The U.S. government has rescinded its export restrictions on chip-design software to China, semiconductor software companies Synopsys and Cadence announced Thursday. 

“Synopsys is working to restore access to the recently restricted products in China,” the California-based software maker said in a statement. 

Its rival, Cadence, confirmed with CNBC that the U.S. Bureau of Industry and Security, which falls under the Department of Commerce, had reversed the export restrictions.

“We are in the process of restoring access to our software and technology to affected customers in compliance with US export laws,” a Cadence spokesperson said.

The U.S. Commerce Department did not immediately respond to a request for comment from CNBC.

The U.S. had reportedly told several chip design software companies on May 23 that they were required to obtain licenses before exporting goods, such as software and chemicals for semiconductors, to China. 

Other software providers impacted by the ban include Siemens EDA, an American subsidiary of Germany’s Siemens. Siemens has also reportedly been told it can resume its China business.

Shares of Synopsys and Cadence rose more than 6% and 7% respectively, in overnight trading on the Robinhood trading platform after the export curbs were lifted.

The three firms are considered part of the U.S.-dominated electronic design automation (EDA) market, which encompasses software, hardware, and essential services for designing chips and semiconductor devices.

According to TrendForce, Synopsys, Cadence, and Siemens EDA held a global market share of 31%, 30%, and 13%, respectively, in 2024.

The news comes after China signaled last week that they are making progress on a trade truce with the U.S. and confirmed conditional agreements to resume some exchanges of rare earths and advanced technology.