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China’s SiCarrier subsidiary launches homegrown chip design software amid U.S. tech tensions

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A subsidiary of SiCarrier, a Chinese chip equipment manufacturer with close ties to Huawei, has unveiled two domestically developed chip design software tools, marking another step in China’s drive for semiconductor self-sufficiency, according to Chinese state-backed outlet The Paper.

The SiCarrier unit, called Yunqifang, introduced two electronic design automation (EDA) programs with fully independent intellectual property rights, aiming to reduce China’s reliance on Western technology in chip design. EDA software is critical to developing the blueprints of advanced semiconductors, which are central to modern electronics and artificial intelligence.

The announcement comes as U.S.-China tech tensions escalate. Earlier this year, Washington temporarily restricted exports of EDA tools to China after Beijing suspended exports of rare earths and magnets, which are vital for chipmaking. Analysts have warned that prolonged U.S. restrictions could cripple China’s semiconductor design capabilities, where it still trails the United States.

The timing of the launch coincides with U.S. President Donald Trump’s renewed threats to impose 100% tariffs on Chinese exports and expand export controls on “any and all critical software” by November 1, days before current tariff relief is due to expire.

Founded in 2021 and owned by the Shenzhen city government, SiCarrier has emerged as a strategic player in China’s semiconductor industry, aligning with Beijing’s push for technological self-reliance. Its progress reflects the broader effort to build a complete, homegrown semiconductor ecosystem capable of withstanding foreign trade pressures.

SiCarrier Claims Its Tools Can Help China Develop Advanced Chips

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Chinese chip equipment maker Shenzhen SiCarrier Industry Machines asserted on Thursday that its domestically developed tools could enable China to manufacture advanced semiconductors, despite U.S. export controls on high-end chipmaking technology.

Speaking at the Semicon China industry fair, SiCarrier president Du Lijun noted that while China lacks access to advanced lithography systems due to U.S. trade restrictions, alternative non-optical technologies could be used to produce 5-nanometer (nm) chips. He acknowledged that multi-patterning techniques could increase manufacturing complexity and reduce yields but argued that they provide a viable path for China to progress beyond 7 nm chips.

SiCarrier, founded in 2022 and backed by a state investment fund, supplies major Chinese foundries such as Semiconductor Manufacturing International Corporation (SMIC) and reportedly collaborates with Huawei. The company was among 140 Chinese firms added to the U.S. trade blacklist in December 2023.

The firm’s multi-patterning approach, patented in late 2023, utilizes deep ultraviolet lithography (DUV) and self-aligned quadruple patterning (SAQP) to mimic certain EUV lithography capabilities while reducing costs. This strategy is seen as a potential workaround to Western restrictions on ASML’s extreme ultraviolet (EUV) machines.