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The three largest developers of chip design software have said the US has removed recent restrictions on sales in China, as a trade deal between Washington and Beijing takes effect.
Siemens, Synopsys and Cadence, which between them account for the majority of China’s market for so-called electronic design automation software, said they had been notified by the US government that export restrictions introduced in May were no longer in place.
Siemens said in a statement on Thursday that it had “restored full access to software and technology” under the controls and resumed “sales and support to Chinese customers”.
US-based Synopsys and Cadence said the measures had been “rescinded”.
“We are in the process of restoring access to our software and technology to affected customers in compliance with US export laws,” Cadence told the Financial Times. Synopsys also said in a statement it was “working to restore access”.
The announcements come a week after the US and China signed a trade deal that reduced tariffs from levels as high as 145 per cent in April.
The limitations on software used to design semiconductors were put in place by Washington as part of a package of restrictions that also affected exports of jet engines and ethane.
They were introduced after China clamped down on shipments of rare earths, a crucial manufacturing ingredient in electronics and defence equipment, as part of its retaliation against US tariffs.
The Financial Times previously reported that the White House was looking at easing chip restrictions if Beijing sped up rare-earth exports, ahead of talks in London that culminated in the deal being signed last week.
China last Friday said the two sides had “further confirmed” the details of the London talks.
Siemens EDA, Synopsys and Cadence produce almost all of the world’s electronic design automation software, used by designers and manufacturers to develop and test blueprints for new generations of semiconductors.
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The three companies account for close to 80 per cent of China’s EDA market, according to Shanghai-based consultancy ICWise Research, despite Chinese efforts to produce homegrown cutting-edge chips.
While the EDA sector accounts for just 1.6 per cent of the global $600bn semiconductor industry, it serves as a critical bottleneck in the supply chain. The US has for years placed limitations on exports of chips and chipmaking equipment on national security concerns.
The FT reported last month that China’s antitrust regulator had delayed approval of a $35bn merger between Synopsys and engineering software developer Ansys, after Washington’s move to ban US chip design software sales to China.