US chip software makers thrive in China with non-Huawei clients

Local government purchases appear to make up for lost sales

20200609n HiSilicon chip

A chip developed by Huawei subsidiary HiSilicon is displayed. © Reuters

SHUHEI YAMADA, Nikkei Asia Tech chief editor

TOKYO -- One would assume that American trade sanctions imposed on Huawei Technologies would have been a heavy blow to U.S. chip-design software providers. Yet, earnings reports of such U.S. companies show no sign of a slowdown.

Synopsys and Cadence Design Systems, the two American companies that form a virtual global oligopoly with Siemens unit Mentor Graphics, have enjoyed uninterrupted success in China, selling to non-Huawei clients.

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