The Trump government ordered US companies offering semiconductor design software to stop sales of their services to Chinese companies, in a new attempt to make China more difficult for China to develop advanced microchips.

According to the Financial Times, the US Department of Commerce informed companies operating in the field of Electronic Automation Design (EDA), such as Cadence, Synopsys and Siemens Eda, to discontinue their technology in China.

The Office of Industry and Security (BIS), the Ministry of Commerce, which oversees export controls, sent instructions to companies through letters, according to sources. It was not clear whether all US EDA companies received such a letter.

This move marks a major new attempt by the US government to prevent China to develop advanced artificial intelligence chips, as the US is seeking to have a technological advantage over their geopolitical opponent. In April, the government limited the exports of NVIDIA special AI chips targeting the Chinese market.

An official at the Ministry of Commerce said exports of “strategic importance to China” were being examined.

“In some cases, the ministry has suspended existing export licenses or has imposed additional licensing requirements for the end of the review,” the official said.

Although EDA software is a small percentage of the total semiconductor industry, it is vital to the supply chain, as it allows designers and chip manufacturers to develop and test the next generation of microchip.

Synopsys, Cadence Design Systems and Siemens EDA owns about 80% of the EDA market in China.

In 2022, the Biden government had already imposed restrictions on the sale of the most sophisticated chip design software in China, but companies continued to have products that comply with export controls.