(Yicai) May 30 -- Shares of Chinese developers of electronic design automation software rose after American EDA giants Synopsys and Cadence Design Systems said they are evaluating the potential impact of new export restrictions.

Primarius Technologies [SHA: 688206] gained 4.3 percent in Shanghai today after surging 20 percent yesterday. Semitronix [SHE: 301095] dipped 3.2 percent, walking back part of yesterday's 20 percent jump. Empyrean Technology [SHE: 301269] fell 4.6 percent today after climbing 14.7 percent yesterday.

EDA refers to software and tools used to design and test integrated circuits. Industry sources estimate that international vendors currently hold about 70 percent of China’s EDA market. However, domestic tools are gradually improving in performance, and their market share is expected to grow.

“Synopsys is currently assessing the potential impact of the Bureau of Industry and Security letter on its business, operating results, and financial condition,” the California-based company said yesterday.

Following notification of new export restrictions, Synopsys announced it would suspend issuing its annual and quarterly financial guidance due to uncertainty surrounding its ability to sell chip design software in China.

Synopsys generated nearly USD1 billion in revenue from China in fiscal 2024, accounting for around 16 percent of its total sales.

The global EDA industry is highly concentrated, dominated by Cadence, Synopsys, and Siemens EDA. According to estimates from TrendForce, Synopsys held a 32 percent market share in 2021, followed by Cadence with 30 percent, and Siemens EDA with 13 percent -- together controlling around three-quarters of the global market.

Even Cadence disclosed that it was notified last week that exports or re-exports of EDA software and technology to China now require a license.

The new requirements are complex, the California-based company said, adding that it is engaging with the BIS to seek further clarification while assessing the potential impact on its operations and financial results.

Editor: Emmi Laine