U.S. Reverses Chip Software Export Ban to China
The U.S. government has lifted export restrictions on advanced chip-design software previously imposed on China, according to announcements Thursday from major semiconductor software firms Synopsys and Cadence.
The reversal, made by the Bureau of Industry and Security (BIS) under the Department of Commerce, marks a notable shift in the Biden administration’s tech trade policy.
In a statement, California-based Synopsys confirmed that it is “working to restore access to the recently restricted products in China.” Rival firm Cadence also acknowledged the policy change, telling CNBC it is currently restoring software and technology access to affected Chinese clients “in compliance with U.S. export laws.”
The Department of Commerce has not issued an official comment on the matter.
Restrictions Quietly Lifted After May Crackdown
The original restrictions, issued on May 23, required software providers to obtain licenses before exporting semiconductor-related goods—such as design software and specialty chemicals—to Chinese firms. The policy reportedly impacted not only Synopsys and Cadence but also Siemens EDA, the U.S. subsidiary of Germany’s Siemens. Siemens has also been notified it can resume operations in China, according to multiple sources.
Market Reaction and Industry Impact
Shares of Synopsys and Cadence surged in overnight trading following the news, gaining more than 6% and 7%, respectively, on the Robinhood platform. The stock boost reflects investor optimism about renewed access to one of the world’s largest chip markets.
The three companies are dominant players in the electronic design automation (EDA) sector, which provides the critical software, hardware, and support services needed for advanced chip manufacturing. The U.S. retains a commanding lead in this segment, making its policy decisions highly influential in global semiconductor development.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
