The recent US decision to ease export restrictions on Electronic Design Automation (EDA) software to China represents a significant shift in the global semiconductor landscape. While this development may appear to benefit Chinese chip manufacturers, the implications for India’s semiconductor ambitions are far more complex and potentially transformative.

In May 2025, the Trump administration initially imposed stringent controls on EDA software exports to China, requiring licences for the sale of critical chip design tools from companies like Cadence, Synopsys and Siemens. However, just weeks later, the US government reversed course, lifting these export restrictions as part of a broader bilateral agreement. This reversal, negotiated during talks in London in June 2025, saw the US agree to lift export restrictions on chip design software in exchange for China’s commitment to approve exports of rare earth elements to the US.

Link: https://indianexpress.com/article/opinion/columns/us-eases-restrictions-on-china-india-semiconductor-ambitions-10133328/