Shares of leading chip design software firms Synopsys and Cadence Design Systems surged on Thursday following a significant policy shift by the United States government. Washington announced the lifting of export restrictions on advanced chip design software also known as Electronic Design Automation (EDA) tools to China, a move that eases longstanding uncertainty over access to a critical market.
Both Synopsys and Cadence, industry leaders in EDA software used in the design and testing of semiconductors, saw immediate gains in their stock prices. Germany’s Siemens, another key player in the chip design space through its EDA unit, also confirmed it would resume operations for Chinese customers.
The decision marks a notable reversal from earlier restrictions imposed as part of Washington’s broader efforts to curb China’s technological advancements in sensitive sectors, particularly in artificial intelligence and semiconductor manufacturing. The curbs, introduced in recent years, limited China’s access to tools necessary for producing advanced chips, which had a chilling effect on trade relations and market confidence.
Industry analysts hailed the policy shift as a pragmatic step that balances national security concerns with the economic interests of US companies. China represents one of the largest and fastest-growing markets for semiconductors and chip design software, and restrictions had placed considerable pressure on US firms hoping to maintain global competitiveness.
“The lifting of export curbs provides clarity and opens the door for renewed commercial engagement with Chinese chipmakers,” said John Pellerin, a semiconductor industry analyst. “This is a positive development for companies like Synopsys and Cadence, whose growth is tied closely to international demand.”
The announcement also drew a measured response from Chinese technology firms, many of which had begun developing indigenous alternatives amid fears of permanent restrictions. The renewed access to top-tier design tools could now slow down that localization push, at least in the short term.
As geopolitical tensions persist, the semiconductor industry remains a focal point of economic and strategic maneuvering. Still, the easing of export rules suggests a willingness from both sides to preserve certain aspects of technological collaboration especially where mutual economic benefit is evident.
