[News] U.S. Restricts EDA Tools, Jeopardizing Xiaomi’s Self-Designed TSMC Chips

The U.S. has reportedly imposed new restrictions on the export of EDA software to China. According to Economic Daily News, citing Financial Times, Xiaomi is among the major companies likely to be affected—particularly following the launch of its XRING 01 SoC, which is manufactured using TSMC’s advanced 3nm process.

The report notes that the design of Xiaomi’s self-developed XRING 01 mobile processor reportedly involved licensed tools and technologies from several U.S. EDA companies—many of which are now subject to the newly imposed export controls.

Beyond Xiaomi, other Chinese companies—including Lenovo, the world’s largest PC maker, and Bitcoin mining equipment firm Bitmain—have also used U.S. EDA tools in their in-house chip development, with production outsourced to TSMC, according to the report, citing sources.

As the report highlights, U.S. export controls have barred TSMC from producing advanced AI chips for Chinese firms. However, processors used in smartphones, tablets, and other less advanced chips are generally not covered by these restrictions.

Xiaomi’s ambitions also extend to the development of automotive chips. According to Mydrivers, CEO Lei Jun stated that the company will soon begin working on auto chips.

Additionally, Economic Daily News notes that major Chinese tech firms such as Alibaba and Baidu are also pursuing in-house chip development, though the actual impact of the EDA restrictions on their initiatives remains uncertain.

China’s Drive for Homegrown EDA Solutions

Meanwhile, Tom’s Hardware notes that China has been actively working to develop its own EDA tools in a bid to reduce reliance on U.S. technology, with Huawei identified as one of the key players in this effort. According to the report, Empyrean and Primarius Technologies have each created their own EDA platforms, while Semitronix focuses on electrical testing and improving semiconductor yield.

However, as EE Times points out, the U.S. has also directly targeted Chinese EDA firms—adding Empyrean Technology to the Entity List in December 2024, a move that could restrict its access to critical technologies and components.

Although Chinese EDA tools have not yet reached the cutting edge of chip design, sources cited by Tom’s Hardware indicate they are sufficiently advanced for use with mature process nodes, such as 7nm and above.

In addition, citing Financial Times, Tom’s Hardware notes that some smaller Chinese companies reportedly rely on pirated versions of EDA software from Synopsys and other U.S.-based firms.

Read more

• [News] China Revenue at Risk as U.S. Curbs Slam EDA Giants: Impact on Synopsys, Cadence and More
• [News] US Rumored to Order EDA Giants to Halt Support in China, Jeopardizing Local 3–7nm Development

(Photo credit: Xiaomi)