U.S. Restriction on Semiconductor Software Sales to China
The U.S. government has directed software firms crucial for semiconductor design to cease sales to Chinese entities. The move, citing strategic export reviews related to China, impacts companies like Cadence and Synopsys. Shares in key firms temporarily fell amid uncertainty surrounding the imposed restrictions.
The Trump administration has enforced a ban on U.S. companies offering semiconductor design software from selling their services to Chinese firms, according to insiders as reported by the Financial Times.
This directive affects Electronic Design Automation (EDA) software creators like Cadence, Synopsys, and Siemens EDA, who received communication from the Commerce Department mandating cessation of supply.
Reactions from the market were swift, with Cadence's shares diving by 10.7% and Synopsys by 9.6%, before recovering partly. Despite the lack of official communication regarding the restriction, potential long-term impacts could be significant due to China's reliance on these technologies.
(With inputs from agencies.)
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