US Lifts Semiconductor Software Ban on China Amid Trade Agreement

Washington, D.C. — The United States has removed export restrictions on semiconductor design software to China, signaling a de-escalation in trade tensions between the two nations. The decision is part of a broader trade agreement aimed at reducing hostilities and fostering cooperation in key technological sectors.

The US Commerce Department initially imposed restrictions in May 2025 on electronic design automation (EDA) tools, which are critical for creating semiconductors used in technologies such as smartphones, computers, and automobiles. These measures were introduced in response to China’s decision to limit rare earth exports to the US.

Cadence, Synopsys, and Siemens, key players in the EDA industry, were informed of the rescinded export controls. Synopsys announced that a prior communication detailing the restrictions had been withdrawn. Cadence and Siemens also confirmed they are resuming full access to their software and support services for Chinese customers.

Siemens stated, “Siemens was recently notified by the Bureau of Industry and Security, US Department of Commerce, that the export control restrictions on EDA software and technology to customers in China set forth in the May 23rd letter received by Siemens are no longer in place.” The company emphasized they have restored access subject to applicable export control laws.

The trade agreement formalized after talks in London in June 2025 will also see the US lifting restrictions on the export of ethane and jet engines, while China will approve the export of rare earth elements essential for high-tech manufacturing.

A report from Reuters indicated that, prior to the lifting of restrictions, Synopsys had directed its staff in China to cease sales and services due to compliance with the US export controls, affecting many Chinese chip design firms dependent on US software.

According to Xinhua News Agency, Synopsys, Cadence, and Siemens’ Mentor Graphics control over 70% of China’s EDA market. Chinese firms like Brite Semiconductor and VeriSilicon rely on their software for semiconductor development.

The lifting of these restrictions comes as the US continues efforts to limit China’s access to critical technology to prevent potential military advancements and artificial intelligence capabilities.