SAN FRANCISCO (Diya TV) — The Trump administration has effectively barred several American technology companies from selling advanced semiconductor design software to China, escalating tensions in the ongoing tech trade battle between Washington and Beijing.
A spokesperson for the Commerce Department confirmed to CNN on Wednesday that it is “reviewing exports of strategic significance to China.” The department has already suspended certain export licenses or imposed new licensing requirements on companies while the review is underway.
According to a report first published by the Financial Times, the move specifically targets companies that develop electronic design automation (EDA) software, crucial tools used in the design of semiconductors. The FT reported that U.S. firms, including Cadence Design Systems, Synopsys, and Siemens EDA, have received letters from the Commerce Department directing them to halt exports of their software to Chinese entities.
The Commerce Department declined to comment on the existence or content of those letters but reiterated to CNN that it is scrutinizing exports with strategic implications.
EDA software is considered a critical choke point in global chip development, with U.S. firms dominating the sector. A former Commerce Department official told the FT that restricting access to this software had long been considered by national security officials but was previously deemed too aggressive a step.
The Financial Times report has yet to be independently confirmed by CNN. None of the three companies—Cadence, Synopsys, or Siemens EDA—responded to CNN’s request for comment. However, Synopsys CEO Sassine Ghazi addressed the matter during a call with analysts on Wednesday, stating that the company had not received any official communication from the Bureau of Industry and Security (BIS), the Commerce Department agency responsible for enforcing export controls.
“We are aware of the reporting and speculations,” Ghazi said, “but Synopsys has not received a notice from BIS.” He added that the company’s full-year revenue forecast already takes into account an anticipated year-over-year decline in business from China.
China accounts for a significant share of revenue for both Synopsys and Cadence—about 16% and 12%, respectively, according to company filings. Any official policy preventing sales to Chinese chip design customers could sharply impact both firms’ bottom lines.
Following the news, shares of Cadence closed down 10.7% on Wednesday, while Synopsys dropped 9.6%. After reaffirming its 2025 revenue forecast later in the day, Synopsys saw its stock rebound 3.5% in after-hours trading, with Cadence following suit.
The exact scope and duration of the export restrictions remain unclear. However, any broad-based enforcement would likely cause ripple effects throughout the semiconductor industry, especially in China, where chip design firms depend heavily on U.S.-developed EDA tools.
“This would be a significant move, both commercially and geopolitically,” said an industry analyst who requested anonymity to discuss regulatory matters. “If enforced broadly, it could delay chip design projects in China and prompt more aggressive efforts by Beijing to develop homegrown alternatives.”
The development comes as the U.S. continues to tighten export controls on critical technologies amid growing concerns about China’s military and economic ambitions. Previous efforts have targeted advanced chipmaking tools and artificial intelligence technologies, and this latest action signals a further narrowing of access to vital components in the global tech supply chain.
For now, the industry awaits more clarity from the Commerce Department and BIS, as companies navigate the uncertain terrain of geopolitical regulation and global market pressures.
