US Lifts Chip Design Software Export Restrictions to China

The U.S. government has lifted restrictions on the export of chip design software to China. This was announced by companies Synopsys and Cadence, as reported by CNBC.

“Synopsys is working to restore access to products in China that were recently subject to restrictions,” stated the California-based software manufacturer.

Cadence confirmed that the U.S. Bureau of Industry and Security has removed the export limitations.

“We are in the process of regaining access to our software and technologies for affected clients in accordance with U.S. export regulations,” commented a representative of the company.

Siemens, another impacted player, has also been allowed to resume its operations in China.

Shares of Synopsys and Cadence saw increases of 6% and 7%, respectively, during overnight trading.

These three companies are recognized as key participants in the U.S. electronic design automation (EDA) market, which encompasses both software and hardware, as well as essential services for chip and semiconductor design.

In 2024, market shares of Synopsys, Cadence, and Siemens in the global EDA market were 31%, 30%, and 13%, respectively.

On June 27, China’s Ministry of Commerce confirmed a trade agreement with the U.S. aimed at allowing the export of rare earth metals and easing technological restrictions.

China will review and approve applications for the export of goods subject to control regulations. In return, Washington will lift several existing restrictions on Beijing.

As a reminder, in April, the U.S. government prohibited Nvidia from supplying H20 chips to China and several other nations.

In response, Nvidia planned to launch a new AI chipset for the Chinese market at a significantly lower price.