Cadence and Synopsys Stocks Rise After U.S. Lifts China Export Restrictions

Shares of Cadence Design Systems and Synopsys saw a significant rise following the news that the U.S. had lifted export restrictions on electronic design automation (EDA) tools to China. The U.S. Department of Commerce’s Bureau of Industry and Security informed both companies, as well as Siemens, that they can now resume supplying their EDA tools to Chinese customers. The restrictions had been imposed in May 2025. This regulatory change is seen as a significant boost for these companies, as analysts noted it removed a major obstacle to their operations in China. Cadence’s stock surged by 5.1%, breaking through a key buy point, while Synopsys saw a 4.9% increase. These developments also paved the way for Synopsys to complete its $35 billion acquisition of Ansys, a deal that had been announced earlier in 2024. The rollback of the curbs was part of a broader trade agreement between the U.S. and China, which also involved China speeding up export approvals for rare-earth minerals. The U.S. decision is expected to have minimal revenue impact in the current quarter but is a positive signal for both companies in the long term.