U.S. Lifts China Software Restrictions for Synopsys, Cadence, Siemens

The U.S. Department of Commerce has notified three major global chip design software suppliers—Synopsys, Cadence Design Systems, and Siemens—that the previous requirement for their China operations to apply for government licenses has been revoked. This decision allows these companies to restore access to their software and technology to affected customers in China.

Synopsys, a California-based software maker, confirmed that it is working to restore access to the recently restricted products in China. Similarly, Cadence, another major player in the chip design software market, stated that it is in the process of restoring access to its software and technology to affected customers in compliance with U.S. export laws. Siemens EDA, an American subsidiary of Germany's Siemens, was also impacted by the ban but has now been told it can resume its China business.

The lifting of these restrictions is significant as it affects the U.S.-dominated electronic design automation (EDA) market, which includes software, hardware, and essential services for designing chips and semiconductor devices. Synopsys, Cadence, and Siemens EDA are key players in this market, holding substantial global market shares. This move is seen as a positive development in the ongoing trade negotiations between the U.S. and China, as it signals a willingness to ease tensions and resume some exchanges of advanced technology.

The decision to lift these restrictions comes amid broader trade discussions between the two countries. China had previously signaled progress on a trade truce with the U.S., confirming conditional agreements to resume some exchanges of rare earths and advanced technology. This latest development is expected to facilitate further cooperation and reduce barriers to trade in the semiconductor industry, which is crucial for both economies.