"Recall as we started sometime in FY 2024 communicating that we are seeing both a cumulative impact of the restrictions in China as well as the macro situation inside China have caused us to continue on communicating that this deceleration will continue, and that headwind has gotten stronger as we go through the each quarter over the last year, year and a half," he said. The 2025 fiscal year ends in October.
The Bureau of Industry and Security informed Cadence last week that the company will need a license to export its chip design software to customers in China, according to a Thursday filing.
"The letter stated that BIS has determined that these shipments pose an unacceptable risk of use in or diversion to a 'military end use' in China or for a Chinese 'military end user,'" Cadence said.