Overview

• On May 23, BIS instructed Cadence, Synopsys and Siemens EDA to suspend exports of electronic design automation software to Chinese clients.
• The three firms account for roughly 80 percent of China’s EDA market, and shares of Cadence and Synopsys fell 10.7 percent and 9.6 percent, respectively.
• The directive is part of a broader US strategy to deny China critical design tools needed for advanced AI and military semiconductor development.
• China’s embassy in Washington condemned the move as an abuse of export controls and vowed to take resolute measures to protect its companies.
• Nvidia CEO Jensen Huang criticized the export curbs as counterproductive, saying they have prompted Chinese firms to accelerate their own AI chip programs.