Months after finishing a serious undertaking, main Chinese language chip growth software program agency cuts half of workforce: Report
X-Epic, a number one Chinese language chip design software program developer, is slicing its workforce by as much as 50%, stories the South China Morning Post. Only a few months in the past the corporate completed a major project: it developed an digital design automation (EDA) suite that covers quite a lot of points of chip design that works on processors made in China, a serious breakthrough for Tianxia’s semiconductor business. Nevertheless, X-Epic has to cut back headcount amid ‘market headwinds.’
The job cuts, which began this week, have an effect on a number of departments, notably the core analysis and growth unit, in line with sources conversant in the scenario, who most well-liked to stay nameless because the deal is a personal matter. The corporate didn’t reply to South China Morning Submit’s requests for remark.
The explanation for layoffs is claimed to be market downturn, although holding in thoughts that China’s market of EDA instruments is dominated by international firms, notably Ansys, Cadence, Siemens EDA (former Mentor Graphics), and Synopsys, the competitors is fierce and American firms management about 70% of China’s EDA market.
X-Epic was established by Wang Libin, a former engineer from Cadence Design Techniques. The corporate grew rapidly, using about 400 individuals throughout varied cities in China, together with Nanjing, Beijing, Shanghai, Chengdu, and Shenzhen, as of March 2023. Buyers in X-Epic embrace HongShan (previously Sequoia Capital China), Matrix Companions China, and China Info and Communication Expertise Group. In Could, the Nanjing authorities listed X-Epic as a popular revolutionary startup, highlighting its potential within the native EDA sector. As of March 2023, it had reportedly raised $121.7 million in funding. For Chinese language EDA corporations it’s not uncommon to get funds from authorities.
The reliance on international EDA software program stays a big weak point in China’s semiconductor business, alongside challenges in wafer fab instruments, reminiscent of lithography machines.
Main Chinese language EDA corporations, together with X-Epic and Empyrean Expertise, are striving to develop EDA instruments that can be utilized to design chips to be made on superior nodes, reminiscent of 14nm/16nm and beneath. U.S. sanctions prohibit to import superior EDA software program to Chinese language entities with out an export license that’s reviewed with a presumption of denial, so X-Epic and Empyrean must give you acceptable instruments quite before later as China strives to semiconductor self-sufficiency, which is why Empyrean reportedly getting large money influxes.
Regardless of all odds, the worth of China’s EDA market is projected to develop. It’s anticipated to succeed in ¥18.5 billion ($2.55 billion) subsequent 12 months, up from ¥9.3 billion ($1.281 billion) in 2020, which signifies a robust potential for future growth regardless of present setbacks, in line with SCMP. But, for now, Chinese language EDA firms have to chop their headcount and get cash from authorities to stay afloat.
