Chip design software firms climb as US lifts curbs on China exports
The export resumption means Synopsys and Cadence will only lose one month of revenue in the current quarter
The restrictions, announced in late May, had essentially cut off the market that brings over 10 per cent of revenue for the industry’s major players, hitting forecasts and knocking down shares.
The export resumption meant both companies would only lose one month of revenue in the current quarter, Mizuho analysts said. The easing trade tensions may also clear the path for long-awaited Chinese approval of Synopsys’ US$35 billion buyout of engineering software firm Ansys, the analysts added.
Synopsys, which had pulled its forecast in May because of the curbs, rose 4.9 per cent. The company said on Wednesday it was still assessing the impact of export restrictions on China on its financials.
Cadence gained 5.1 per cent, while Ansys rose more than 4 per cent. Germany’s Siemens, the third major player in the electronic design automation tools sector, was up about 0.8 per cent in Frankfurt.