U.S. lifts chip design software export curbs, boosting Synopsys and Cadence shares

Synopsys (SNPS) and Cadence Design Systems (CDNS) saw premarket gains after the U.S. lifted export restrictions on chip design software to China, easing trade tensions. Both firms, along with Siemens, restored access to their EDA tools for Chinese clients.

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Synopsys rose 5.9%, Cadence gained 5.4%, and Siemens added 1.3% in Frankfurt. The trio controls over 70% of China’s EDA market, vital for semiconductor design in phones, cars, and computers.

The U.S. also dropped an ethane export license rule for China, rolling back some Trump-era trade measures triggered by China’s rare earth export halt in April.