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14h ago

U.S. Lifts Chip Design Software Export Curbs to China for Rare Earth Pact

The Commerce Department rescinded May’s licensing rules for Synopsys, Cadence, Siemens AG under a reciprocal agreement in which China will accelerate rare earth shipments to the U.S.

Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022.
A man works at a chip maker in Binzhou city, in east China's Shandong province on January 15, 2025.
Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration
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Overview

  • The Bureau of Industry and Security notified Synopsys, Cadence and Siemens AG that export license requirements on chip design software to China have been lifted effective immediately.
  • The removal of May’s curbs enables the three electronic design automation providers, which control over 70% of China’s EDA market, to restore software access and technical support.
  • Commerce officials also sent letters to ethane producers revoking restrictive licensing requirements imposed in late May and June.
  • China agreed to expedite approvals and exports of rare earth minerals to the United States as part of the broader trade framework finalized in late June.
  • The agreement underscores the strategic competition over critical technologies and materials that underpin global semiconductor and defense supply chains.