The Trump administration is clamping down on U.S. companies that provide semiconductor design software, according to a new report from the Financial Times. The move comes after the U.S. Commerce Department revoked the AI Diffusion Rule set under the Biden administration with the intent of creating a new set of export rules.
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“Several people familiar with the move said the commerce department had told Electronic Design Automation groups, which include Cadence, Synopsys and Siemens EDA, to stop supplying their technology to China,” said the FT.
CDNS, SNPS, SIEGY Stocks Affected by New Chip Software Export Curbs
The U.S. Commerce Department’s Bureau of Industry and Security arm reportedly sent letters to the affected companies detailing the new export restrictions. The restrictions include suspension of export licenses and added license conditions.
More companies could be affected, as an official said that the department is “reviewing exports of strategic significance to China.” The restrictions aim to limit the development of AI within China as the global technological race marches forward.
Cadence (CDNS), Synopsys (SNPS), and Siemens (SIEGY) are all trading lower on the news.
