Looks like ol' Trump and his posse have slapped some fresh export controls on that fancy chip design software, aiming to throw a wrench in China's plans to whip up and wrangle advanced AI chips.
The Sheriff’s New Laws
Outfits like Siemens EDA, Cadence Design Systems, and Synopsys got wind from the U.S. Commerce Department 'bout these shiny new rules on electronic automation design (EDA) software hitching a ride to China.
What the Tools Do
Now, these EDA tools are the unsung heroes, helpin' with designing semiconductors, testin', and ridin’ herd on performance and quality. They're used by outfits across the board from chip making to network hardware, even the good ol' auto industry.
Siemens EDA's Tale
Siemens EDA, part of that big German tech outfit Siemens, spilled the beans to TechCrunch 'bout getting a message from the Bureau of Industry and Security (BIS) last week 'bout these new rules, especially concerning China and their military folks.
"We've been in cahoots with China for more than 150 years," said the company. "We're gonna keep rustlin' up solutions for our global customers while obeyin' the export laws."
Synopsys and Cadence Weigh In
U.S.-based Synopsys, another EDA software wrangler, chirped on Thursday 'bout gettin' a similar smoke signal from BIS. They're even reconsiderin' their playbook for the third quarter and eyeing the full-year 2025 like a hawk.
Cadence, too, got a missive from BIS saying folks need a license for "export, re-export or in-country swappin' of EDA software" to their pals in China.
First signed off by those sharp-dressed folks at The Financial Times.
U.S. and China: The Showdown
These here new rules come as the U.S. rides hard to put a hitch in the giddy-up of Chinese companies as they duke it out in the AI rodeo. But these export spurs are bitin' into the U.S. chip industry too, which has had a good run under the Chinese sun.
Nvidia, for instance, has taken a mighty hit with billions in losses due to sales restrictions of its H20 and Hopper AI chips to Chinese cowpokes. Word has it they, alongside rival AMD, are aiming to sell lower-powered chip versions to their Chinese customers.
The U.S. Commerce Department ain’t given word back yet, keepin' things tighter than a new pair of boots.