Tensions between the world’s two biggest economies have flared up after the US unveiled new curbs on the sale of semiconductor design technologies to China. The world's top electronic design automation (EDA) suppliers – Cadence Design Systems, Synopsys and Siemens EDA –recently confirmed that they had received notices from the US Commerce Department’s Bureau of Industry and Security to halt mainland sales of their software, which could be used to develop advanced artificial intelligence chips. The restrictions, however, are expected to help strengthen China’s semiconductor self-sufficiency efforts, according to a research note from ICBC Credit Suisse Asset Management. Following news of the US tech ban, the Shenzhen-listed shares of semiconductor design software vendors Empyrean Technology, Primarius Technologies and Semitronix generated increased interest from investors, who expected these firms to become major alternative EDA suppliers in China. On Friday, Empyrean slipped 1.98 per cent to close at 122.91 yuan (US$17.11). Semitronix declined 2.77 per cent to 53.64 yuan, while Primarius was down 4.12 per cent to 27.66 yuan. Investor interest in the three Chinese companies reflects room for growth, as they tap fresh opportunities in the domestic market. Cadence, Synopsys and Siemens held a combined 82 per cent revenue share in China’s EDA market last year, according to a Morgan Stanley research note on May 29. Domestic EDA suppliers are seeing “the best development opportunity ever” amid changes in the international macroenvironment over the past few years, Primarius founder, president and chief operating officer Yang Lianfeng said in an interview with state-backed newspaper China Electronics News in April. But Yang added that "most domestic single-point tools are still far behind those of foreign companies". That refers to tools designed for separate stages of the chipmaking process, compared to a comprehensive EDA ecosystem. Founded in 2009, Beijing-based Empyrean has long been regarded as one of China’s best hopes to cut reliance on imported EDA technology. Empyrean – which ceded control to state-owned shareholder China Electronics after the firm was put on a US trade blacklist last year – aims to become a leading global EDA supplier by 2030. Primarius, established in 2010 and headquartered in Shanghai, is focused on EDA solutions under its Design Technology Co-Optimisation – a methodology that helps semiconductor fabrication facilities cut costs and production time in advanced process development. Hangzhou-based Semitronix, founded in 2003, has at least six EDA tools in its current product portfolio. Although all three Chinese EDA firms recorded positive revenue growth in 2024, Semitronix was the only one to make a profit, with a net income of 80 million yuan. Empyrean and Primarius recorded losses of 109 million yuan and 96 million yuan, respectively, in the same year. #🇨🇳 ChinA.I. 🤖🧠🦾🤖 https://www.scmp.com/econ..