Latest news with #chipdesign
Reuters
2 days ago
- Business
- Reuters
Exclusive: Cadence nears deal to pay over $100 million to US for China sales, sources say
July 28 (Reuters) - Cadence Design (CDNS.O), opens new tab is expected to pay over $100 million to the U.S. government as part of a deal to resolve an investigation into sales of its chip design products to a Chinese military university believed to be involved in simulating nuclear explosions, according to two people familiar with the matter. Cadence is accused of illegally selling chip design technology to front companies representing China's National University of Defense Technology, the sources said. NUDT's supercomputers are thought to support nuclear explosive simulation and military simulation activities, according to U.S. Commerce Department notices restricting shipments to the university. San Jose, California-based Cadence, which said earlier this year it began settlement discussions with the U.S. over sales to China in December, did not immediately respond to a request for comment, nor did NUDT. The Justice Department declined immediate comment. The Commerce Department did not immediately respond to a request for comment. The potential deal, which comes as the U.S. and China meet for new trade talks, shows the U.S. is still willing to enforce U.S. export controls on China, even as it relaxes some of the restrictions as part of negotiations. The sources said the deal is not finalized. NUDT was put on the Commerce Department's restricted trade list in 2015 to keep it from using U.S. technology to power its supercomputers, according to department postings. Other aliases and locations were added to the university's listing in 2019 and 2022, including Hunan Guofang Keji University, Central South CAD Center, and CSCC. The U.S. investigation into Cadence, which began more than four years ago, involves 'historical sales by Cadence to customers in China,' according to a company filing. Cadence received a subpoena from the U.S. Commerce Department in February 2021, demanding records related to certain customers in China. A related November 2023 subpoena followed from the Justice Department over the company's business activity in China. Cadence sold its EDA technology to NUDT through the CSCC or Central South CAD Center alias about 50 times between 2015 and 2020, according to one source familiar with the probe. Chip developer Tianjin Phytium Information Technology, which traces its roots to NUDT, also has been tied to Cadence sales for the university, another source said. Phytium was added to the restricted trade list in 2021. It did not immediately respond to a request for comment. Several employees at a Chinese subsidiary of Cadence were terminated over the sales, one of the sources said. Entities are placed on the restricted trade list, formally known as the entity list, for activities deemed contrary to U.S. national security or foreign policy interests. U.S. companies are not allowed to ship goods and technology to them without licenses from the Commerce Department, which are generally denied. Cadence will hold a call about its second-quarter financial results at 2 p.m. Pacific Time (2100 GMT) on Monday. Cadence, whose customers include major semiconductor manufacturers and companies such as Nvidia and Qualcomm, is known for its electronic computer-aided design software. Electronic design automation (EDA) tools are key to designing chips and verifying that they are bug-free. NUDT has developed chips to power university supercomputers, including Tianhe-2, once touted as the world's best supercomputer, which the U.S. believes has been used in research on or the development of nuclear explosive devices. Twelve percent of Cadence's revenue came from China last year, down from 17% in 2023, amid regulatory developments and geopolitical tensions.
Yahoo
22-07-2025
- Business
- Yahoo
Why One Wall Street Analyst Is Growing More Bullish on This Nvidia Partner's Stock
Arm (ARM) shares climbed Monday as analysts at Wells Fargo raised their price target for the chip designer's stock ahead of quarterly earnings due next week. The analysts raised their target to $175 from $145, well above the mean of analysts tracked by Visible Alpha, which sits at about $143. Shares of Arm rose over 3% to close near $162 Monday, and have added roughly a third of their value in 2025. Arm, which develops CPU designs used in chips from companies like Nvidia (NVDA), Microsoft (MSFT) and Alphabet's (GOOGL) Google, could be well-positioned to benefit from 'expanding AI opportunities,' including growing data center demand, Wells Fargo told clients in a note Sunday. "We continue to estimate strong growth for Arm's royalties business despite tariff-related uncertainty," Wells Fargo said, adding that Arm's ramp of AI and custom silicon designs could "drive meaningful royalty revenue growth' this fiscal year. Arm is scheduled to report fiscal first-quarter earnings after the market closes on July 30. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
15-07-2025
- Business
- Yahoo
Synopsys Set to Close $35 Billion Ansys Deal After China's Nod
