U.S. Lifts Restrictions On Microchip Software Exports To China

The U.S. government has lifted export restrictions on chip-design software to China, sending stocks of companies such as Siemens (SIEGY), Synopsys (SNPS), and Cadence Design Systems (CDNS) higher.

The companies have said publicly that they each received letters from the U.S. Department of Commerce informing them that the controls on Chinese exports have been lifted.

While Siemens is based in Germany, its chip design software subsidiary, called Siemens EDA, is based in the U.S. State of Oregon.

Cadence Design said that it will immediately restore full access to the recently restricted software and technology, and restart sales and support to its Chinese customers.

The U.S. government had informed the chip design software companies in May that they were required to obtain licenses before exporting software and other technology for semiconductors to China.

The reversal on those exports does not apply to other Chinese export controls that have been put in place for semiconductors and microchips from companies such as Nvidia (NVDA).

Synopsys and Cadence Design are considered part of the electronic design automation (EDA) market, which encompasses software, hardware, and essential services for designing chips and semiconductors.

Synopsys has said previously that customers in China make up about 10% of its $1.6 billion U.S. in quarterly revenue.

The lifting of the China export controls comes after Chinese authorities signaled that they are making progress on a trade agreement with the U.S. and agreed to resume some rare earth mineral and metal exports to America.

The stock of Cadence Design, a leading U.S. microchip software company, is up 6% on news that the export controls to China have been removed.

So far in 2025, CDNS stock has gained a total of 4% to trade at $310.95 U.S. per share.