US chip design software firms will be squeezed yet further by Beijing’s EDA push.

On 23 October, China released its 15th Five-Year informatisation plan, making electronic design automation (EDA) software a national priority. This means more government funding for Chinese software developers and stronger incentives for chipmakers to use their products. As local tools improve, more Chinese chipmakers are likely to replace US software, taking licence revenue away from US suppliers. China’s Empyrean Technology is well placed to benefit. Its EDA software supports more than 70% of domestic foundry manufacturing processes. Meanwhile, US export restrictions introduced in May 2025 have made US software a less reliable option for Chinese customers. China’s share of Synopsys’s global revenue has since fallen from 16.2% to around 12%. China accounts for roughly 15% of Synopsys and Cadence’s revenue, worth a combined US$1.45 billion.