The Commerce Department told Cadence Design Systems, Siemens EDA, and Synopsys they can once again flog their electronic design automation (EDA) tools to Chinese customers without jumping through licensing hoops. That means Chinese chipmakers, including those designing processors on par with global players, can go back to using the best-in-class design gear from the US trio.
Synopsys confirmed the backflip, stating: "On July 2, Synopsys received a letter from the Bureau of Industry and Security of the U.S. Department of Commerce informing Synopsys that the export restrictions related to China, pursuant to a letter received on May 29, 2025, have now been rescinded, effective immediately. Synopsys is working to restore access to the recently restricted products in China. Synopsys is continuing to assess the impact of export restrictions related to China on its business, operating results and financials."
The about-face comes just weeks after the US slapped curbs on EDA tools in May, supposedly in response to China's clampdown on rare earth exports crucial to military and industrial tech. Alongside chip software, the US deal includes ethane shipments and aircraft engines, assuming Beijing delivers on streamlining permits for those minerals.
It’s a symbolic win for China, which got the US to treat national security-linked export controls like bargaining chips in trade talks, something usually off the table. When the initial restrictions hit, the design tool industry was left in the dark with vague rules and no guidance, freezing nearly all activity in China. That’s a sharp contrast to the usual red tape-laden rollout from Washington.
DoC economic advisor Kevin Hassett had hinted the restrictions might not be permanent, suggesting some wiggle room on semiconductor tools. Now, it appears the US has caved, at least partially.
The murk remains, though. It’s unclear whether all EDA tools are now off the naughty list, including those used for 14nm or 16nm DRAM and logic chip design, or just the ones not covered by other rules.
Former State Department China adviser and analyst Ryan Fedasiuk pointed out that EDA software was one of the last remaining foreign techs available to Huawei.
