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TechTech War

Tech war: China’s top three EDA firms under spotlight after US ban on chip design tools

Electronic design automation firms Empyrean, Primarius and Semitronix are poised to drive China’s chip design tools market after the US ban

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The latest US export restrictions on China cover electronic design automation software used for developing semiconductors. Photo: Shutterstock
Ann Caoin Shanghai
Chinese semiconductor design software vendors Empyrean Technology, Primarius Technologies and Semitronix are in the spotlight after Washington directed the world’s leading electronic design automation (EDA) suppliers to halt sales on the mainland under new US export restrictions.
Top EDA suppliers Cadence Design Systems, Synopsys and and Siemens EDA recently confirmed that they had received notices from the US Commerce Department’s Bureau of Industry and Security about the new export controls of their software, which could be used to develop advanced artificial intelligence chips.

The restrictions, however, are expected to help strengthen China’s semiconductor self-sufficiency efforts, according to the latest research note by ICBC Credit Suisse Asset Management.

Following news of the US tech ban, the Shenzhen-listed shares of Empyrean, Primarius and Semitronix initially recorded strong trading, as investors hoped these firms could become major alternative EDA suppliers in China.

Primarius surged over 22 per cent since Wednesday last week, while Semitronix and Empyrean rose over 17 per cent and 8 per cent over the same period, respectively.

On Wednesday, Primarius fell 9.41 per cent to close at 28.80 yuan (US$4). Semitronix slipped 4.19 per cent to 55.85 yuan, while Empyrean was down 4.01 per cent to 125.09 yuan.

Still, investor interest in the three Chinese companies reflects room for growth, as they tap fresh opportunities in the domestic market.

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