Chip Design Deal

Chip Design Deal

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The U.S. government has lifted export restrictions on chip-design software to China, a move confirmed by leading semiconductor software providers Siemens, Synopsys, and Cadence. These firms, which dominate the global Electronic Design Automation (EDA) market, said they received formal notifications from the U.S. Department of Commerce reversing the licensing requirement imposed in May.

Siemens EDA, based in Oregon, confirmed it had “restored full access” to previously restricted tools and resumed sales and support to Chinese clients. Synopsys and Cadence echoed similar plans. The announcement follows months of tightened export controls that previously targeted high-end AI chips from Nvidia and AMD.

The reversal is seen as part of a broader easing of tech tensions between the U.S. and China, following signs of a developing trade truce and conditional cooperation on rare earths and advanced tech exchanges.

Why it matters

This policy shift marks a significant step in U.S.–China tech relations and restores critical tools to China’s semiconductor sector. With China accounting for 10% of Synopsys’ quarterly revenue, the change could reverse recent sales slowdowns. Markets reacted positively shares of Synopsys and Cadence both rose 3%, reflecting investor optimism on resumed access and global chip supply stability.

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