Cadence Design Systems, Synopsys Shares Rise As US Lifts Chip Design Restrictions On China

Shares of chip design firms Cadence Design Systems Inc CDNS and Synopsys Inc SNPS are rising Thursday after the U.S. Department of Commerce rescinded China export restrictions.

What Happened: Cadence Design and Synopsys announced in separate statements that the Bureau of Industry and Security of the Commerce Department informed the companies that export restrictions related to China that were put in place in May have been rescinded, effective immediately.

The Department of Commerce informed Cadence and Synopsys in late May that licenses would be required for exports of electronic design automation software and technology to China. The move was a part of the Trump Administration’s efforts to restrict China from accessing advanced chips and came after the government put restrictions on Nvidia and AMD citing national security risks related to supercomputers.

“Cadence is in the process of restoring access to EDA Software and Technology for its affected customers in accordance with these updated U.S. export regulations,” the company said on Thursday.

Synopsys also announced in a statement that it was working to restore access to the restricted products. The company noted that it’s continuing to assess the impact of China export restrictions on its financial results.

Siemens, which is based in Germany but has U.S. subsidiaries, also announced that it was informed of the lifting of restrictions. Cadence Design, Synopsys and Siemens are three of the biggest players in the semiconductor design software space.

Price Action: At the time of publication, Cadence Design shares were up 4.1% at $323.69 and Synopsys shares were up 3.6% at $541.73, according to Benzinga Pro.

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