In a significant move to limit China’s access to advanced semiconductor technologies, the U.S. Department of Commerce has implemented new export controls targeting electronic design automation (EDA) software. This decision affects major EDA providers, including Siemens EDA, Cadence Design Systems, and Synopsys, all of which have confirmed receipt of notices from the Commerce Department’s Bureau of Industry and Security (BIS) regarding these restrictions.
EDA tools are essential for the design, validation, and manufacturing of semiconductors. They are utilized across various industries, including chip manufacturing, networking hardware, and automotive sectors, to ensure performance and quality standards.
Siemens EDA, a division of the German conglomerate Siemens, acknowledged the BIS notification concerning new export controls on EDA software to China and Chinese military end-users. The company emphasized its longstanding relationship with Chinese customers and expressed its commitment to working globally to mitigate the impact of these restrictions while adhering to applicable national export control regulations.
Similarly, U.S.-based Synopsys reported receiving a comparable letter from the BIS. In response, Synopsys suspended its financial forecasts for the third quarter and the full year of 2025, reflecting the uncertainty introduced by the new export controls.
Cadence Design Systems also confirmed receipt of a BIS notice indicating that a license is now required for the export, re-export, or in-country transfer of EDA software to customers in China.
These export controls are part of a broader U.S. strategy to curb China’s advancements in artificial intelligence (AI) and semiconductor technologies. The restrictions are expected to have significant implications for the U.S. chip industry, which has historically maintained a substantial market share in China.
For instance, Nvidia has reported substantial financial losses due to limitations on sales of its H20 and Hopper AI chips to Chinese customers. In response, Nvidia and its competitor AMD are reportedly developing lower-powered versions of their AI chips to continue serving the Chinese market within the constraints of the new regulations.
The U.S. Commerce Department has yet to provide further comments on these developments.
