U.S. Lifts Chip Design Software Export Restrictions to China in Trade Deal Breakthrough

The U.S. has lifted restrictions on chip design software exports to China, marking a resolution to previous trade tensions over rare earths. Key companies like Synopsys and Cadence Design Systems have restored software access, signaling improved U.S.-China trade relations and impacting global supply chains.


Devdiscourse News Desk | Updated: 03-07-2025 08:36 IST | Created: 03-07-2025 08:36 IST
U.S. Lifts Chip Design Software Export Restrictions to China in Trade Deal Breakthrough
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The United States has lifted its restrictions on exporting chip design software to China, a move that signals a potential resolution in the ongoing trade dispute over rare earth materials between the two largest economies. The restrictions had been a sticking point since a May trade agreement.

Leading electronic design automation (EDA) software developers, including Synopsys and Cadence Design Systems, have announced plans to restore access to their products for Chinese customers. Synopsys reportedly expects to complete the necessary software updates within three business days, according to a letter to staff seen by Reuters.

The agreement follows a tit-for-tat escalation of trade restrictions, including China's suspension of exporting rare earths crucial to numerous sectors. The latest development could pave the way for smoother international trade and less disruption to supply chains critical to industries worldwide.

(With inputs from agencies.)

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