Synopsys, Cadence Design Shares Climb After U.S. Eases Chip-Software Curbs on China

By Connor Hart

Shares of Synopsys and Cadence Design Systems rose after the U.S. lifted some restrictions on exports of chip-design software to China.

Synopsys' stock climbed 6.1% to $554.88 in premarket trading, while Cadence Design's shares gained 5.9% to $329.44. Through Wednesday's close, shares are down 14% and 1.4%, respectively, in the past year.

Synopsys and Cadence Design, along with Germany's Siemens, said they had been told by the U.S. Department of Commerce's Bureau of Industry and Security that recent restrictions on China-bound exports had been lifted.

"On July 2, Synopsys received a letter from the Bureau of Industry and Security of the U.S. Department of Commerce informing Synopsys that the export restrictions related to China, pursuant to a letter received on May 29, 2025, have now been rescinded, effective immediately," the company said.

It added it is working to restore access to the recently restricted products in China, while also continuing to assess the impact of export restrictions related to China on its business, operating results and financials.

Cadence confirmed that BIS has rescinded the export restrictions in an emailed statement to The Wall Street Journal.

Shares of chip-design companies took a hit in late May after reports of the curbs emerged. Since then, however, tensions between the U.S. and China have eased, with the countries having reached a trade truce in mid-June after talks in Switzerland, including vows to ease non-tariff measures.

Write to Connor Hart at connor.hart@wsj.com