US lifts export curbs on chip design software to China, benefiting Synopsys, Cadence, and Ansys

Shares of Synopsys and Cadence Design Systems surged after the U.S. lifted export curbs on chip design software to China, easing market uncertainty. Mizuho analysts predict the companies will only lose one month of revenue in the current quarter. The move may also pave the way for Chinese approval of Synopsys’s $35 billion Ansys buyout.

Synopsys, which previously withdrew its forecast due to the export restrictions, saw a 5.5% increase in shares. Cadence hit a record high of $330.09, with a 6.1% gain, while Ansys rose about 3.5%. Germany’s Siemens also saw a 1.5% increase in Frankfurt.

The lifting of export curbs signifies a slight warming of relations in the chip sector. However, concerns remain about high-end chip exports to China, with the U.S. continuing to monitor technological advancements and potential intellectual property issues.

U.S. administrations have aimed to limit China’s access to American chip technology, citing national security concerns. The export restrictions have led to increased domestic chip design activity in China, fueled by state subsidies and fears of potential retaliation.

The Synopsys-Ansys deal, pending Chinese approval, has a July 15 deadline for closure. Analysts warn of potential delays or blockages by Beijing in response to the export curbs. The deal has received clearance in all jurisdictions except China, with the option to extend the closure deadline until January next year.

Read more at Yahoo Finance: Chip design software firms climb as US lifts curbs on China exports