The Trump administration has introduced new restrictions targeting exports of semiconductor design software to China, stepping up efforts to curtail Beijing’s capability to develop and implement advanced artificial intelligence technologies.
Siemens EDA, Cadence Design Systems, and Synopsys confirmed they received notifications from the U.S. Commerce Department’s Bureau of Industry and Security (BIS), requiring licenses for the export, re-export, or domestic transfer within China of electronic design automation (EDA) software. EDA software is pivotal in semiconductor production, integral for tasks ranging from initial chip design verification to performance testing and quality management. Industries reliant upon EDA include semiconductor foundries, network hardware developers, the automotive sector, and various chip manufacturing companies.
Responding to the notice, Siemens EDA, part of German technology giant Siemens, stated that while the company has supported customers in China for over 150 years, it remains committed to working within global regulatory frameworks to reduce impacts from new restrictions. Similarly, Synopsys disclosed that the policy directive led it to withdraw its financial forecasts for the third quarter and full-year 2025. Cadence Design Systems likewise acknowledged receipt of the BIS notice, affirming that the software it offers must now comply with the new license requirement.
These tightened controls reflect growing U.S. strategy to limit China’s access to groundbreaking AI hardware and software. This move comes amid escalating competition between both nations for dominance in the rapidly evolving artificial intelligence field. However, such export restrictions are starting to cause significant financial repercussions for U.S.-based chipmaking firms that hold considerable market shares in China.
Nvidia, a major provider of AI chips, has estimated multibillion-dollar revenue losses following similar constraints placed on exports of its leading-edge H20 and Hopper AI chips to customers in China. As a workaround to these regulations, Nvidia and competitor AMD are reportedly preparing scaled-down versions of their AI chips to comply with U.S. export controls, potentially mitigating ongoing and future business impacts.
The Commerce Department has not provided immediate comment.
