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| founded = {{Start date and age|1983}} in San Jose, California as Solomon Design Automation (SDA), renamed Cadence Design Systems in 1988
| founders = {{ubl|[[James Solomon]]|[[A. Richard Newton|Richard Newton]]|[[Alberto Sangiovanni-Vincentelli]]}}
| key_people = [[Anirudh Devgan]] ([[President (corporate title)|president]], [[Chief executive officer|CEO]])
| revenue = {{increase}} {{US$|4.64 billion|link=yes}} (2024)
| operating_income = {{increase}} US$1.35 billion (2024)
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| num_employees = {{approx.|11,700}} (December 2024)
| hq_location = {{nowrap|[[San Jose, California]], U.S.}}
| website = {{
| footnotes = <ref name=AnnualR2024>{{cite web|title=Cadence Design Systems, Inc. 2024 Annual Report |url=https://www.sec.gov/Archives/edgar/data/813672/000081367225000024/cdns-20241231.htm |date=February 21, 2025 |publisher=[[U.S. Securities and Exchange Commission]]}}</ref>
}}
'''Cadence Design Systems, Inc.''' (stylized as '''cādence''')<ref name="OriginalRef_Staff_investors">Investor's Business Daily [https://www.investors.com/news/management/leaders-and-success/cadence-ceo-lip-bu-tan-builds-once-troubled-cadence-into-long-term-leader/ CEO Lip-Bu Tan Molds Troubled Cadence Into Long-Term Leader] Retrieved November 12, 2020</ref> is an American [[multinational corporation|multinational]] technology and computational software company
==History==
===1983–1999===
Founded in 1983 in [[San Jose, California]],<ref name="OriginalRef_Sorkin_nytim.com"/> Cadence Design Systems began as an [[Electronic design automation|electronic design automation (EDA)]] company named Solomon Design Automation (SDA).<ref name="OriginalRef_NYTStaff1_nytimes.com"/> SDA's cofounders included [[James Solomon]], [[A. Richard Newton|Richard Newton]],<ref name="OriginalRef_NYTStaff1_nytimes.com"/> and [[Alberto Sangiovanni-Vincentelli]].<ref name="OriginalRef_NYTStaff1_nytimes.com"/><ref>{{Cite web|url=https://www.eetimes.com/author.asp?section_id=67&doc_id=1285941|title=Alberto Sangiovanni-Vincentelli receives EDAA Lifetime Achievement Award|last=Bailey|first=Brian|date=December 20, 2017|website=EE Times}}</ref> Cadence was formed by the merger of SDA and [[ECAD, Inc.|ECAD]]. A public company,<ref name="OriginalRef_NYTStaff1_nytimes.com"/> ECAD had been co-founded by Ping Chao, Glen Antle, and Paul Huang in 1982.<ref name="OriginalRef_NYTStaff1_nytimes.com"/>{{Not in source|date=March 2024}} Cadence Design Systems was officially formed through the 1988 merger of SDA and ECAD
In 1989, the company acquired [[Gateway Design Automation]] for $72 million.<ref name="OriginalRef_staff_nytimes.com_gateway"/> In 1990 it acquired Automated Systems Inc., and in doing so added "board design to its existing line of chip design software."<ref name="OriginalRef_Staff4_nytimes.com"/> In 1991, Cadence acquired its rival [[SCALD|Valid Logic Systems]] for around $200 million, its biggest acquisition yet. The revenues of the combined company were $390 million,
In 1996, Cadence acquired High Level Design Systems,<ref name="Ref_staff10_nytimes.com"/> at which point Cadence had 3,300 employees and $742 million in annual revenue. Following the resignation of Cadence's original CEO Joe Costello in 1997, Jack Harding was appointed CEO.<ref>WSJ [https://www.wsj.com/articles/SB877391809854588000 Cadence's Costello Steps Down As CEO to Join Software Firm] Retrieved October 21, 1997</ref> Ray Bingham was named CEO in 1999.<ref>EETimes [https://www.eetimes.com/harding-replaced-as-cadence-president/ Harding replaced as Cadence president] Retrieved April 27, 1999</ref> Cadence purchased Ambit Design Systems for $260 million, which made tools for [[system-on-a-chip]] technology, in 1998,<ref name="Ref_Nellis2_Reuters.com"/> and [[OrCAD Systems]] in 1999.<ref name="OriginalRef_staff6_eetimes"/>
===2000–2019===
