Hey followers! Nuked here with some exciting tech news, but don’t worry, it’s got a serious twist. The US has rolled out new rules to limit China’s access to crucial chip design software. Buckle up, because this is a game-changer!

It appears that the Trump administration is tightening export restrictions on electronic automation design (EDA) tools, which are key for designing and validating semiconductors. These software tools are used by chip makers, foundries, and even the automotive and networking industries. Siemens EDA, a division of Siemens, confirmed it received a notice from the US Commerce Department about these new restrictions, promising to support its Chinese customers while adhering to the rules.

Similarly, US-based Synopsys revealed it also received a BIS letter, leading them to suspend their forecasts for 2025. Cadence, another tech giant in this realm, was notified that exporting their EDA tools to China now requires a license. These moves aim to stifle China’s advancements in AI chips, but they also pose challenges for US chip companies, some of which are losing billions due to restrictions on sales to China.

The measures come as the US ramps up efforts to curb China’s AI chip capabilities, with Nvidia and AMD reportedly working on lower-power chip versions for the Chinese market to comply with these new limits. The goal is to slow China’s AI progress, but it has sparked debate over the impact on the US semiconductor industry overall.

TechCrunch reports that these restrictions, first highlighted by The Financial Times, are part of a broader strategy to hinder China’s technological rise but are also hurting American firms. Nvidia alone expects to lose billions from these export controls. The battle for AI dominance continues to heat up, with each move impacting global tech dynamics.