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The EDA Chokepoint Dilemma? Openness, Oligopolies, and China's Ecosystem

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  • Kleinhans, Jan-Peter

Abstract

One of the fiercest domains of U.S.-China technology rivalry centers around semiconductors, which enable advances in a range of strategic and essential sectors—from communications and computing, to healthcare, military systems, and transportation. For policymakers interested in stymying Chinese advances in semiconductors, the perfect chokepoint to exploit through export restrictions is a product that plays an indispensable role in the broader ecosystem and is controlled by very few companies with high market-entry barriers. This paper reviews experience with one such product: electronic design automation (EDA) tools. The author argues that the U.S. and allied governments can use EDA as a chokepoint to curb China’s chip design capabilities in the medium term, but that they should also strengthen incentives for the development and adoption of open-source EDA tools by the broader industry. Supporting the development of open-source EDA tools does not diminish their market dominance at the cutting-edge but “democratizes” chip design at the trailing-edge and mature nodes—of high relevance for industrial, automotive, and health applications.

Suggested Citation

  • Kleinhans, Jan-Peter, 2022. "The EDA Chokepoint Dilemma? Openness, Oligopolies, and China's Ecosystem," Institute on Global Conflict and Cooperation, Working Paper Series qt16d3b8z5, Institute on Global Conflict and Cooperation, University of California.
    • Handle: RePEc:cdl:globco:qt16d3b8z5
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