The United States has imposed new export restrictions targeting a wide range of goods shipped to China, including semiconductor design software, chemicals, and industrial tools, Reuters reported, quoting sources.These new controls, likely to heighten Beijing-Washington tensions, target critical supply points to restrict China’s access to essential sector components.The affected items include semiconductor design software, chemical compounds like butane and ethane, industrial machinery, and aviation-related equipment. The US commerce department recently dispatched notifications to various companies about these enhanced restrictions. Last Friday, companies providing electronic design automation (EDA) software for semiconductors were informed about new licensing requirements for Chinese customers, according to two Reuters.The Department confirmed its ongoing assessment of strategic exports to China, stating that “in some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending.”Cadence shares dropped 10.7% whilst Synopsys fell 9.6%. Synopsys’ CEO Sassine Ghazi clarified during an analyst call that they hadn’t received any communication from the Bureau of Industry and Security. “We are aware of the reporting and speculations, but Synopsys has not received a notice from BIS … We have not received a letter,” Ghazi stated.Post-market trading saw both companies recover somewhat, with 3.5% gains. Synopsys maintained its 2025 revenue projections. The potential removal of Chinese customers could substantially affect these companies’ revenues and Chinese chip design capabilities.A former Commerce Department official noted these EDA tools are crucial control points, revealing that similar restrictions were considered during Trump’s presidency but deemed too severe. Chinese markets represent significant revenue streams for these companies, with China contributing approximately 16% for Synopsys and 12% for Cadence.