Under urging by executives such as Jim Hogan and executive vice president [[Penny Herscher]], between 2001 and 2003, Cadence purchased a number of implementation tools through acquisition, such as Silicon Perspective, Verplex,<ref name="Ref_staff13_EETImes.com"/> and [[Chenming Hu|Celestry Design]].<ref name="OriginalRef_staff4_edn.com"/> The acquisitions were apparently in part to counter the 2001 purchase of [[Synopsys#Avanti Corporation|Avanti]] by [[Synopsys]], as Synopsys had become their primary market rival.<ref name="Ref_staff13_EETImes.com"/> In 2004, Mike Fister became Cadence's new CEO and president, with Ray Bingham becoming chairman. The former chairman, Donald L. Lucas, remained on the Cadence board.<ref>WSJ [https://www.wsj.com/articles/SB108439313804409685 Intel's Michael Fister Resigns To Take Top Job at Cadence] Retrieved May 13, 2004</ref> Between 2004 and 2007, Cadence purchased four companies, including the software developer [[Rob A. Rutenbar|Verisity]], and in 2006, it spent $1 billion in [[stock buyback]]s.<ref name="OriginalRef_Sorkin_nytim.com"/>
In 2007, Cadence announced it would be introducing a new chip-making process that laid wires diagonally as well as horizontally and vertically
===2020–2025===
Cadence had 9,300 employees and annual revenue of $3 billion in 2021.<ref name="OriginalRef_VItu_santafenewmexican.com"/> Most of its revenue came from licensing its software and intellectual property.<ref>{{Citation |date=July 22, 2022 |title=Big tech firm Cadence expands to drug simulation software through $500M deal |publisher=MedCity News |url=https://medcitynews.com/2022/07/big-tech-firm-cadence-expands-to-drug-software-simulations-through-500m-deal/ }}</ref> In April 2021, following a ''[[The Washington Post|Washington Post]]'' report on the use of Cadence and [[Synopsys]] technology in the [[People's Liberation Army]]'s [[military-civil fusion]] efforts,<ref>{{Cite news |last1=Nakashima |first1=Ellen |last2=Shih |first2=Gerry |date=April 9, 2021 |title=China builds advanced weapons systems using American chip technology |language=en-US |newspaper=[[The Washington Post]] |url=https://www.washingtonpost.com/national-security/china-hypersonic-missiles-american-technology/2021/04/07/37a6b9be-96fd-11eb-b28d-bfa7bb5cb2a5_story.html |access-date=2023-04-02 |issn=0190-8286}}</ref> U.S. legislators [[Michael McCaul]] and [[Tom Cotton]] requested that the [[United States Department of Commerce]] tighten controls on the sales of semiconductor manufacturing software.<ref>{{Cite web |date=April 15, 2021 |title=McCaul, Cotton Ask Administration to Restrict Sale of Chip-Making Software to China |url=https://foreignaffairs.house.gov/press-release/mccaul-cotton-ask-administration-to-restrict-sale-of-chip-making-software-to-china/ |access-date=2023-04-02 |website=[[United States House Committee on Foreign Affairs]] |language=en}}</ref><ref>{{Cite news |last=De Chant |first=Tim |date=April 16, 2021 |title=Congressmen ask Biden admin to keep chip design software away from China |work=[[Ars Technica]] |url=https://arstechnica.com/tech-policy/2021/04/china-shouldnt-get-us-semiconductor-design-software-congressmen-say/ |access-date=April 2, 2023}}</ref> On December 15, 2021, [[Anirudh Devgan]] assumed the role of Cadence president & CEO, after having been named Cadence president in 2017. Lip-Bu Tan retired as CEO and became executive chairman<ref>Guru Focus [https://www.gurufocus.com/news/1484844/cadence-announces-anirudh-devgan-to-become-ceo-in-december-2021-lipbu-tan-to-transition-to-role-of-executive-chairman-at-that-time Cadence Announces Anirudh Devgan to Become CEO in December 2021] Retrieved July 26, 2021</ref> and left this position and the board in May 2023. In 2021, Cadence launched an [[artificial intelligence]] platform to streamline processor development.<ref name="OriginalRef_Deutscher_siliconangle.com"/>
