Chip design software firms climb as US lifts curbs on China exports
The restrictions, announced in late May, had essentially cut off the market that brings over 10% of revenue for the industry's major players, hitting forecasts and knocking down shares.
The export resumption means both the companies will only lose one month of revenue in the current quarter, Mizuho analysts said. The easing trade tensions may also clear the path for long-awaited Chinese approval of Synopsys's $35 billion buyout of engineering software firm Ansys, the analysts added.
Synopsys (SNPS.O), opens new tab, which had pulled its forecast in May due to the curbs, rose 5.5%. The company said on Wednesday it is still assessing the impact of export restrictions on China on its financials.
Cadence (CDNS.O), opens new tab and Ansys (ANSS.O), opens new tab gained 6.1% and 3.5%, respectively, while Germany's Siemens (SIEGn.DE), opens new tab, the third major player in the electronic design automation tools sector, was up 1.5% in Frankfurt.
"This marks a distinct warming of relations and a small ceasefire in the chips war," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Still, she cautioned that the move did not signal a broader shift on high-end chip exports from companies such as Nvidia. "The US will remain concerned about the technological prowess China has developed, and its use of US intellectual property."
Successive U.S. administrations have sought to restrict China's access to advanced American chip technology, citing concerns that it could be used to strengthen Beijing's military.
But the export curbs have also fueled a surge in domestic chip design activity in China, aided by generous state subsidies. They have also stoked fears of retaliation, with analysts warning that Beijing could delay or block approval of the Synopsys-Ansys deal in response.
The deal, which has received merger clearance in every jurisdiction other than China according to the companies, carries a deadline of July 15 for its closure with an option to extend until January next year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
Bank of Italy selects 4 systemic risk countries for lenders, including Russia
MILAN, July 4 (Reuters) - The Bank of Italy said on Friday it had selected the United States, Great Britain, Switzerland and Russia as countries outside the European Union that its banks have significant exposure to, under rules designed to govern systemic risks. The Bank of Italy used end-2024 data to measure banks' exposure to those countries in relation to their overall exposure. Top Italian lenders Intesa Sanpaolo ( opens new tab and UniCredit ( opens new tab are both present in Russia, the former serving only corporate clients while the latter owns a retail bank. UniCredit said in an update of the investor document relating to its takeover bid for Banco BPM ( opens new tab that its Russian unit had increased its holdings of local government bonds in the first quarter to 754 million euros ($888.06 million) from 574 million in December. ($1 = 0.8490 euros)
Finextra
an hour ago
- Finextra
YZi Labs joins Digital Asset funding round
YZi Labs today announced its investment in Digital Asset, a platform for enterprise-grade tools to build compliant solutions for regulated markets. 0 This investment builds on Digital Asset's $135M Series E fundraising round announced on June 24, which included participation from major financial institutions such as DRW, Tradeweb, DTCC, Citadel Securities, and Goldman Sachs. By joining this round, YZi Labs reinforces its commitment to advancing institutional adoption through infrastructure that meets the regulatory and operational needs of mature markets like the U.S. Digital Asset is the creator of the Canton Network, the only public L1 network built from the ground up with configurable on-chain privacy. As of June 2025, Canton has supported tokenized real-world assets with a total value locked (TVL) of trillions of dollars, including over $1.5 trillion in monthly tokenized U.S. Treasury repo activity. The network has seen notable growth over the past year with nearly 400 participants across its ecosystem, including global leaders in both traditional and decentralized finance. The blockchain space has long lacked a solution that allows regulated financial institutions to operate on-chain without compromising privacy, control, or compliance. Traditional public blockchains are too transparent for sensitive financial data, while private chains lack interoperability and scalability. By allowing institutions to tailor privacy settings to their specific needs, Canton overcomes the primary barrier to blockchain adoption: the conflict between transparency and financial confidentiality. This funding will allow Digital Asset to expand the Canton Network's infrastructure, onboard new institutions more quickly, and support the composability and interoperability required to bring billions of dollars of real-world assets on-chain. Over the next 12 to 18 months, there will be additional live deployments from major financial players, interoperability between applications across nodes, and a meaningful expansion into new global markets. 'Through this investment, YZi Labs is proud to support the mission of bringing tokenized real-world assets into the financial mainstream, and to contribute to the broader goal of advancing global institutional adoption.' said Ella Zhang, Head of YZi Labs. 'This investment from YZi Labs reinforces the growing demand for blockchain infrastructure that meets the rigorous standards of global financial markets,' said Yuval Rooz, Co-Founder and CEO of Digital Asset. 'Their deep conviction in foundational Web3 infrastructure, global track record in scaling emerging technologies, and expertise in accelerating blockchain adoption make them an ideal partner as we expand Canton's reach. With this new backing, we're advancing our mission to bring trillions of dollars more in real-world assets on-chain, creating a more connected and efficient financial ecosystem."
