Overview

• The US Commerce Department’s Bureau of Industry and Security directed Cadence, Synopsys and Siemens EDA to halt exports of electronic design automation software to China.
• These firms command about 80% of China’s electronic design automation market, supplying crucial tools for advanced AI chip design.
• Shares of Cadence and Synopsys plunged roughly 10% on May 28 following the announcement of the export suspension.
• China’s embassy accused the US of abusing export controls and vowed resolute countermeasures to defend its technology firms.
• Analysts caution the export blockade could unravel the fragile 90-day tariff truce and bolster domestic Chinese EDA providers.