Although most of Cadence's customers for decades were "traditional semiconductor firms," around 40% of Cadence's revenue by 2022 came from customers who were "systems" oriented, or seeking products tailored for various industries that utilized chips in a central role. Cadence was also increasingly designing customized chips for clients and having them manufactured by third parties such as [[Taiwan Semiconductor Manufacturing]], a practice which had become more popular in the face of worldwide chip shortages and shipping issues, according to [[Reuters]].<ref name="Ref_Nellis2_Reuters.com"/> By late 2022, Cadence had clients such as [[Tesla, Inc.|Tesla]] and [[Apple Inc.]]<ref name="Ref_Nellis2_Reuters.com"/> Cadence acquired [[OpenEye Scientific Software]] for $500 million in September 2022, rebranding the company OpenEye Cadence Molecular Sciences and making it into a business unit.<ref name="OriginalRef_VItu_santafenewmexican.com"/> OpenEye signed [[Pfizer]] as a software client in October 2023.<ref>{{cite news |date=October 25, 2023 |title=Cadence Expands Pfizer's License to Molecular Design Software |url=https://www.cadence.com/en_US/home/company/newsroom/press-releases/pr/2023/cadence-expands-pfizers-license-to-molecular-design-software.html
Cadence purchased
In January 2025, Cadence announced the acquisition of
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==
Originally known as a creator of [[electronic design automation]] (EDA) software,<ref name="Ref_Nellis2_Reuters.com"/> the company currently develops software, hardware<ref name="Ref_Nellis_retuers.com"/> and [[Intellectual Properties|intellectual property]] (IP) used to design chips,<ref>[https://www.nytimes.com/2007/02/26/technology/26chip.html Design on Diagonal Path in Pursuit of a Faster Chip], John Markoff, ''[[The New York Times]]'', February 26, 2007</ref> [[chiplet]]-style products,<ref>{{cite news |author=Don Clark |date=May 11, 2023 |title=U.S. Focuses on Invigorating 'Chiplets' to Stay Cutting-Edge in Tech |url=https://www.nytimes.com/2023/05/11/technology/us-chiplets-tech.html
It also has tools for "electromagnetics, thermal and computational fluid dynamics in the high-tech electronics, aerospace and defense and automotive sectors,"<ref name="OriginalRef_VItu_santafenewmexican.com"/> and according to ''[[Investor's Business Daily]]'' in 2023, it specializes in products for fields such as "artificial intelligence and machine learning, cloud computing, 3D technology, and AI-enabled big data analytics."<ref>{{cite news |date=March 15, 2023 |title=Top Funds Can't Get Enough Of This Breakout AI Stock
===Integrated circuit software===
The company develops a number of technologies for creating custom integrated circuits. For example, its
===Digital implementation and signoff===
Cadence has a number of digital [[implementation]] and [[signoff]] tools, including '''Genus, Innovus, Tempus & Voltus''', among others. In 2020, Cadence integrated its Innovus [[place and route]] engine and optimizer into Genus [[logic synthesis|Synthesis]].<ref>EENews Europe [https://www.eenewseurope.com/news/cadences-digital-full-flow-promises-3x-faster-throughput-better-results Cadence's digital full flow promises up to 3X faster throughput, better results] Retrieved March 17, 2020</ref> '''Stratus'''
===System verification===
Cadence has developed a number of [[Formal_verification|formal
===Hardware emulation===
In 2015, Cadence announced the '''Palladium''' Z1 [[hardware emulation]] platform,<ref>EE Journal [https://www.eejournal.com/article/20160606-emulation/ State of Emulation] Retrieved June 6, 2016</ref>
