U.S. Tightens Grip on Semiconductor Software Exports to China

The U.S. government has tightened its control over exports of vital semiconductor design software by ordering major providers such as Cadence, Synopsys, and Siemens EDA to cease sales to China pending an export license. This significant move, sources revealed, is not a complete ban but a strategic approach involving case-by-case license evaluation.

Shares of Cadence and Synopsys saw a considerable drop following the news, although Synopsys clarified it had received no direct communication from the Commerce Department, and reiterated its revenue projections for 2025. The department is focusing on exports deemed of strategic importance to China, with some licenses undergoing increased scrutiny.

Although the full implications of this policy shift remain unclear, the impact is likely to be substantial for both software firms and their Chinese partners. The U.S. aims to fortify control over EDA tools, seen as critical choke points in high-end semiconductor design, a move debated since the Trump administration but previously considered overly confrontational.

(With inputs from agencies.)