San Jose-based Cadence Design admits to illegally supplying China, pays fine

By Ian King Bloomberg Cadence Design Systems Inc pleaded guilty to charges accusing the company of violating US export controls by selling hardware and solution to China s National University of Defense Instrument Related Articles San Jose strikes deal with PG E committing utility to delivering major grid improvements Intel cuts back spending workforce as struggling chip maker mounts comeback Philanthropist Wendy Schmidt insists science and immersive media can inspire action for the planet UK regulator seeks special status for Apple and Google that could mandate changes for Big Tech OpenAI CEO Sam Altman warns of an AI fraud problem The San Jose California-based company a maker of chip design tools revealed it took a one-time charge of million related to settling cases brought by the Department of Justice and the Department of Commerce s Bureau of Industry and Defense The Chinese institution is under military control and was placed on the Commerce Department s entity list in for using US components to produce computers that aid nuclear explosive simulation and military simulation exercises the Department of Justice reported in a separate declaration The violations occurred from to the agency noted Doing business in China the largest arena for semiconductors and related tool has become increasingly complex for Cadence and its peers under increasing restrictions put in place by Washington aimed at protecting national shield But the companies did win a latest reprieve Earlier this month the Trump administration lifted a stipulation that required export licenses for chip design system to Chinese customers Separately Cadence raised its revenue forecast for the months ending in December to billion to billion That compares with an average of analysts predictions of billion The shares rose more than in extended trading following the earnings release They had earlier closed at in regular New York trading leaving them up this year Cadence and rival Synopsys Inc dominate the sector for tool and computers used to design semiconductors and other electronics More stories like this are available on bloomberg com Bloomberg L P