The '''Protium''' [[FPGA prototyping]] platform was introduced in 2014,<ref>EDN [https://www.edn.com/cadence-unveils-protium-fpga-based-soc-prototyping-platform/ Cadence unveils Protium FPGA-based SoC prototyping platform] Retrieved July 14, 2014</ref> followed by the Protium S1 in 2017, which was built on [[Xilinx]] Virtex UltraScale [[FPGAs]].<ref>EET Asia [https://www.eetasia.com/multi-core-parallel-engine-powers-cadence-simulator/ Multi-core parallel engine powers Cadence simulator] Retrieved March 1, 2017</ref> Protium X1 rack-based prototyping was introduced in 2019,<ref>Tech Design Forum [https://www.techdesignforums.com/blog/2019/05/28/cadence-expands-protium-for-rack-based-prototyping/ Cadence Expands Protium for Rack-Based Prototyping] Retrieved May 28, 2019</ref> which Cadence claimed supported a 1.2 billion gate SoCs at around 5 MHz.<ref>Electronics Weekly [https://www.electronicsweekly.com/news/design/eda-and-ip/cadence-machine-can-prototype-1bn-gate-soc-fpgas-2019-05/ Cadence machine can prototype a 1bn gate SoC on FPGAs] Retrieved May 29, 2019</ref> with Palladium S1/X1 and Protium sharing a single compilation flow.<ref>EE Journal [https://www.eejournal.com/article/cadence-eda-update/ Cadence EDA Update] Retrieved May 8, 2017</ref> In 2021, Protium X2 was announced; Cadence claimed a 1.5X performance and 2X capacity improvement over Protium X1.<ref>Embedded [https://www.embedded.com/cadence-speeds-billion-gate-soc-verification/ Cadence speeds billion gate SoC verification] Retrieved Apr 7, 2021</ref><ref>New Electronics [https://www.newelectronics.co.uk/electronics-news/cadence-unveils-next-generation-palladium-z2-and-protium-x2-systems/236026/ Cadence unveils next-generation Palladium Z2 and Protium X2 systems] Retrieved Apr 6, 2021</ref>
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{{See also|Tensilica#Cadence Tensilica products}}
Cadence supplies [[semiconductor intellectual property]] (SIP) blocks, covering [[Interface_(object-oriented_programming)|interface]]
===PCB and packaging technologies===
The company
===Systems design and analysis===
The company has a number of tools for
'''Cascade Technologies, Inc''' includes hi-fidelity CFD solvers for multiphysics analysis of turbulence fluid flow.<ref name="CascadeCFDBlog">[https://community.cadence.com/cadence_blogs_8/b/cfd/posts/cadence-welcomes-cascade-technologies-1221740980 Cascade CFD Blog]</ref> Acquired by Cadence from Pointwise in 2021,
===Machine design and digital twins===
Cadence in 2021 acquired a number of system analysis products from NUMECA,<ref name="eeNewsNumeca"/> known for software tools used in the automotive, marine, aerospace, and power generation industries.<ref>{{cite news |date=January 22, 2021 |title=Week In Review: Auto, Security, Pervasive Computing |url=https://semiengineering.com/week-in-review-auto-security-pervasive-computing-51/
Cadence Design Systems in February 2024 launched its '''Cadence Millennium Enterprise Multiphysics Platform''', or Millennium M1. The hardware/software combination was designed for creating digital twins.<ref>{{Citation |last=Takahashi |first=Dean |date=February 1, 2024 |title=Cadence brings AI supercomputing to digital twin simulations |publisher=VentureBeat |url=https://venturebeat.com/games/cadence-brings-ai-supercomputing-to-digital-twin-simulations/ }}</ref> It draws from Cadence's older Fidelity CFD suite.<ref>{{Citation |last=WIlliams |first=Wayne |date=February 14, 2024 |title=Firm behind software used by AMD, Nvidia to make GPU and CPUs quietly unveils its own supercomputer — as it appears to emulate Apple by bringing hardware and software closer together |publisher=TechRadar |url=https://www.techradar.com/pro/firm-behind-software-used-by-amd-nvidia-to-make-gpu-and-cpus-quietly-unveils-its-own-supercomputer-as-it-appears-to-emulate-apple-by-bringing-hardware-and-software-closer-together }}</ref>
===Drug design===
Cadence's [[OpenEye Scientific Software|OpenEye Scientific]] division has computational molecular modeling and simulation software used by pharmaceutical and biotechnology companies for purposes such as drug discovery<ref name="OriginalRef_VItu_santafenewmexican.com"/> and antibody
===Artificial intelligence===
==Recognition==
