Core Viewpoint - The article discusses the significant shift in the Chinese EDA (Electronic Design Automation) industry, highlighting how domestic companies have gained market share and technological capabilities in response to U.S. restrictions on chip design tools, leading to a potential reshaping of the global semiconductor landscape [1][3][11]. Group 1: Market Dynamics - In 2025, the Chinese EDA market is expected to reach 18.5 billion yuan, indicating a substantial market share shift from U.S. companies, which previously dominated with 95% of the market [3][11]. - Chinese EDA companies have captured 20% of the market, demonstrating a strong competitive response to U.S. sanctions [3][11]. - The number of Chinese EDA firms has surged to over 160 by 2025, indicating a robust growth in the sector [7]. Group 2: Strategic Acquisitions - In August 2025, Chinese EDA leader Guangli Micro announced the acquisition of Belgian silicon photonics design automation company Luceda Photonics for 340 million yuan, enhancing its technological capabilities [7][9]. - This acquisition allows Guangli Micro to fill gaps in optical chip design and expand its influence in the European market [7][9]. Group 3: Technological Advancements - Chinese EDA firms have developed comprehensive tools for both digital and analog circuit design, enabling companies to design chips without relying on U.S. software [14][19]. - The introduction of "cloud EDA" services by companies like S2C in collaboration with Tencent Cloud has lowered the entry barrier for small and medium-sized chip companies, allowing them to access design tools without significant upfront costs [16][17]. - AI algorithms have been integrated into EDA tools by domestic companies, significantly improving efficiency in chip design processes, with some tasks being completed up to ten times faster than traditional methods [21][22]. Group 4: Future Implications - The shift in EDA capabilities is seen as a potential "leapfrog" opportunity for China, moving beyond mere replacement of U.S. tools to establishing a new ecosystem that could redefine the semiconductor industry [19][24]. - The article suggests that if China solidifies its position in the EDA sector, it could undermine the U.S. control over the global semiconductor supply chain, leading to a significant reallocation of industry power [24][26].