US President Donald Trump’s administration has ordered US firms that offer software used to design semiconductors to stop selling their services to Chinese groups, the Financial Times reported on Wednesday, citing several people familiar with the move.
Electronic Design Automation groups, which include Cadence, Synopsys and Siemens EDA, were told by the commerce department to stop supplying their tech, the report added.
Shares of Cadence were down 10% and Synopsys fell 11% after the report.
The Bureau of Industry and Security issued the directive to the companies, according to people cited in the Financial Times report.
Cadence declined to comment, while Synopsys and Siemens EDA did not immediately respond to requests for comment.
A spokesperson for the commerce department said it is reviewing exports of strategic significance to China, while noting “in some cases, commerce has suspended existing export licences or imposed additional licence requirements while the review is pending”.
Synopsys relies on China for about 16% of its annual revenue, while China accounts for about 12% of annual revenue for Cadence.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.