On May 29th, it was reported that the Trump administration has informed American companies that provide semiconductor design software to stop selling services to Chinese companies, and the US government is currently evaluating a broader policy statement on the issue.

Recently, electronic design automation software manufacturers including Cadence, Synopsys, and Siemens EDA received a letter from the US Department of Commerce requesting to stop providing relevant technology to Chinese customers. It is reported that the Chinese region is no longer able to access Siemens' EDA technology websites and other resources.

It is currently unclear whether all American EDA companies have received the letter.

During the second quarter earnings conference call held on May 28th, Sassine Ghazi, CEO of New Think Technology, stated, "We have heard about relevant reports and speculations, but New Think Technology has not yet received any notification from BIS. Therefore, our reiterated annual performance guidance reflects our current understanding of BIS export restrictions and our expectation of a year-on-year decline in 'revenue' in the Chinese market. ”

An official from the US Department of Commerce stated that they are "reviewing exports of strategic significance to China. In some cases, the Department of Commerce has suspended existing export licenses or imposed additional license requirements during the review period

It is currently unclear how broad these restrictions are, but according to informed sources, this may actually mean a ban on conducting business in China. The Chinese market is of great significance to these companies - according to a report by New Think Technology, the sales in the Chinese market for the 2024 fiscal year are close to $1 billion, accounting for approximately 16% of its total revenue. Kaideng Electronics stated that its sales in the Chinese market amounted to 550 million US dollars, accounting for 12% of its total revenue.

The measures taken by the United States to contain China's semiconductor industry are becoming increasingly severe. Firstly, cut off the equipment used by China to manufacture the most advanced electronic components, and then gradually expand the scope of the rules' influence. Cadence and Synopsys' software is used to design various products, from the highest end processors from companies like NVIDIA and Apple, to simple components such as power regulation.

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