TECH NEWS – Interestingly, despite the ongoing trade war between the United States and China, the U.S. government has made concessions on one issue.

According to a press release from electronic design automation (EDA) products provider Synopsys, the US government has lifted licensing requirements for semiconductor design software for Chinese companies. These restrictions were introduced in May as part of what many saw as pressure on China during trade negotiations. However, after Trump and Commerce Secretary Wilbur Ross announced that they had finalized a trade deal with China, Ross’s department withdrew the restrictions imposed in May. These restrictions were imposed on EDA companies on May 29, apparently as part of the Trump administration’s trade negotiations with China. While most of the world’s advanced semiconductors are manufactured in Taiwan, U.S. intellectual property rights on chip-making machinery and design software enable the U.S. government to restrict sales to countries that act against U.S. national security interests.

EDA devices are the backbone of the global semiconductor supply chain, enabling companies such as Nvidia, Intel, and AMD to design their products. Media reports in May confirmed that the Commerce Department had sent letters to EDA companies, including Cadence, Synopsys, and Siemens, demanding that they obtain permission to export products to China. News of the restrictions came on the same day Synopsys reported its quarterly results for the second fiscal quarter. The company’s CEO denied receiving such a letter, and its shares recovered some of their losses after the company maintained its full-year forecast. However, the company later suspended its forecast after disclosing to the SEC that it is evaluating the potential impact of the BIS letter on its business, results of operations, and financial condition.

Although Synopsys’s CEO denied receiving the letter when the latest sanctions news broke, the company confirmed that the Commerce Department had decided to lift the May EDA restrictions on China. In a press release posted on its website, Synopsys shared that it received a letter from the U.S. Department of Commerce’s Bureau of Industry and Security. The letter informed Synopsys that the export restrictions on China were lifted effective immediately. The letter was dated May 29, 2025. Synopsys stated that it is working to restore access to products recently restricted in China and evaluating the impact of China-related export restrictions on its business, results of operations, and financial condition.

Like Synopsys, EDA provider Cadence confirmed the restrictions in May. In an SEC filing, Cadence revealed that a license is now required to export, re-export, or transfer electronic design automation software and technology, under certain classifications, to Chinese entities within the country. Cadence added that it is assessing the impact on its business and financial results. However, unlike Synopsys, Cadence has not confirmed the withdrawal of the rules.

Source: WCCFTech