The United States and other Western countries have been the movers of the semiconductor market for a while. China has lagged behind due to its historical reliance on US technology. However, this narrative may soon be a thing of the past. Chinese firms like Huawei and others are catching up at a faster pace. Huawei has just made another breakthrough in EDA tools while other Chinese firms are going even further.
Huawei recently made an exciting breakthrough in 14nm semiconductor EDA tools. Furthermore, a new report reveals that other Chinese companies are gearing up for even more advanced chipset nodes. The reports say that these Chinese firms are preparing for 7nm and 5nm.
Empyrean Technology Co, China’s largest EDA company, is reportedly preparing to develop advanced EDA software. This advanced software is tailored for 7nm and 5nm chipsets. At the moment, there are no specific details about this. However, this clearly highlights China’s commitment to innovations.
Empyrean Technologies made these announcements during the Q1 business report. At the announcement, the firm also reported a remarkable financial growth. The company’s revenue reached 160 million Yuan. This represents a year-on-year growth of 64.71%. 
More significantly, the company’s net profit rose to 21.1462 million Yuan. This represents a massive year-on-year growth of 101.71%. However, the shareholders of the listed company benefit from all the profit. That is, after deducting recurring gains. Empyrean Technology also highlighted their plans for the future industry development. The company’s plan is to focus on three key areas of EDA technology.
First of all, they aim to finalize the development of new products and development lines. Secondly, Empyrean technology intends to enhance support for advanced processing. They also aim to upgrade their production to accommodate 7nm and 5nm technologies.
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Finally, the company wants to continue searching for breakthrough solutions. Also, they will dedicate more time to promote new products. Furthermore, they will optimize and upgrade their existing tools. In terms of EDA products and other related technologies, the company will also boost the support capabilities of these areas.
Huawei 14nm EDA Breakthrough, What is EDA? 
First of all, EDA is the acronym for Electronic Design Automation. EDA is a set of tools which include software, hardware and services. They are used in the design of semiconductors. EDA is important from the beginning to the end of chip manufacturing. It assists in the definition, planning, design, implementation, verification, and manufacturing of chips.
As it stands now, Empyrean Technology has not yet revealed the exact details of its 7nm and 5nm EDA breakthrough. So, we will have to wait for further information from the company.
Huawei’s Contribution in the EDA Breakthrough
After the United States blocked Huawei’s chip supply chain, it urged Chinese chip firms to speed up their work in order to fix the issue. Huawei went further to collaborate with other Chinese chip companies in order to build chipset technologies.
As you may already know, EDA breakthrough requires a lot of work, time and investments. China may be late to the party, but the party is not over yet. The collaboration between Huawei and other chip manufacturing partners speaks a lot. These companies are already targeting 5nm within a few years of coming together. If they are able to achieve this sooner, it will take China fewer years than expected to catch up with the US in the chip business.
This possibility may not be much of good news to the American chip business. This is because most of the phone manufacturing companies are Chinese companies. Therefore, these companies may opt for Chinese made chips rather than foreign chips. At the end of it all, the end user becomes the biggest benefactor. Chinese chip companies will have the ability to compete with other chip-making giants which will definitely bring out the best chips for the end user.
