11:47 AM EDT, 07/03/2025 (MT Newswires) -- Shares of Cadence Design Systems ( CDNS ) and Synopsys ( SNPS ) advanced intraday Thursday after the companies said that the US rescinded export restrictions on electronic design automation software to China.

In a Thursday filing with the US Securities and Exchange Commission, Cadence said that the Department of Commerce's Bureau of Industry and Security informed it the day before that license requirements for such exports to China had been lifted, effective immediately.

Cadence said it was in the process of restoring access to the previously restricted software and technology.

Synopsys ( SNPS ), which announced the development on Wednesday, made a similar remark regarding restoring access. At the end of May, the company suspended its guidance for fiscal 2025 and the third quarter in light of the export curbs imposed by the US.

Synopsys ( SNPS ) said on Wednesday that it was assessing the impact of export restrictions on China.

Shares of Cadence were up 5.1% in Thursday trade, while Synopsys ( SNPS ) rose 4.7%.

The US lifted its chip software restrictions as part of a trade deal with China, Wedbush Securities said in a note.

"In turn, we would hypothesize that China will likely smooth the process for permits on materials it recently restricted including rare earths," Wedbush analysts including Matt Bryson said. "Net, this news is a clear positive for (electronic design automation) suppliers."

Washington and Beijing have agreed to slash tariffs for a period of 90 days, with a deadline to finalize a broader deal set for August.

Price: 327.16, Change: +16.21, Percent Change: +5.21