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3w ago

U.S. Rescinds Export Curbs on Chip Design Software and Ethane to China

The Commerce Department’s move follows Beijing’s pledge to fast-track rare earth mineral approvals under a broader tariff truce.

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 U.S. Department of Commerce lifted license requirements for exporting chip design software, ethane and jet engines to China effective July 2.
  • Synopsys, Cadence Design Systems and Siemens have begun restoring EDA tool access and updating systems to resume full service for Chinese customers.
  • The rollback stems from a London-negotiated deal tying U.S. concessions on chip tools to China’s pledge to speed rare earth mineral approvals.
  • Industry analysts say the six-week licensing requirement highlighted China’s reliance on Western EDA software and underscored critical supply-chain interdependencies.
  • A 90-day tariff truce remains in place through August, though existing duties on other goods have yet to be addressed.