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SFsticated (talk | contribs) →Controversies: creating as section by including the existing material on Lawsuits and adding material on Export Control Violations |
SFsticated (talk | contribs) →Export Control Violations and Chinese Military University Sales: sentence case for subsection title per MOS:CAPS |
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In January 2025, Cadence announced the acquisition of [[:fr:Secure-IC|Secure-IC]], an embedded security IP platform provider; the acquisition is expected to close by mid-2025, following the usual regulatory approvals and other closing conditions, and be immaterial to 2025 revenue and earnings.<ref>{{cite news |last=Clarke |first=Peter |title=Cadence to acquire French security specialist Secure-IC |url=https://www.eenewseurope.com/en/cadence-to-acquire-french-security-specialist-secure-ic/ |website= eenews |date=2025-01-23 |accessdate=2025-02-02 }}</ref>
In mid-2025, the [[Second presidency of Donald Trump|Trump administration]] briefly paused the issuing of licenses for exports of American EDA software to China, including Cadence products.<ref>{{Cite news |last=Swanson |first=Ana |date=2025-05-28 |title=U.S. Pauses Exports of Airplane and Semiconductor Technology to China |url=https://www.nytimes.com/2025/05/28/business/economy/jet-engine-chip-software-exports-to-china.html |access-date=2025-05-29 |work=[[The New York Times]] |language=en-US |issn=0362-4331}}</ref><ref>{{Cite news |last=Hawkins |first=Mackenzie |date=2025-07-02 |title=US Lifts Chip Design Software Curbs on China in Trade Deal |url=https://www.bloomberg.com/news/articles/2025-07-03/siemens-says-us-has-rescinded-chip-software-curbs-on-china |url-access=subscription |access-date=2025-07-03 |publisher=[[Bloomberg News]]}}</ref> In July 2025, it was announced that Cadence would plead guilty to violating U.S. [[export controls]] and pay US$140 million.<ref name="reuters_china">{{Cite news |last=Freifeld |first=Karen |date=2025-07-28 |title=Exclusive: Cadence to plead guilty and pay $140 million to US for China sales |url=https://www.reuters.com/world/china/cadence-plead-guilty-pay-140-million-us-china-sales-2025-07-28/ |access-date=2025-07-30 |work=[[Reuters]] |language=en}}</ref>
==Products==
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*'''Berkeley Design Automation''' In 2013, Cadence sued Berkeley Design Automation (BDA) for circumvention of a license scheme to link its Analog FastSpice (AFS) simulator to Cadence's Analog Design Environment (Virtuoso ADE).<ref>[https://www.eetimes.com/cadence-sues-berkeley-design-automation Cadence sues Berkeley Design Automation], Dylan McGrath, ''[[EE Times]]'', 15 April 2013</ref> The lawsuit was settled less than one year later with an undisclosed payment of BDA and a multi-year agreement to support interoperability of AFS with ADE through Cadence's official interface. BDA was bought by [[Mentor Graphics]] a few months later.<ref>[https://www.eenewseurope.com/news/mentor-buys-berkeley-da-after-cadence-lawsuit Mentor buys Berkeley DA after Cadence lawsuit], Peter Clarke, eeNews Europe, 24 March 2014</ref>
=== Export
In July 2025, Cadence Design Systems agreed to plead guilty to criminal charges and pay over $140 million in combined penalties for illegally exporting semiconductor design technology to China's [[National University of Defense Technology]] (NUDT), a military university controlled by [[China's Central Military Commission|China's Central Military Commission]].<ref
The violations involved employees at Cadence's Chinese subsidiary using intermediary companies, including Central South CAD Center (CSCC) and later Phytium Technology, to disguise sales to the restricted military university.<ref>{{cite news|url=https://www.wilmerhale.com/en/insights/client-alerts/20250806-the-latest-doj-export-control-enforcement-action-highlights-china-risks|title=Latest DOJ Export Control Enforcement Action Highlights China Risks|date=2025-08-05|publisher=WilmerHale|accessdate=2025-08-24}}</ref> Internal communications revealed that Cadence China employees were explicitly instructed to refer to NUDT only in Chinese characters and use "CSCC" in English correspondence because "the subject [was] too sensitive."<ref>{{cite news|url=https://www.fenwick.com/insights/publications/doj-and-bis-flex-enforcement-priorities-as-u-s-semiconductor-design-company-agrees-to-guilty-plea-and-140m-fine|title=DOJ and BIS Flex Enforcement Priorities as U.S. Semiconductor Design Company Agrees to Guilty Plea and $140M Fine|date=2025-08-13|publisher=Fenwick & West|accessdate=2025-08-24}}</ref> The Department of Justice noted that Cadence received only partial cooperation credit because the company "failed to voluntarily disclose the misconduct" and did not fully facilitate interviews of China-based employees, ultimately resulting in the company being placed on three years of corporate probation.<ref>{{cite news|url=https://www.crowell.com/en/insights/client-alerts/joint-criminal-and-civil-export-controls-enforcement-lessons-from-the-cadence-case|title=Joint Criminal and Civil Export Controls Enforcement: Lessons from the Cadence Case|date=2025-08-20|publisher=Crowell & Moring|accessdate=2025-08-24}}</ref>
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