The U.S. eased chip software curbs, allowing Synopsys and Cadence to resume business in China

According to Reuters, Synopsys confirmed it will resume exports of its semiconductor design software to Chinese customers after the U.S. government lifted recent export restrictions. The decision most likely also applies to Cadence and Siemens EDA—key players in the electronic design automation (EDA) space—who collectively dominate over 70% of China’s EDA market.

The restrictions had briefly cut off Chinese chip designers from advanced U.S. software tools, raising concerns over global semiconductor supply chains. With the U.S. Commerce Department now easing those curbs, Synopsys expects to restore access for Chinese clients within three business days.

The market responded strongly:

• Synopsys (SNPS) surged to $546.97, up $23.54 (+4.50%) in overnight trading
• Cadence Design Systems (CDNS) jumped to $331.00, up $19.94 (+6.41%) overnight

This policy shift is seen as part of broader trade recalibrations between the U.S. and China. While the easing relieves immediate pressure on China’s chip design industry, analysts note the situation remains fluid and could shift again based on geopolitical developments.

Bottom line: Synopsys and Cadence are set to resume business in China, restoring access to critical chip design software. The move has fueled sharp gains in both stocks as markets welcome the de-escalation in tech trade restrictions.