China’s technology sector is rapidly integrating artificial intelligence into semiconductor design processes as part of a strategic effort to reduce reliance on foreign technology and climb the global value chain by 2030.
- Empyrean Technology uses AI agents to reduce chip design time by 75%.
- MIIT aims to elevate China’s semiconductor software capabilities by 2030.
- Global EDA leaders also deploy AI but China targets domestic alternatives.
What happened
China is intensifying efforts to integrate AI into semiconductor design tools as part of a national push for technology self-sufficiency. The country's leading EDA tool manufacturer, Empyrean Technology, has implemented AI-optimized algorithms and autonomous agents in its chip design software to accelerate the design process. According to Empyrean's chairman Liu Weiping, an AI agent reduced the time required for a complex circuit layout from four weeks to just one week.
This advancement was highlighted at the 2026 International Integrated Circuit Innovation Expo in Shenzhen, where Liu described a shift from manual tool operation to human-managed autonomous AI agents, signaling a fundamental change in how chip design and the EDA software industry will operate. Empyrean is also developing an interoperable agentic EDA platform to integrate its AI tools with those of partners, anchoring its future growth strategy.
Why it matters
The global semiconductor design software market is currently dominated by Western companies such as Synopsys, Cadence, and Siemens, posing a strategic vulnerability for China amid geopolitical tensions. By advancing domestic AI-assisted chip design capabilities, China aims to reduce this dependency and enhance control over critical technology infrastructure.
Additionally, the Ministry of Industry and Information Technology has unveiled an action plan emphasizing the integration of AI with industrial software like EDA, targeting a significant technological leap by 2030. Leveraging AI agents represents an opportunity to reshape not only chip design but the entire semiconductor production ecosystem, potentially allowing China to challenge established global leaders.
What to watch next
Monitor the development and deployment of Empyrean’s agentic EDA platform and the engagement with partner AI tools, which could set new standards for semiconductor design workflows in China. The evolution of licensing and business models from traditional software to token-based consumption driven by AI agents will also be key to track.
Internationally, global EDA companies, including US-based Cadence, continue to enhance their AI capabilities with autonomous agents, creating a competitive landscape that Beijing seeks to disrupt. The progress of China’s AI-driven semiconductor design ambitions and their impact on global supply chains and technology sovereignty will be significant in the coming years.