--- title: "US chip design software firms will be squeezed yet further by Beijing’s EDA push." description: "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 d" url: "https://bilby.ai/predictions/p/185/us-chip-design-software-firms-will-be-squeezed-yet-further-by-beijing-s-eda-push" markdown: "https://bilby.ai/predictions/p/185/us-chip-design-software-firms-will-be-squeezed-yet-further-by-beijing-s-eda-push.md" index: "https://bilby.ai/llms.txt" --- > For agents: Bilby answers questions about what governments do, from documents collected at source and checked by research analysts. To ask Bilby yourself, connect to its MCP server at https://pulse.bilby.ai/mcp (setup: https://docs.bilby.ai/developers/mcp-server). Every page on this site is also markdown: add .md to its address, or send Accept: text/markdown. https://bilby.ai/llms.txt lists them all. # US chip design software firms will be squeezed yet further by Beijing’s EDA push. - **Made:** 26 Oct 2026 - **By:** Owen Bae - **Market:** China - **Outcome:** Unresolved 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. [Ask Bilby about this prediction](https://pulse.bilby.ai/?prompt=US%20chip%20design%20software%20firms%20will%20be%20squeezed%20yet%20further%20by%20Beijing%E2%80%99s%20EDA%20push.) ## Ask Bilby about it Carry the prediction into a question: what has changed since, who decides, and who is exposed. - [What has changed since it was made?](https://pulse.bilby.ai/?prompt=What%20has%20changed%20since%20Bilby%20predicted%20this%3F%20US%20chip%20design%20software%20firms%20will%20be%20squeezed%20yet%20further%20by%20Beijing%E2%80%99s%20EDA%20push.) - [Who decides whether it happens?](https://pulse.bilby.ai/?prompt=Who%20decides%20whether%20this%20happens%3F%20US%20chip%20design%20software%20firms%20will%20be%20squeezed%20yet%20further%20by%20Beijing%E2%80%99s%20EDA%20push.) - [Who gains and who loses if it does?](https://pulse.bilby.ai/?prompt=Who%20gains%20and%20who%20loses%20if%20this%20happens%3F%20US%20chip%20design%20software%20firms%20will%20be%20squeezed%20yet%20further%20by%20Beijing%E2%80%99s%20EDA%20push.) ## More from China 37 predictions on China so far, newest first. - 9 Nov 2026 · [Costly winter gas purchases will push CPC’s accumulated losses to about NT$127.6 billion by the end of 2026](https://bilby.ai/predictions/p/209/costly-winter-gas-purchases-will-push-cpc-s-accumulated-losses-to-about-nt-127-6) · Unresolved - 6 Nov 2026 · [Nvidia is likely to win additional computing orders by the end of 2027.](https://bilby.ai/predictions/p/208/nvidia-is-likely-to-win-additional-computing-orders-by-the-end-of-2027) · Unresolved - 5 Nov 2026 · [China’s IPO restrictions will redirect billions of yuan towards private financing.](https://bilby.ai/predictions/p/205/china-s-ipo-restrictions-will-redirect-billions-of-yuan-towards-private-financin) · Unresolved [All 37 from China](https://bilby.ai/predictions/log?tag=china) · Marked true or false when each resolves ## See what we’re seeing next. New predictions in the Asia Daily Take, free every weekday, and in Bilby whenever you have a question. [Get the Asia Daily Take](https://bilby.ai/asia#asia-daily-take) · [Try Bilby](https://pulse.bilby.ai/sign-up)