The USA lifted restrictions on software exports for chips to China

The U.S. government has lifted restrictions on the export of software for chip design to China. This was reported by companies Synopsys and Cadence, according to CNBC.

"Synopsys is working on restoring access to products in China that have recently been restricted," said the statement from the California software manufacturer.

The competing firm Cadence confirmed that the U.S. Bureau of Industry and Security has canceled the export guidelines.

"We are in the process of restoring access to our software and technologies for affected clients in accordance with the export laws of the United States," said a company representative.

Another affected player — Siemens — has been allowed to resume business in China.

Shares of Synopsys and Cadence rose by 6% and 7% respectively during overnight trading.

The three companies mentioned are considered part of the dominant market in the USA for electronic design automation (EDA), which includes software and hardware, core services for chip design, and semiconductor devices.

In 2024, the market share of Synopsys, Cadence, and Siemens in the global EDA market was 31%, 30%, and 13%, respectively.

On June 27, the Ministry of Commerce of China confirmed a trade agreement with the United States aimed at resolving the export of rare earth metals and easing technological restrictions.

China will consider and approve applications for the export of goods that are subject to control rules. In turn, Washington will lift a number of existing restrictive measures against Beijing.

Recall that in April, the US government banned Nvidia from supplying H20 chips to China and several other countries.

In response to this move, Nvidia has planned a new AI chipset for the Chinese market at a significantly lower price.