Overview
- Letters from the Bureau of Industry and Security instructed Cadence, Synopsys and Siemens EDA to stop exporting software to Chinese customers without new Commerce approval.
- Synopsys directed its China staff to suspend services, halt sales and refuse new orders effective May 29 under the tightened export rules.
- Cadence, Synopsys and Siemens EDA together control about 80% of China’s EDA market, with China accounting for roughly 12% of Cadence’s and 16% of Synopsys’ fiscal 2024 revenue.
- Shares of Cadence and Synopsys plunged more than 9% on the announcement before partially recovering after Synopsys reaffirmed its full-year guidance.
- Market analysts say the restrictions will spur Chinese firms to accelerate domestic EDA development and may test the fragile 90-day US-China tariff truce.