Cadence Design Systems Faces New U.S. Export License Requirements for China

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was informed by the Bureau of Industry and Security (BIS) that a license is now required for the export, re-export, or in-country transfer of electronic design automation software and technology classified under ECCNs 3D991 and 3E991 to China or Chinese military end users. The new requirements pose an unacceptable risk of use in or diversion to a military end use in China. Cadence is engaging with BIS to obtain further clarification and assess the impact on its business and financial results.

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About Cadence Design Systems Inc.

Cadence Design Systems Inc. is a pivotal entity within the technology sector, specializing in electronic design automation (EDA) software and engineering services. Its software suite underpins the design process of integrated circuits (ICs) and electronic systems, streamlining tasks related to simulation, verification, and synthesis. A crucial tool for semiconductor companies, Cadence's products facilitate the creation of advanced electronic chips and devices, impacting industries such as telecommunications, consumer electronics, and automotive. As a key player in the semiconductor industry’s supply chain, Cadence has positioned itself as a leader in delivering cutting-edge design solutions that drive innovation and efficiency. By enabling rapid advancements in chip design, Cadence plays a vital role in propelling technological progress across various sectors.