The Independent
an hour ago
- The Independent
Trump bill gives ICE $45 billion for detaining immigrants - more than it received in the last 15 years combined
The Trump administration's ' Big, Beautiful Bill' domestic spending legislation, which passed Congress yesterday, will provide Immigration and Customs Enforcement about $45 billion over the next four years to spend on detaining undocumented immigrants, part of an unprecedented investment in enforcement set to turbo-charge the administration's already sweeping campaign of arrests and deportations. The funding is more than the federal government spent on immigration detention during the previous three presidential administrations, combined, according to a Washington Post analysis. Aaron Reichlin-Melnick of the American Immigration Council told Democracy Now! that the spending package, which contains about $170 billion in wider immigration and border funding, makes ICE 'the single largest federal law enforcement agency in the history of the nation.' 'We're talking nearly 20 years' worth of detention funding to be spent only in a four-year period, and an increase to ICE's enforcement budget beyond anything we've ever seen before, allowing the agency to expand mass deportations over the next four years to every community nationwide,' he said. The White House has described the immigration funding as the linchpin of the Big, Beautiful Bill, more consequential even than its tax and Medicaid cuts, which are forecasted to add $3.3 trillion to the deficit over the next decade and cause 11.8 million more people to go without health coverage. 'Everything else—the [Congressional Budget Office] score, the proper baseline, the minutiae of the Medicaid policy—is immaterial compared to the ICE money and immigration enforcement provisions,' Vice President JD Vance wrote on X of the bill earlier this week. Federal officials plan to use the ICE windfall to roughly double the nation's immigration detention capacity, bringing the total to between 80,000 and 100,000 detention beds. If the administration's current strategy holds, those beds will largely be filled by migrants who would've been considered low priorities in past administrations. Among those arrested and deported under Trump so far, 61 percent had no previous criminal conviction, according to a Washington Post analysis. Even without the historic expansion in funding, the nation's detention system held a record number of migrants last month, over 56,000. The surge in detainees has prompted a worsening in conditions inside these facilities, according to critics. At least 11 people have died in ICE custody since Trump took office, a rate that means 2025 could be one of the worst years for migrant deaths in federal custody in decades. In addition to funding more detention centers, the administration has taken other steps to expand its immigration and border apparatus, including transferring hundreds of miles of land on the US-Mexico border to federal control to create military exclusion zones, and fast-tracking construction of border barriers in the Rio Grande by waiving environmental laws. The administration also plans to help Florida fund a migrant detention center in the Everglades dubbed 'Alligator Alcatraz.' Though, Florida has yet to ask for money to help run the facility, according to court records. A further expansion in the footprint of immigration enforcement and detention could set off domestic unrest. ICE enforcement prompted widespread, sometimes violent, protests in Los Angeles that saw the White House send in federal troops in response, and Democratic lawmakers have been involved in a number of chaotic confrontations with law enforcement while conducting oversight visits at ICE detention facilities and immigration courts.
