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As the US eases restrictions on China exports, chip design software companies are growing.

Stocks of Synopsys, Cadence Design Systems and Cadence Design Systems soared Thursday in premarket trading after the United States

Export restrictions lifted

On chip design software to China. This signals a thawing of trade tensions between two of the world's largest economies.

Both companies, as well as Siemens of Germany, announced that they would resume access to their EDA tools for Chinese clients.

Siemens gained 1.3% on Frankfurt's stock exchange, while Synopsys rose 5.9% in the U.S. and Cadence gained 5.4%.

According to a report published by the state-run Xinhua News Agency in April, these three companies control more than 70% China's EDA Market.

EDA software is essential for designing semiconductors in smartphones, cars and other computing devices.

The U.S. Commerce Department has also withdrawn a requirement for licensing on ethane exported to China that was imposed in the beginning of this year.

These two measures were part a series tit for tat of trade restrictions that President Donald Trump's Administration initiated following China's suspension in April of rare earth exports.

(source: Reuters)