US lifts chip software curbs on China, EDA firms begin restoring access

World's three largest electronic design automation (EDA) firms - Siemens, Synopsys, and Cadence - confirm rollback of US chip curbs on China

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The United States on Thursday rolled back recently imposed export restrictions on advanced chip design software to China, a sign of cooling tensions between the two global economic giants. Major software firms Siemens, Synopsys, and Cadence Design Systems confirmed the development after receiving the heads-up from the US Commerce Department.

 

The US government informed the world’s three largest electronic design automation (EDA) software developers that sales of their products to China would no longer require special approval.

 

California-based Synopsys confirmed the announcement on its website, stating the company had received a letter from the Bureau of Industry and Security of the US Department of Commerce that export restrictions in relation to China "have now been rescinded, effective immediately".  "Synopsys is working to restore access to the recently restricted products in China. Synopsys is continuing to assess the impact of export restrictions related to China on its business, operating results and financials," the company added.

 

State broadcaster China Central Television (CCTV) reported that Siemens also received a formal notification lifting the curbs.

 

Cadence, also headquartered in California, confirmed with the South China Morning Post in an email that the restriction imposed in May had been rescinded. The trio commands more than 80 per cent of China’s EDA market, the report added.

 

Meanwhile, All three EDA firms have begun restoring access to affected Chinese clients, with Siemens having already resumed full services, according to CCTV.

 

Background: Chip software curbs and rare earth standoff

The now-lifted export restrictions, introduced in late May, had blocked the sale of critical EDA tools used in semiconductor design. These tools are essential for chips powering consumer electronics, telecom, and defence systems.

 

The curbs were part of a tit-for-tat response to Beijing's tightening of export licences on seven rare earth minerals in April. China controls nearly 90 per cent of global rare earths processing, giving it substantial leverage in the high-tech supply chain.

 

While Washington and Beijing had announced a 90-day trade truce following talks in Geneva, no policy changes had been disclosed until this week, keeping firms in a state of limbo.

 

Trade breakthrough: Rare earths for tech easing

According to CNN, the rollback comes after a follow-up meeting in London, where both sides reached a narrow trade agreement. Under the deal, China agreed to resume rare earth exports to the US under existing licensing channels, while the US agreed to ease curbs on EDA software, chemical ethane, and certain jet engine technologies.

 

While the rollback relieves immediate supply chain constraints, US tariffs on Chinese goods remain in place. Furthermore, the development does not imply any broader changes to the Trump administration's stance on restricting China’s access to technologies with potential military or AI applications.

 

Synopsys said it continues to “assess the impact of export restrictions related to China" amid uncertainty.