US Lifts Chip Design Software Restrictions in China

President Donald Trump’s administration has lifted export restrictions it imposed recently for chip design software sales in China, as Washington and Beijing move forward with a framework for a trade deal.

Synopsys (SNPS) and Germany’s Siemens AG said they had been informed by the U.S. Commerce Department’s Bureau of Industry and Security that the curbs imposed in May had been removed. Reports noted that a third semiconductor design software provider, Cadence Design Systems (CDNS), made a similar statement.

The news sent shares of the U.S. companies surging in premarket trading.  Shares of both Cadence and Synopsys are up about 6%. 

Siemens said in a statement to Investopedia that it has “restored full access to software and technology” and resumed sales to China, while Synopsys said the export restrictions placed on it in May “have now been rescinded, effective immediately” and that it is “working to restore access to the recently restricted products in China.”

Cadence, according to Bloomberg and CNBC, is in the process of resuming its services in the country. Cadence and the Commerce Department didn’t immediately respond to Investopedia requests for comment.

Shares of Cadence entered Thursday up 4% so far this year while those of Synopsys are 8% higher.