Sales revenue in China’s chip design sector rose by 16.5% YoY to CNY 534.57bn ($78bn) last year, according to preliminary data from the China Semiconductor Industry Association (CSIA). The sector’s resilience is showcased amid US export restrictions. Wei Jianguo, former vice-minister of commerce, and vice-chairman of the China Center for International Economic Exchanges, highlighted the importance of strengthening indigenous research and development in the chip industry, which requires significant capital, talent, and technology. Huawei Technologies Co has partnered with domestic companies to develop electronic design automation (EDA) tools for chips above 14 nanometers. The development of EDA tools marks a crucial breakthrough for China’s semiconductor industry amid US government restrictions.
Huawei Develops EDA Tools for Chips Above 14nm in Partnership with Domestic Companies
Huawei Technologies Co has announced that it has achieved a significant breakthrough in China’s semiconductor industry by developing electronic design automation (EDA) tools for chips above 14 nanometers. The company partnered with domestic companies to complete the localization of the EDA tools, which are considered midrange products. The tools are widely used in the sector and are crucial for designing chips.
The breakthrough is a crucial step for China’s semiconductor industry, especially since China has long relied on US companies like Cadence and Synopsys for EDA tools. Huawei’s EDA tools for chips above 14nm will enable Chinese semiconductor enterprises to lower research and development costs and accelerate efforts to achieve breakthroughs in core technologies.
Huawei’s rotating chairman, Xu Zhijun, confirmed that the company completed the localization of EDA tools for chips above 14nm by partnering with domestic partners and will complete comprehensive verification this year. Xu added that Huawei replaced 78 software tools affected by the US government’s ban on domestically developed tools, ensuring the continuity of its research and development efforts amid US restrictions.
The progress in EDA tools is part of Huawei’s broader push to develop domestic development tools for hardware, software, and chips amid the US government’s lingering restrictions. Xiang Ligang, director-general of the Information Consumption Alliance, said that the US government’s export controls over advanced chip technologies to China are motivating Chinese companies to double down on the allocation of resources to achieve breakthroughs.
The announcement had a positive impact on the market, with shares of Chinese companies involved in electronic design automation climbing on Friday. Shenzhen-listed Empyrean Technology Co, for instance, rose by more than 2 percent. A string of Chinese insurance companies has also created tailor-made insurance services to promote the use of domestically developed chip products such as EDA tools, according to people familiar with the matter.
Huawei will redouble its efforts to attract more global talent to achieve a strategic breakthrough in the area, said Xu. Although the company has achieved many breakthroughs in product development tools over the past three years, it still faces formidable challenges.
Chinese Chip Design Sector Resilient Amid US Export Restrictions
Preliminary data from the China Semiconductor Industry Association (CSIA) shows that sales revenue in the Chinese chip design sector reached 534.57 billion yuan ($78 billion) last year, a 16.5 percent increase year-on-year, highlighting the industry’s resilience amid US export restrictions. Wei Jianguo, former vice-minister of commerce and vice-chairman of the China Center for International Economic Exchanges, emphasized the need to strengthen indigenous research and development efforts in the chip industry, which requires significant capital, talent, and technology to ensure healthy development.
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