US Lifts Chip Design Software Restrictions on China, Siemens Confirms

German industrial giant Siemens AG has confirmed receiving official notification from the US government regarding the removal of sales restrictions on semiconductor design software to China. The company announced it has restored full access to its software and technology solutions for Chinese clients.

Background: The Trump administration had significantly tightened export controls, making it increasingly difficult for US firms to sell electronic design automation (EDA) tools to China. In a sweeping move, the Commerce Department's Bureau of Industry and Security (BIS) had instructed leading EDA providers – including Siemens AG, Synopsys Inc., and Cadence Design Systems Inc. – to suspend shipments to Chinese customers.

The restrictions had immediate market repercussions. Cadence shares plunged 10.7% to $288.61 in New York trading – the steepest single-day decline since March 2020. Similarly, Synopsys shares dropped 9.6% to $462.43, marking its worst performance since December.

China represents significant revenue streams for these firms: approximately 16% for Synopsys and 12% for Cadence. The initial restrictions effectively created an operational standstill, forcing Synopsys to temporarily suspend all sales and services in China while compliance teams evaluated the situation.

Industry sources indicate that while some limitations remain, the recent policy shift has allowed companies to resume certain operations. Synopsys reportedly recommenced providing select services in June, including non-critical hardware and intellectual property solutions for existing clients.

The Commerce Department confirmed it continues to review strategic exports to China, with some cases requiring additional licensing approvals. Neither Synopsys nor Cadence immediately responded to requests for comment regarding the updated policy.