Photo: South China Morning Post
In a surprising move that hints at a thaw in U.S.–China trade tensions, the U.S. Department of Commerce has rescinded export restrictions placed earlier this year on chip-design software crucial to the global semiconductor industry. On Thursday, Siemens AG, Synopsys, and Cadence Design Systems confirmed they had received official notification from the U.S. government lifting the license requirements for software exports to China.
This reversal comes just weeks after Washington had informed these firms—dominant players in the Electronic Design Automation (EDA) market—that new licenses would be mandatory for any transfer of advanced semiconductor design technology to Chinese customers.
On May 23, 2025, the Biden administration had introduced stringent export controls on semiconductor design tools. These rules followed similar curbs implemented in 2023 targeting the export of high-performance AI chips from Nvidia and AMD to China.
The now-reversed restrictions affected:
Collectively, these firms represent the backbone of global chip design infrastructure, offering essential tools for developing everything from mobile processors to advanced AI chips.
Following the announcement:
These jumps were reflected in overnight trading on platforms like Robinhood, signaling investor optimism about the return of Chinese revenues and potential stabilization of tech-sector tensions.
For companies like Synopsys and Cadence, the Chinese market is substantial:
Now, with controls lifted, firms are expected to resume full support and sales to Chinese customers. Siemens EDA, which operates out of Oregon despite its German parent company, stated that it had already “restored full access” to previously restricted technologies.
The rollback aligns with broader signals of improving diplomatic and trade ties between the U.S. and China. Just last week, Beijing confirmed conditional agreements to resume limited exchanges in rare earth minerals and advanced tech components, suggesting a mutual willingness to de-escalate the tech war that has simmered since 2018.
According to TrendForce, the three lifted companies together control nearly 75% of the global EDA market — making the policy reversal not just symbolic but highly consequential for global semiconductor design pipelines.
Despite this relief, China’s long-term strategic goal remains domestic independence in chip design software. Beijing has ramped up investment in homegrown EDA tools and R&D programs, aiming to reduce reliance on Western technology.
“China is accelerating efforts to localize chip design infrastructure,” Synopsys said in a recent investor note. However, analysts agree that matching the technical sophistication of U.S. firms could take 5 to 10 years, given the decades of innovation led by Silicon Valley giants.
While the rollback of chip software export controls is an important diplomatic gesture, experts caution that deep strategic rivalry remains intact. The U.S. may have opted to ease specific restrictions to maintain influence over global tech flows and support its own firms’ revenue streams — not out of trust, but calculation.
As 2025 trade talks continue, this development may set the tone for a more pragmatic phase in U.S.–China relations — focused less on confrontation and more on managed competition.
For now, however, the EDA sector breathes a collective sigh of relief. The resumption of business with China offers not just immediate revenue recovery, but a temporary easing of geopolitical friction in one of the world’s most critical industries.