empyrean climbed over 8% since the previous Wednesday.

However, by Wednesday, Primarius shares dropped 9.41% to close at 28.80 yuan (USD 4), Semitronix fell 4.19% to 55.85 yuan, and Empyrean declined 4.01% to 125.09 yuan.

Despite the dip, investor interest remains strong as the firms explore new opportunities in the domestic market.

Cadence, Synopsys and Siemens held a combined 82% revenue share in China’s EDA market in 2024, according to a Morgan Stanley research note dated May 29.

Primarius founder and President Yang Lianfeng said in April that the current global environment offers domestic EDA suppliers their best development opportunity yet. He emphasised the need to build a local EDA ecosystem tailored to China’s conditions, rather than replicating foreign products.

Founded in 2009, Beijing-based Empyrean is seen as a key player in reducing China’s reliance on imported EDA tools. The company, now controlled by state-owned China Electronics, aims to become a global EDA leader by 2030.

Primarius, established in 2010 and based in Shanghai, focuses on Design Technology Co-Optimisation, a method that helps chipmakers reduce costs and production time.

Hangzhou-based Semitronix, founded in 2003, currently offers at least six EDA tools.

In 2024, all three firms reported revenue growth. Semitronix was the only one to post a profit, with a net income of 80 million yuan. Empyrean and Primarius recorded losses of 109 million yuan and 96 million yuan, respectively.

Separately, Shanghai-based UniVista, founded by former employees of Synopsys and Cadence, announced it would offer certain EDA testing and assessment tools free of charge to Chinese clients in response to the US ban.

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• US bans top EDA firms from selling chip design tools to China

• Chinese firms Empyrean, Primarius and Semitronix see stock surge

• Primarius calls for building a local EDA ecosystem

Source: SCMP