U.S. President Donald Trump has reportedly instructed American chip design software companies to immediately stop selling their products to Chinese firms, according to a report published Wednesday by the Washington Post. The directive marks a significant escalation in the ongoing U.S.-China technology war and signals new restrictions on China’s access to critical semiconductor tools.
The report, citing unnamed administration officials, said the move targets key software providers such as Synopsys and Cadence Design Systems. These companies produce electronic design automation (EDA) software used globally for designing and verifying advanced chips.
Trump’s order reportedly stems from national security concerns and aims to slow down China’s progress in advanced chip manufacturing. The directive is also seen as a reaction to recent reports that Chinese tech firms were able to circumvent export controls using U.S.-origin design tools through third-party intermediaries.
The White House has not officially confirmed the move, but the Commerce Department is expected to release new rules detailing the export ban in the coming days. The decision would expand upon previous sanctions and export restrictions placed on Chinese tech companies, including Huawei and SMIC.
According to the Washington Post report, the directive was issued quietly last week following internal briefings with U.S. intelligence and national security advisers. It is expected to disrupt chip development efforts by several Chinese companies and research institutions.
China has yet to issue an official response, but past reactions to similar measures have included strong criticism and countermeasures. Beijing has repeatedly accused Washington of using security concerns as a pretext to suppress Chinese tech growth and maintain global dominance in the semiconductor sector.
Analysts say the restriction could deepen existing supply chain tensions and potentially hurt American companies if retaliatory measures are taken by China. The Chinese market remains a major revenue source for U.S. chip design software firms.
Industry groups have also voiced concern over the sudden nature of the policy shift. The Semiconductor Industry Association (SIA) released a brief statement urging the administration to ensure that national security goals are balanced with commercial interests and the long-term competitiveness of the U.S. tech industry.
If confirmed and fully implemented, the move would significantly hinder China’s domestic chip ambitions, particularly in the development of cutting-edge semiconductors for AI, 5G, and military use. Experts say the absence of U.S. EDA tools could push China to accelerate efforts to develop its own alternatives, although this process is expected to take several years.
The news comes amid a broader tightening of U.S. export policies under the Trump administration. Earlier this month, the U.S. placed new curbs on chip shipments to Chinese firms via third-country suppliers and pressured allies such as the Netherlands and Japan to follow sui
Trump’s broader strategy includes making supply chains more resilient, supporting domestic chip production, and weakening China’s access to Western technology. The administration has pledged billions of dollars in subsidies to expand U.S.-based semiconductor manufacturing.
The expected export ban is likely to intensify already strained U.S.-China trade relations and add further uncertainty to global technology markets.
Source; Al Jazeera
