The Trump administration has reversed restrictions on exporting chip design software to China, a move tied to efforts to ease US-China trade tensions following a deal reached in London.
American firms Cadence Design Systems Inc (NASDAQ:CDNS) and Synopsys Inc (NASDAQ:SNPS, ETR:SYP), along with Germany’s Siemens, confirmed the US Commerce Department had lifted controls introduced in May.
These restrictions were initially imposed in response to China’s curbs on rare earth exports, key materials for electronics and defence.
The software in question, known as Electronic Design Automation (EDA), is critical for developing semiconductors.
Analysts say the brief ban threatened China’s chipmaking capabilities, with the three companies reportedly controlling 70% of the Chinese EDA market.
The agreement includes reciprocal steps: China is expected to resume rare earth exports, while the US also lifted controls on ethane and jet engine exports.