US Lifts Software Export Restrictions for Chip Design in China

The US government has lifted restrictions on the export of chip design software to China, according to reports from Synopsys and Cadence, as noted by CNBC.

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

Rival firm Cadence confirmed that the US Bureau of Industry and Security has lifted the export constraints.

“We are in the process of restoring access to our software and technologies for affected clients in accordance with US export laws,” a company representative stated.

Another affected player, Siemens, has also been permitted to resume business in China.

Shares of Synopsys and Cadence rose by 6% and 7% respectively during overnight trading.

The three mentioned companies are considered part of the dominant US market for electronic design automation (EDA), which includes software, hardware, and essential chip and semiconductor design services.

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

On June 27, China’s Ministry of Commerce confirmed a trade agreement with the US aimed at facilitating 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 restrictive measures against Beijing.

Back in April, the US government banned Nvidia from supplying H20 chips to China and several other countries.

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