[News] Chinese EDA Company X-Epic Reportedly Slashes up to 50% of Its Workforce

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X-Epic, a prominent Chinese electronic design automation (EDA) start-up, is said to be reducing its workforce by up to 50%, according to a report by South China Morning Post. As chip design is an indispensable part to semiconductor manufacturing, the incident raises concerns about China’s push for technological self-reliance.

X-Epic, founded in 2020 by Wang Libin, a former engineer at US EDA leader Cadence Design Systems, has been established with the goal of creating indigenous EDA tools to challenge the dominance of US rivals. The field is traditionally governed by US giants including Cadence, Synopsys, and Mentor Graphics (now owned by Siemens).

Based on the definition by Cadence, EDA encompasses software, hardware, and essential services used in the design of chips and semiconductor devices. Historically, hardware architects sketched chip designs by hand and used isolated tools. However, alongside the rapid growth of AI, EDA has become indispensable as chip designs get complicated. The tool provides a simulated environment where circuits and designs are conceived and analyzed before being realized in the physical world.

According to the report, as of March, 2023, X-Epic employed approximately 400 people across offices in Nanjing, Beijing, Shanghai, Chengdu, and Shenzhen. However, the company began laying off up to half its employees recently across various departments, including its key research and development division.

The report further analyzes that in In August 2022, Washington first restricted China’s access to the EDA technology by prohibiting the export of gate all-around (GAA) capable EDA software, which creates challenges for Chinese chipmakers in adopting advanced processes such as the 3nm node and in developing high-performance computing or AI chips.

Citing data from the China Semiconductor Industry Association, the report notes that the value of China’s EDA market is projected to reach 18.5 billion yuan (USD 2.55 billion) next year, up from 9.3 billion yuan in 2020. As the market seems to be booming, X-Epic’s reported layoff highlights the challenges China’s EDA companies are facing.

Read more

• New US EDA Software Ban May Affect China’s Advanced IC Design, Says TrendForce

(Photo credit: X-Epic)