The U.S. government has lifted export controls on chip-design software for China, according to announcements from three major players in the industry on Thursday.
Siemens AG, Synopsys, and Cadence each confirmed they received letters from the U.S. Department of Commerce informing them that previous export restrictions had been removed. Although Siemens is a German company, its chip design software division, Siemens EDA, operates out of Oregon, U.S.
Resumption of Sales and Support
Following the reversal, Siemens stated it has restored full access to its formerly restricted software and resumed sales and support to Chinese customers. Synopsys and Cadence indicated they are working to do the same. The U.S. Commerce Department did not immediately respond to requests for comment.
The restrictions, announced on May 23, had required companies to obtain licenses before exporting certain semiconductor software and technologies to China. This move followed earlier tighter controls on semiconductor hardware exports, limiting sales of advanced AI processors from Nvidia and AMD.
Market Impact and Company Responses
Shares of Synopsys and Cadence rose approximately 5% on Thursday in response to the news. The three companies dominate the electronic design automation (EDA) market—a sector critical to chip and semiconductor device design—which includes software, hardware, and services.
Synopsys CEO Sassine Ghazi noted during a May earnings call that the company experienced a slowdown in China during its fiscal second quarter, ending April 30. China-based customers accounted for roughly 10% of Synopsys’ $1.6 billion quarterly revenue. The company also highlighted China’s efforts to support domestic chip-design software firms and develop independent design capabilities.
According to market research firm TrendForce, in 2024, Synopsys held a 31% global market share, Cadence 30%, and Siemens EDA 13%.
This development comes shortly after China signaled progress in trade talks with the U.S., including conditional agreements to resume certain exchanges of rare earth materials and advanced technologies.
What The Author Thinks
This easing of chip-design software restrictions reflects a pragmatic approach by both the U.S. and China to stabilize critical technology supply chains amid geopolitical tensions. While concerns about technology transfer remain valid, complete decoupling could hamper innovation and economic growth on both sides. Balancing national security with collaborative progress will be key to sustaining the semiconductor industry’s vital global ecosystem.
Featured image credit: FMT
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