US Lifts Restrictions on Semiconductor Design Software Exports to China

The US government has removed restrictions that were placed on semiconductor design software exports to China earlier this year. This decision was announced by Synopsys, a major provider of Electronic Design Automation (EDA) tools, in a press release. The restrictions, which were imposed in May 2025, were widely seen as part of the Trump administration’s trade strategy with China. However, following the announcement of a trade deal between the US and China, the US Department of Commerce reversed these restrictions.

The move marks a significant shift in policy and is expected to have wide-reaching implications for the semiconductor industry.

EDA tools are vital for designing semiconductors and are used by companies like NVIDIA, Intel, and AMD to create their products. These tools are often based on US intellectual property, which allows the US government to regulate their sale to countries that are considered a national security threat. In May, reports emerged that the US government had ordered major EDA providers such as Cadence, Synopsys, and Siemens to secure a license before selling to Chinese firms. This decision sparked concerns in the industry, as it disrupted the global semiconductor supply chain.

For Synopsys, the news of the restrictions came on the same day it reported its fiscal second-quarter earnings. Despite initial denials from the company’s CEO regarding the receipt of a letter from the US Department of Commerce, Synopsys later confirmed the restrictions and announced that it would reassess the impact of the sanctions on its business. Now, with the restrictions lifted, the company is working to restore access to its products in China.

Cadence, another key player in the EDA market, had also faced similar export restrictions. While it has not yet confirmed whether the restrictions have been fully lifted, it has stated that it is assessing the impact on its business and financial results.

The reversal of these restrictions marks a notable shift in the US government’s approach to China and the semiconductor industry. It remains to be seen how this will affect the global semiconductor market in the long term, but it is clear that the geopolitical landscape continues to evolve rapidly, with major consequences for technology companies worldwide.