Latest news with #exportcurbs
South China Morning Post
3 days ago
- Business
- South China Morning Post
Chip design software firms climb as US lifts curbs on China exports
Shares of Synopsys and Cadence Design Systems jumped on Thursday after the US lifted export curbs on chip design software to China, easing uncertainty around access to the crucial market. The restrictions, announced in late May, had essentially cut off the market that brings over 10 per cent of revenue for the industry's major players, hitting forecasts and knocking down shares. The export resumption meant both companies would 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' US$35 billion buyout of engineering software firm Ansys, the analysts added. Synopsys, which had pulled its forecast in May because of the curbs, rose 4.9 per cent. The company said on Wednesday it was still assessing the impact of export restrictions on China on its financials. Cadence's offices in San Jose, California. Photo: Reuters Cadence gained 5.1 per cent, while Ansys rose more than 4 per cent. Germany's Siemens, the third major player in the electronic design automation tools sector, was up about 0.8 per cent in Frankfurt.
Asharq Al-Awsat
4 days ago
- Business
- Asharq Al-Awsat
Chip Design Software Firms Climb as US Lifts Curbs on China Exports
Shares of Synopsys and Cadence Design Systems jumped on Thursday after the US lifted export curbs on chip design software to China, easing uncertainty around access to the crucial market. 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, Reuters reported. Synopsys, 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 and Ansys gained 6.1% and 3.5%, respectively, while Germany's Siemens, 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 US 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.
Reuters
4 days ago
- Business
- Reuters
Chip design software firms climb as US lifts curbs on China exports
July 3 (Reuters) - Shares of Synopsys and Cadence Design Systems jumped on Thursday after the U.S. lifted export curbs on chip design software to China, easing uncertainty around access to the crucial market. 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 ( 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.
Reuters
20-06-2025
- Business
- Reuters
China's rare earth magnet shipments halve in May due to export curbs
BEIJING, June 20 (Reuters) - China's overseas shipments of rare earth magnets halved in May from April, tumbling to their lowest levels in more than five years due to export curbs. Beijing said this month that it would speed up its approval process, a concession made after the U.S. and China agreed to dial back trade tensions. In the meantime, however, industry sources say Chinese customs officials have become increasingly cautious about processing rare earth cargoes. This is particularly so for rare earth magnets because there is only a single code to cover magnets despite there being a variety of chemistries, said the sources who were not authorised to speak to media and declined to be identified. China, the world's largest rare earth magnet producer accounting for over 90% of global supply, decided in early April to impose restrictions on exports of seven medium-to-heavy rare earth products and some magnets. That's rocked supply chains crucial to auto, aerospace, semiconductor and military equipment sectors around the world. Last month, China shipped out 1,238 metric tons of rare earth permanent magnets, down 52.9% from April and the lowest level for a single month since February 2020, data from the General Administration of Customs showed on Friday. April's shipments had also halved from March. On a year-on-year basis, May shipments were down 74%. Sources have also previously said that customs are holding up some shipments of lower-performance rare earth magnets used in appliances and consumer electronics because of confusion over how to apply Beijing's export curbs. China's commerce ministry said on Thursday that "a certain number" of rare earth export licence applications had been approved but did not disclose details. Chinese rare earth magnet producers JL MAG Rare-Earth ( opens new tab and Innuovo Technology ( opens new tab announced in recent weeks that they have secured a few export licenses for some clients. Exports of rare earth magnets for January-May slipped 14.5% from the same period last year to 19,132 tons, the lowest for the period since 2021.
Reuters
12-06-2025
- Business
- Reuters
Synopsys restarts some China services, sales of core tools still blocked, source says
BEIJING, June 12 (Reuters) - Synopsys (SNPS.O), opens new tab has resumed offering some services in China, relaxing a suspension it implemented earlier this month to comply with new U.S. export curbs, a source with direct knowledge of the matter told Reuters. As tensions flared between the world's two largest economies last month, Washington ordered a broad range of companies to stop shipping goods to China. The decision led Synopsys, a California-based provider of semiconductor design software, to halt sales and services in China and shut down access to its SolvNet customer support site. Synopsys resumed some services last week, however, including sales of non-core hardware and intellectual property that allow it to serve some existing clients, said the source, who declined to be named as they were not permitted to speak to the media. Synopsys did not immediately respond to a request for comment on Thursday. SolvNet has also reopened with restrictions, including limits on access to some Electronic Design Automation software-related documents, the source added. But sales of essential EDA tools remain suspended, meaning that Synopsys will still be unable to attract new customers as its intellectual property and hardware cannot be put to use, the source said. The IP consists of code the company sells to users for chip design, while the hardware systems such as HAPS and ZeBu are part of Synopsys' hardware-assisted verification product portfolio, primarily used for verification of acceleration processes. EDA software is used to compile IP and other designs onto hardware. Synopsys, along with Cadence (CDNS.O), opens new tab and Siemens EDA ( opens new tab, dominates the EDA software chipmakers can use to design semiconductors for everything from smartphones to computers and cars. The three companies control more than 70% of China's EDA market, Chinese state news agency Xinhua reported in April. Long-term restrictions on Chinese chip design companies' access to the tools would deal a significant blow to the industry in China. Synopsys suspended its annual and quarterly forecasts after the U.S. implemented the restrictions, as they cast uncertainty over its ability to sell chip design software in China.
