Overview

• President Donald Trump’s administration ordered U.S. Electronic Design Automation firms to halt software sales to Chinese entities this week.
• The Commerce Department’s Bureau of Industry and Security notified Cadence Design Systems, Synopsys and Siemens EDA of the new export restrictions.
• Nvidia CEO Jensen Huang criticized the controls as counterproductive and said they have accelerated China’s domestic chip development.
• Shares of Cadence and Synopsys dropped by more than 10 percent after the report on the directive was published.
• Analysts warn the latest measure intensifies a tech trade conflict that has already disrupted global semiconductor supply chains and prompted Chinese retaliation.