United States v. Cadence Design Systems, Inc.

From February 2015 to April 2021, Cadence Design Systems Inc. (Cadence), a multinational electronic design automation (EDA) technology company headquartered in San Jose, California, and its indirectly owned and wholly controlled subsidiary in the People’s Republic of China (PRC), Cadence Design Systems Management (Shanghai) Co. Ltd. (Cadence China), engaged in a conspiracy to commit export control violations in connection with the provision of EDA tools that were subject to the Export Administration Regulations (EAR) to the National University of Defense Technology (NUDT), a restricted PRC military university, through Central South CAD Center (CSCC), an alias for NUDT, and another associated entity, Phytium Technology Co. Ltd. (Phytium), without seeking or obtaining the requisite licenses from the Department of Commerce. Specifically, Cadence, Cadence China, and their employees exported, reexported, and transferred in-country U.S.-origin EDA tools to CSCC in the PRC, despite having knowledge that CSCC was an alias for NUDT. As a result, Cadence and Cadence China exported and caused to be exported EDA tools at least 59 times through September 2020, when Cadence terminated Cadence China’s business relationship with CSCC due to CSCC’s association with NUDT.

On July 28, 2025, the Department and Cadence announced that Cadence had agreed to plead guilty to resolve the criminal investigation and entered into a parallel administrative settlement agreement with the U.S. Department of Commerce, Bureau of Industry and Security.  In its agreements with the government, Cadence agreed to pay criminal and civil penalties and forfeiture totaling more than $140.6 million.