China’s Semiconductor Software Push Gains Traction Amid U.S. Curbs

Homegrown makers of semiconductor-manufacturing software could capture up to half of China’s domestic market within two to three years, as rising geopolitical tensions and maturing local technologies prompt chipmakers to reduce their reliance on dominant U.S. suppliers, according to a senior industry source.

The shift signals a key turning point in China’s chip supply chain. Local firms are working to replace the digital “brains” of wafer fabrication plants — software systems critical for production coordination — to hedge against potential U.S. export restrictions.

Ye Liguo, president of the smart manufacturing IT division at software firm Wuhan Qiyunfang Technology Co. Ltd., told Caixin that U.S. threats to limit exports of key software have opened the door for domestic players. While China has gained attention for its chip hardware breakthroughs, the software side of semiconductor manufacturing is also advancing from niche usage to broader adoption.