(Bloomberg) -- Chip-design software maker Synopsys Inc. secured China's approval to buy Ansys Inc., setting the stage to close the $35 billion deal later this week. Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests The State Administration for Market Regulation gave the acquisition a green light, with certain conditions, the agency said in a statement. Among other things, the Chinese watchdog mandated that Synopsys cannot reject requests from customers to renew their contracts. The nod from China is a major win for Synopsys after mounting geopolitical tensions threatened to derail the transaction. Washington this year briefly considered limiting Synopsys and its rivals from dealing with Chinese clients on the grounds of national security. The company said it now plans to close the transaction on July 17. 'The combination will create the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products,' Synopsys said in a statement. Synopsys and Cadence Design Systems Inc. — the two American firms that dominate the global market for software tools used to design chips — got drawn into the Washington-Beijing trade war this year. The US imposed a licensing requirement that would've limited exports of their products, part of its response to Beijing's limits on rare earths, before abruptly lifting that mandate weeks later. Following Beijing's decision, Synopsys has cleared one of the last major hurdles to a deal to intended to shore up its market position. The buyout, announced in early 2024, was already approved by European and US authorities. In June, reports emerged that Chinese officials were delaying it in part because of escalating tensions over Washington's chip sanctions. Shares of California-based Synopsys were little changed in New York on Monday. Pennsylvania-based Ansys jumped as much as 5.6% US companies seeking Chinese antitrust approval — particularly for deals in the tech sector — are often caught in the middle of geopolitical disputes between the countries. Although neither Synopsys nor Ansys is based in China, the two companies needed Beijing's sign-off because China is one of the world's largest semiconductor markets. In 2018, US-based Qualcomm Inc. scrapped a $44 billion bid for Dutch chipmaker NXP Semiconductors NV after failing to secure a nod in time. As recently as 2023, Intel Corp. abandoned its proposed $5.4 billion acquisition of Tower Semiconductor Ltd. for the same reason. Broadcom Inc.'s $61 billion merger with software maker VMware Inc. eventually went through, although investors remained on edge throughout the process due to speculation that China would hold up the deal. 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot 'The Turbulence Is Brutal': Four Shark Tank Businesses on Tariffs Trump's Cuts Are Making Federal Data Disappear Trade War? No Problem—If You Run a Trade School ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
14-07-2025
- Business
- Yahoo
Synopsys Clears Final Regulatory Hurdle for $35B Ansys Deal
Synopsys said it received conditional approval from Chinese regulators for its $35 billion purchase of Ansys. The decision marked the final regulatory hurdle for the deal. The approval had been delayed amid U.S.-China tensions over technology design software provider Synopsys (SNPS) said Monday it received approval from Chinese regulators for its $35 billion purchase of Ansys (ANSS), clearing the final regulatory hurdle for the deal. The companies said they expect to close the transaction by about Thursday, after China's State Administration for Market Regulation agreed to approve the deal with some conditions, including that the combined companies do not end existing contracts with Chinese customers. The purchase was announced in January 2024, but was reportedly delayed as Beijing and Washington sparred over technology trade restrictions. Reuters reported that a breakthrough came earlier this month when the U.S. Commerce Department eased export rules on chip design and engineering software to China. U.S. and European Union officials had already approved the transaction. The two firms had already been in a seven-year partnership at the time of the agreement, and Synopsys CEO Sassine Ghazi said then that the merger 'will enable us to deliver a holistic, powerful and seamlessly integrated silicon to systems approach to innovation to help maximize the capabilities of technology R&D teams across a broad range of industries." According to the deal, Ansys investors would receive $197 in cash and 0.3450 shares of Synopsys for every share of Ansys they owned. Ansys shares were up 4% in recent trading, near their all-time high in the wake of the release. Synopsys shares were little changed, and have added about 16% year-to-date. Read the original article on Investopedia
South China Morning Post
14-07-2025
- Business
- South China Morning Post
Tech war: China approves Synopsys' acquisition of Ansys after US lifts EDA ban
China's antitrust regulator on Monday approved American chip design software giant Synopsys ' US$35 billion acquisition of Ansys, weeks after the administration of US President Donald Trump lifted export controls on electronic design automation (EDA) products to the mainland. The State Administration for Market Regulation (SAMR) said in a statement that it gave the green light to Synopsys' deal for Ansys, a computer-aided engineering software vendor, under the condition that the two firms honour their contractual obligations to Chinese clients. Synopsys and Ansys were also required not to terminate existing agreements or reject any Chinese customer's request to renew their contracts. The conditions set by SAMR reflect the importance of EDA technology to China's semiconductor industry, while sending a sign of easing bilateral tensions after Washington lifted export curbs on the software. The US Commerce Department's Bureau of Industry and Security lifted export controls on electronic design automation software sales to China earlier this month. Photo: Shutterstock
