Shares of Synopsys and Cadence Design Systems surged after the US eased export restrictions on chip design software to China, alleviating concerns about access to a vital market. Initially imposed in late May, these restrictions had significantly impacted the industry, cutting off a market that contributes over 10% of revenue for major players and affecting financial forecasts. With the resumption of exports, companies are expected to lose only a month’s revenue this quarter, according to Mizuho analysts. This development could also expedite the long-awaited Chinese approval of Synopsys’ $35 billion acquisition of engineering software firm Ansys. Synopsys, which had previously withdrawn its forecast due to the restrictions, saw its shares rise by 4.9%, while Cadence increased by 5.1% and Ansys by over 4%. Siemens, another key player in the electronic design automation sector, experienced a 0.8% increase in Frankfurt.
Have US export curbs on chip design software to China been lifted?
