The United States has lifted export restrictions on chip design software (EDA tools) to China, causing shares of Synopsys and Cadence Design Systems to jump. This move, along with the withdrawal of a licensing requirement on ethane exports, signals a distinct warming of trade relations between the two countries.
Chip design software firms climb as U.S. lifts curbs on China exports
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TL;DR: Key points with love ❤️The United States has lifted export restrictions on chip design software (EDA tools) to China, causing shares of Synopsys and Cadence Design Systems to jump. This move, along with the withdrawal of a licensing requirement on ethane exports, signals a distinct warming of trade relations between the two countries.
Trending- 1 China suspended rare earth exports (April)
- 2 Trump administration imposed tit-for-tat trade restrictions
- 3 White House reached an agreement with China around expediting shipments of rare earth minerals to the US (last week)
- 4 US lifts export restrictions on chip design software and ethane exports to China (Thursday, July 3, 2025)
- Shares of Synopsys and Cadence Design Systems jumped in premarket trading
- Siemens gained in Frankfurt
- Resumption of access to critical chip design software for Chinese customers
- Distinct warming of trade relations between the US and China
- Potential for increased trade and technological exchange in certain sectors
What: The United States lifted export restrictions on chip design software (electronic design automation, EDA tools) and withdrew a licensing requirement on ethane exports to China.
When: The lifting of curbs and withdrawal of requirements occurred on Thursday (July 3, 2025).
Where: United States, China, affecting companies globally (e.g., Frankfurt for Siemens).
Why: This action signals a distinct warming of trade relations and a 'small ceasefire in the chips war' between the world's top two economies. It reverses some tit-for-tat trade restrictions initiated by the Trump administration.
How: The US Commerce Department moved to withdraw the licensing requirement, and affected companies (Synopsys, Cadence Design Systems, Siemens) announced they were resuming access to their EDA tools for Chinese customers.