Shares in US chip design software makers Synopsys and Cadence Systems rose sharply after the US rescinded export restrictions that prevented them from selling to China, a market that accounts for a substantial portion of global sales for the sector’s largest players.
Synopsys, Cadence and Siemens, whose US-based electronic design automation (EDA) subsidiary is based in the US state of Oregon, said in statements issued on Thursday that they had received letters from the US Department of Commerce informing them that the controls had been removed.
The restrictions had been put into place in late May, meaning that the companies would lose only one month’s worth of China sales.
Access ‘restored’
Siemens said it had restored “full access” to its technology and resumed sales and support to Chinese customers, while Synopsys and Cadence said they were working to follow suit.
US authorities contacted chip design software firms on 23 May that effective immediately they were required to obtain licences to export their goods and services to China.
The move followed earlier restrictions on AI chips from the likes of Nvidia and AMD, which are still in place.
As a result of those controls Nvidia wrote off $5.5 billion (£4bn) related to sales of its H20 chip in China, which had been designed to comply with earlier trade rules for that market.
Synopsys said in May that the company saw slower sales in China in its quarter ended 30 April, and that the Chinese government has brought in policies to support domestic chip-design firms and technology.
Trade talks
It said China made up about 10 percent of its $1.6bn in global sales for the quarter.
US-based Synopsys, Cadence and Siemens EDA currently dominate the EDA market, with global share of 31 percent, 30 percent and 13 percent respectively in 2024, according to TrendForce figures.
The shift on EDA software came after China and the US said two weeks ago that they were making progress on trade talks.
In mid-June Chinese regulators delayed approval of Synopsys’ $35bn merger with competitor Ansys, a move that spurred fears of retaliation over the US export controls.