Core Viewpoint - TSMC's EDA alliance membership has decreased from 16 to 13 members, indicating a shift in the competitive landscape of the EDA industry, with the inclusion of domestic player Primarius and the exclusion of Empyrean [1][2]. Group 1 - TSMC's latest EDA alliance member list shows a reduction in members from 16 in 2024 to 13 in 2025, with major players Synopsys, Cadence, and Siemens EDA remaining dominant [1]. - Four companies, including Primarius, have made their debut in the alliance, while seven companies from the previous year, including Empyrean, are no longer listed [1][3]. - Primarius is recognized as the first domestic EDA listed company with competitive core technologies in the international market, focusing on comprehensive EDA solutions for integrated circuit design and manufacturing [3]. Group 2 - The inclusion of Primarius in the EDA alliance signifies a deeper collaboration with TSMC and represents a breakthrough for domestic EDA firms in adapting to international advanced processes [4].

Core Viewpoint - The A-share EDA (Electronic Design Automation) companies experienced a significant stock price increase, indicating a positive market sentiment towards the sector amid ongoing developments in the industry [1]. Industry Overview - The EDA industry is highly concentrated, dominated by three major players: Cadence, Synopsys, and Siemens EDA, which hold a significant competitive advantage [4]. - Chinese companies like Huada Jiutian, Gai Lun Electronics, and Guangliwei are emerging as key players, with Huada Jiutian focusing on comprehensive digital EDA solutions, Gai Lun Electronics specializing in analog circuit design, and Guangliwei concentrating on EDA verification tools [5][6]. - The domestic EDA market is witnessing a push for localization, driven by the need for independent EDA tools due to restrictions on software access [4]. Mergers and Acquisitions - The trend of mergers and acquisitions is prevalent in the EDA industry, with nearly 300 acquisitions occurring over the past 30 years, highlighting the importance of consolidation for growth [5]. - Huada Jiutian and Gai Lun Electronics have initiated their own acquisition strategies to enhance their capabilities and market position [6]. - Gai Lun Electronics' acquisition of Ruicheng Semiconductor is expected to strengthen its IP layout and improve product development efficiency [6]. Competitive Landscape - The primary gap between domestic EDA firms and international leaders lies in the lack of a full-process capability and weaknesses in certain areas, such as system-level EDA tools and high-end IP library development [7]. - The domestic EDA companies are expected to gradually catch up in specific segments, but overall integration and consolidation will be necessary to close the gap with global leaders [7].