Since October 2022, the United States, citing "national security" reasons, has begun to significantly tighten export controls on high-end chips and key equipment to China, focusing on three major areas: artificial intelligence, high-performance computing, and advanced manufacturing. In May of this year, the U.S. Department of Commerce notified Synopsys, Siemens, and Cadence, requiring them to stop providing chip design software to Chinese customers.
However, on July 2nd local time, the U.S. Department of Commerce notified the world's three major chip design software suppliers - Synopsys, Cadence, and Siemens - that the previous regulation requiring their business in China to apply for government permission has now been revoked. It is evident that the United States' export restriction policy on China in the field of chip design software has undergone a significant shift.
1. Siemens
On July 3rd, Siemens issued a statement saying that the U.S. Department of Commerce has notified the company that it no longer needs to apply for government permission to conduct business in China. The company has restored full access to its software and technology for Chinese customers. Siemens EDA (formerly Mentor Graphics, acquired by Siemens in 2017 for $4.5 billion) is a strong competitor in vertical fields such as circuit simulation, PCB design, EMC modeling, and reliability analysis, and has a leading advantage in the design process of automotive chips and industrial-grade chips.
2. Synopsys
Synopsys said that on July 2nd, it received an official notice from the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce, stating that "export restrictions related to China have now been lifted and will take effect immediately." The company is working to restore the sale of previously restricted products in China and will continue to assess the specific impact of the export policy changes on its business and finances. Synopsys is the world's largest EDA software supplier, and its EDA suite is an essential part of the chip design process from scratch for chip companies.
3. Cadence
In a statement on July 3rd, Cadence said that BIS has revoked the export restrictions issued on May 23rd. The company is restoring access to its software and technology for affected customers in accordance with U.S. export laws. Cadence's software is widely used to design a variety of products, from top-tier processors to simple components.
EDA software is a key tool for integrated circuit (IC) design, often referred to as the "design engine" in chip manufacturing, used to assist in the design, simulation, and verification processes of integrated circuits. Although the scope and duration of this lifting of restrictions still need to be observed, it has undoubtedly opened up a "key bottleneck" for Chinese chip design companies. The resumption of exports by the three companies means that the EDA "technical bottleneck" is likely to be loosened in the short term, which is a real policy relaxation for Chinese companies that rely on these software to develop chips.
Although some of the restrictions have now been lifted, many industry insiders point out that it is still necessary to closely monitor the reversibility and stability of U.S. policies. This policy shift marks the first "relief window" in the high-tech field between China and the United States since the return of the Trump administration. However, China's semiconductor industry still needs to prepare for the "long-term battle", continue to strengthen independent innovation, and enhance the competitiveness of domestic EDA software.
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