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Siemens has been notified by the US government that will allow sales of chip design software to reopen to China, as a trade agreement between Washington and Beijing is in effect, according to German technology companies.
The US Department of Commerce recently told Siemens that export restrictions introduced in May “are no longer in place,” the company told the Financial Times, adding that it has “restored full access to software and technology” under control, and that it has resumed “selling and supporting Chinese customers.”
The announcement comes a week after the US and China signed a trade agreement to reduce tariffs from the 145% level in April.
The software restrictions used in semiconductor designs were introduced by Washington as part of a package of restrictions that also affects jet engines and ethane exports.
They were introduced after China concluded its exports of rare earths, a key manufacturing ingredient in electronics and defense equipment, as part of retaliation against US tariffs.
The Financial Times previously reported that prior to talks in London, which culminated in the White House with a deal signed last week, it had been considering ease of tipping restrictions if Beijing increased its rare earth exports.
China said on Friday that both sides have “confirmed more” details of London’s speech.
Siemens EDA is one of three US-based companies that dominate the global market for electronic design automation software, enabling designers and manufacturers to develop and test the blueprints for a new generation of semiconductors.
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The EDA sector accounts for just 1.6% of the $600 million global semiconductor industry, but it serves as a key bottleneck in the supply chain for developing the latest cutting-edge chips. For many years, the US has placed restrictions on exporting chips and chip-making equipment on national security concerns.
Synopsis, Cadence and Siemens EDA generates almost all the software needed to design, produce and test the most sophisticated chips. According to a study by Shanghai-based consulting firm ICWise, despite China’s efforts to create cutting-edge chips, they account for nearly 80% of China’s EDA market.
Last month, the FT reported that China’s anti-trust regulator delayed approval of a $35 billion merger between the summary and engineering software developer ANSYS after Washington attempted to ban U.S. chip design software sales to China.
