U.S. Eases Chip Software Restrictions on China: A Major Step Toward Trade Harmony

The U.S. government has lifted its restrictions on chip-design software exports to China. Major players in the semiconductor industry, including Siemens, Synopsys, and Cadence, announced they received notices from the U.S. Department of Commerce about this change.

Siemens, while based in Germany, operates its chip-design subsidiary in Oregon. With these restrictions lifted, Siemens has fully restored access to its software and resumed sales to Chinese clients. Synopsys and Cadence are also in the process of re-establishing their client relationships in China.

In May, the U.S. had imposed new licensing requirements before these companies could export semiconductor technologies to China. This move followed previous limitations on advanced AI processors from companies like Nvidia and AMD. As a result of the recent news, shares of Synopsys and Cadence increased significantly—by over 6% and 7%, respectively.

The electronic design automation (EDA) market, dominated by these firms, involves software and hardware crucial for designing chips. According to Synopsys CEO Sassine Ghazi, the slowdown in China had an impact as Chinese customers accounted for about 10% of their $1.6 billion quarterly revenue.

Adding to the context, in recent years, China has been pressing to strengthen its domestic semiconductor industry. This includes supporting native chip-design companies to help reduce reliance on foreign technology. According to TrendForce, in 2024, Synopsys, Cadence, and Siemens EDA held substantial shares of the global EDA market—31%, 30%, and 13%, respectively.

This shift in U.S. policy also coincides with China’s recent signals of improving trade relations with the U.S., including tentative agreements related to rare earth materials and advanced technologies. Overall, these developments highlight a complex interplay of economic strategies, technological advancement, and international relations in the semiconductor industry.



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