Cadence Design says engaging with BIS for clarification on EDA export license

In a regulatory filing, Cadence Design (CDNS) Systems stated: “On May 23, 2025, the Bureau of Industry and Security, U.S. Department of Commerce, informed Cadence Design Systems that a license is now required for the export, re-export or in-country transfer of electronic design automation software and technology classified under Export Control Classification Numbers 3D991 and 3E991 on the Commerce Control List, when a party to the transaction is located in China or is a Chinese ‘military end user’ wherever located. The letter stated that BIS has determined that these shipments pose an unacceptable risk of use in or diversion to a ‘military end use’ in China or for a Chinese ‘military end user.’ Robust customer design activity continues to drive strong global business momentum. The new requirements are complex, and we are engaging with BIS to obtain further clarification, as we assess the impact on our business and financial results.”