US orders chip design software companies to stop Chinese sales: FT
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The news: The Trump administration has directed US electronic design automation (EDA) companies, such as Cadence, Synopsys and Siemens EDA, to stop supplying their technology to Chinese groups, the Financial Times reported, citing unnamed sources.
Letters from the US Department of Commerce’s Bureau of Industry and Security reportedly informed the companies to halt sales, according to the sources.
What they said: When approached for comment, the Commerce Department declined to comment on the letters but told the paper it is “reviewing exports of strategic significance to China”, and that in some cases it “has suspended existing export licences or imposed additional licence requirements while the review is pending”.
Synopsys said it had not received a letter or notice from BIS. Siemens EDA did not respond to the FT’s requests for comment.
The numbers: China accounts for roughly 16% of Synopsys’s revenue (almost USD1 billion) and 12% of Cadence’s revenue (USD550 million), according to the FT.
Synopsys shares fell 9.6% while Cadence shares dropped 10.7%, though both rebounded over 3% in after-hours trading.
The source: Financial Times
