The US government has imposed restrictions on the sale of chip design software to China. The Bureau of Industry and Security, the arm of the US Department of Commerce, has sent letters to several major electronic design automation (EDA) software providers instructing them to suspend shipments to Chinese customers.

According to the Financial Times, XIAOMI-W (01810.HK)  -1.150 (-2.120%)    Short selling $721.80M; Ratio 10.812%   is expected to be among the first companies affected as the XringO1, its first self-developed 3-nanometer process SoC launched last month, was manufactured by TSMC (TSM.US)      and relied on multiple licenses and tools from US EDA companies.

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It is understood that other Chinese companies, including LENOVO GROUP (00992.HK)  +0.030 (+0.330%)    Short selling $198.84M; Ratio 13.195%   , are also using US EDA tools to produce their own chip designs. Chinese tech giants such as BABA-W (09988.HK)  -1.700 (-1.437%)    Short selling $1.71B; Ratio 19.496%   and BIDU-SW (09888.HK)  -0.350 (-0.417%)    Short selling $529.89M; Ratio 27.909%   have self-developed chips as well, but the impact of the EDA ban on them remains unclear.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-06 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)