Shares of the world’s largest electronic design automation (EDA) companies, including Synopsys (SNPS), Cadence Design Systems (CDNS), and Siemens AG (SIEGY) (DE:SIE), jumped after the U.S. lifted software export curbs to China. As part of the U.S.-China trade deal, the Trump administration has lifted previously implemented curbs on chip-design software exports to China. According to Bloomberg, these relaxations are subject to China honoring its promise to accelerate the approval of critical mineral exports to the U.S.
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These restrictions were imposed on May 23, 2025, amid an escalating trade war with China. Beijing had restricted the export of rare-earth minerals to the U.S., and the White House responded with these software curbs. The U.S. is concerned about China’s use of advanced artificial intelligence (AI) models for strengthening its military operations, which could threaten national security.
EDA Firms Restore Chinese Market Access
All three companies confirmed that the U.S. Bureau of Industry and Security, under the Department of Commerce, has reversed the export restrictions, effective immediately. According to a report by Morgan Stanley (MS), these three companies together controlled almost 82% of China’s EDA market share in 2024. Notably, EDA tools are used to design semiconductors found in a wide range of hardware, including smartphones, automobiles, and electric vehicles (EVs).
Siemens said that it has restored full access to its software and technology for Chinese customers. The company confirmed that prior requirements for obtaining government licenses to do business in China have been lifted. Meanwhile, Cadence stated, “We are in the process of restoring access to our software and technology to affected customers in compliance with U.S. export laws.”
At the same time, Synopsys said that it is “working to restore access to the recently restricted products in China.” In May, Synopsys directed its staff in China to halt all sales and services in the country, following new restrictions on design exports to China. Synopsys also asked its offices to stop taking new orders until further clarity was sought on the matter.
Which Is the Better EDA Stock, According to Analysts?
We used the TipRanks Stock Comparison Tool to determine which EDA stock is currently favored by analysts. Investors should conduct thorough research before choosing to invest in any of these stocks.
Notably, both Synopsys and Cadence have earned Wall Street’s Strong Buy consensus rating, with SNPS stock offering higher upside potential among the two.
