US Eases Chip Design Export Curbs on China, But Nvidia Left Behind

Shares in Synopsys and Cadence surge, while Nvidia remains constrained by AI chip export bans

US Reverses Chip Design Export Ban to China

The US Department of Commerce has lifted recent export restrictions on chip design technologies sold to China, offering immediate relief to major firms like Synopsys and Cadence Design Systems. The move comes as part of a new trade framework agreed between Washington and Beijing, aiming to ease rising tensions in the tech sector.

Synopsys and Cadence Shares Rally

Following the announcement:

• Synopsys (NASDAQ: SNPS) shares jumped 6% to $555.00
• Cadence (NASDAQ: CDNS) gained 5.1% to $326.99

Both companies are global leaders in chip design software, providing the essential tools that enable chipmakers to develop semiconductors.

Synopsys confirmed it had been notified by the US government that export restrictions imposed in May 2025 had been revoked with immediate effect, and it is now restoring access to its products in China.

Siemens Also Affected, But Nvidia Left Out

Siemens, another major player in the chip design space, also reportedly welcomed the move, although a formal comment was not issued at the time of writing.

In contrast, Nvidia (NASDAQ: NVDA) remains locked out of the Chinese AI market. The US government has imposed much tighter controls on Nvidia’s ability to sell advanced AI chips to China, with no indication that these restrictions will be lifted soon.

Nvidia’s CEO Jensen Huang has previously called the restrictions a “failure”, voicing concerns over lost revenue and market share in one of the world’s largest tech markets.

Trade Talks Behind the Shift

The decision to lift design software restrictions signals progress in US-China trade negotiations, following June’s agreement on a framework deal.

Beijing has repeatedly cited US chip export bans as a major sticking point, and the recent easing is seen as a goodwill gesture aimed at de-escalating tech tensions.

Minimal Revenue Damage, Analysts Say

According to analysts at Mizuho, the export ban had only a limited short-term impact on Synopsys and Cadence. They now expect:

• Just a one-month revenue dip in the current quarter
• Renewed confidence in Synopsys’ proposed $35bn acquisition of Ansys (NASDAQ: ANSS)

The deal is currently being reviewed by Chinese regulators, and reports suggest the approval process is in advanced stages.

Nvidia's Position: Why the Stock Didn’t Jump

Despite the broader easing of export rules, Nvidia’s shares did not rise, as:

• The company remains subject to stricter controls targeting AI chips
• US policy aims to limit China’s access to advanced AI for security reasons
• Nvidia faces uncertain regulatory prospects, which continue to cloud its outlook

The OpenAI situation has also added to uncertainty. Although Nvidia chips power many OpenAI models, recent tension around the startup’s internal direction and partnerships has left investors watching cautiously.

Summary

• US lifts chip design export ban for Synopsys, Cadence, and Siemens
• Shares surge, with Synopsys up 6%, Cadence up 5.1%
• Nvidia remains restricted, unable to sell AI chips to China
• Trade talks progress, but only partial easing of tech tensions
• Mizuho analysts expect limited revenue loss, and Ansys merger on track
• Nvidia’s muted response reflects ongoing regulatory headwinds

Sources: (Investing.com, Reuters.com)