US reversal on EDA software to China sparks fresh competition for India #shorts #india #china #usa

Amid tariff-induced volatility in global trade, India needs to accelerate its domestic chip design capabilities as competition from China grows, particularly in light of the recent move by the United States to lift restrictions on the sale of Electronic Design Automation (EDA) software to Chinese companies

The reversal of the earlier curbs — originally imposed during President Donald Trump’s tenure — now enables major EDA players like Cadence Design Systems (San Jose), Siemens EDA (Wilsonville), and Synopsys (Sunnyvale) to fully engage with Chinese firms once again.

Speaking to The Economic Times, Ruchir Dixit, chairperson of the India Electronics & Semiconductor Association board of directors, said, “The strengthening capabilities of China’s industry could create increased competitive dynamics, not only for India’s EDA sector but also across the wider electronics and semiconductor industry.”

On the potential shift in the ‘China Plus One’ strategy following the lifting of software curbs, Dixit told ET that companies looking to invest in India for EDA development or related operations may now reassess their timing more carefully.

Synopsys Chief Product Development Officer Shankar Krishnamoorthy, on the other hand, told The Economic Times that the company does not foresee similar software export restrictions being applied to India. He pointed to India’s ambitions to build a strong semiconductor ecosystem and the existing US-India cooperation in the sector as reasons for continued confidence.

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