The U.S. reportedly sets limits on the sale of semiconductor design software to China, requiring involved companies to apply for a license to export the software to China.
Foreign media cited two sources reporting the news. One of them said that electronic design automation software manufacturers such as Cadence Design Systems, Synopsys, and Siemens EDA have received notification letters from the U.S. Department of Commerce on the 23rd, asking them to stop providing their technology.
The report also stated that the U.S. Department of Commerce will review each license application case by case, meaning that the measures are not a complete ban on the export of related technology to China.
A spokesperson for the U.S. Department of Commerce declined to comment on the aforementioned letters but stated that the department is assessing exports of strategic significance to China. The spokesperson said, "In some cases, the Commerce Department has suspended existing export licenses or added additional licensing requirements during the review process."
Cadence Design Systems declined to comment. The CEO of Synopsys denied receiving any letter and stated that it had not received any communication from the U.S. Department of Commerce's Bureau of Industry and Security, responsible for enforcing export controls.
China's business accounts for 12% and 16% of the annual revenue of Cadence Design Systems and Synopsys, respectively. Although the scope of the policy adjustment is not yet clear, any actions that prevent software manufacturers from connecting with Chinese customers could potentially harm company profits and the Chinese chip designers who heavily rely on top U.S. software.