Core Viewpoint - The U.S. has imposed restrictions on semiconductor design software exports to China, significantly impacting major EDA companies like Cadence, Synopsys, and Siemens EDA [1][2][4]. Group 1: Market Reaction - Following the announcement, Cadence's stock dropped by 10.7%, while Synopsys fell by 9.6%, causing significant losses for shareholders [3]. - Synopsys' CEO claimed they had not received any notification from the U.S. Department of Commerce and reaffirmed their annual performance guidance, which helped the stock rebound by 3.5% in after-hours trading [3][6]. - Siemens EDA has yet to respond to the situation, leaving uncertainty about their strategy [3]. Group 2: Impact of Restrictions - The software sales restrictions are seen as a significant move, with a former U.S. Commerce Department official stating that EDA tools represent a "real bottleneck" for the industry [5]. - Synopsys derives 16% of its annual revenue from the Chinese market, while Cadence relies on 12%, indicating that these restrictions will adversely affect their financial performance [6][7]. - The U.S. actions raise questions about whether the intent is to suppress China or if it may inadvertently harm U.S. companies as well [8].