In 2016, former Cadence CEO [[Lip-Bu Tan]] was awarded the Dr. Morris Chang Exemplary Leadership Award by the Global Semiconductor Alliance.<ref>GSA Website [https://www.gsaglobal.org/wp-content/uploads/gsa-event-archives/2016awardsdinner/morris-chang-winner/index.html Dr. Morris Chang Exemplary Leadership Award Winner] {{Webarchive|url=https://web.archive.org/web/20210126114055/https://www.gsaglobal.org/wp-content/uploads/gsa-event-archives/2016awardsdinner/morris-chang-winner/index.html |date=2021-01-26 }} Retrieved November 28, 2020</ref> In 2019, ''[[Investor's Business Daily]]'' ranked Cadence Design Systems #5 on its 50 Best Environmental, Social, and Governance (ESG) Companies list.<ref>{{Cite web |date=2 December 2019 |title=50 Best ESG Companies: A List Of Today's Top Stocks for Environmental, Social and Governance Values |url=https://www.investors.com/research/best-esg-companies-top-stocks-environmental-social-governance-values/ |website=Investor's Business Daily}}</ref> In 2020, Cadence ranked #45 on ''[[People (magazine)|People]]'' magazine's Companies that Care list.<ref>Great Place to Work [https://www.greatplacetowork.com/best-workplaces/companies-that-care/2020 People Companies that Care 2020] Retrieved November 28, 2020</ref> ''[[Fortune (magazine)|Fortune]]'' magazine named Cadence to its 100 Best Companies to Work For list for the sixth consecutive year in 2020.<ref>{{Cite web |title=Cadence |url=https://fortune.com/best-companies/2020/cadence |access-date=2020-04-28 |website=Fortune |language=en}}</ref> In 2021, Anirudh Devgan was awarded the prestigious IEEE/SEMI Phil Kaufman award and in 2022 was inducted into National Academy of Engineering.
== Sponsorship ==
In May 2022, the [[Formula 1]] motor racing team [[McLaren]] announced a multi-year partnership deal with Cadence.<ref>{{Cite web |title=McLaren Racing - McLaren Racing and Cadence announce new multi-year partnership |url=https://www.mclaren.com/racing/partners/cadence/mclaren-racing-and-cadence-announce-new-multi-year-partnership/ |access-date=2022-11-18 |website=www.mclaren.com |language=en}}</ref> Cadence partnered with the [[San Francisco 49ers]] in April 2023 on a several year technology project to fix energy efficiencies at [[Levi's Stadium]]. The deal also gave Cadence the naming rights to the team's mobile app.<ref>{{cite news |date=April 18, 2023 |title=San Francisco 49ers partner with Cadence Design Systems on multi-year technology partnership |url=https://www.sportsbusinessjournal.com/Daily/Issues/2023/04/18/Technology/san-francisco-49ers-cadence-design-systems.aspx
==Acquisitions timeline==
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|Advanced design technology for integrated circuits
|$94 million
|<ref name="Ref_staff10_nytimes.com">{{cite news |date=October 4, 1996 |title=Cadence Design to acquire High Level Design Systems |url=https://www.nytimes.com/1996/10/04/business/cadence-design-to-acquire-high-level-design-systems.html
|-
|1997
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|[[System-on-a-chip]] technology
|$260 million
|<ref name="Ref_Nellis2_Reuters.com">{{cite news |author=Stephen Nellis |date=January 18, 2022 |title=Focus: Cadence Design Systems aims to cash in on new custom-chip era |url=https://www.reuters.com/technology/cadence-design-systems-aims-cash-new-custom-chip-era-2022-01-18/
|-
|1998
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| CadMOS (signal integrity), Plato (routing), Get2Chip (logic synthesis), Silicon Perspective Corp. (floor planning and placement), Simplex (extraction and power analysis)
|multiple
|<ref name="Ref_staff13_EETImes.com">{{cite news |date=September 15, 2003 |title=Cadence struggles to regain rhythm |url=https://www.eetimes.com/cadence-struggles-to-regain-rhythm/
|-
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|not disclosed
|<ref>{{Cite web |last= |first= |title=Cadence to Acquire Secure-IC, a Leader in Embedded Security IP|url=https://www.businesswire.com/news/home/20250121792961/en/Cadence-to-Acquire-Secure-IC-a-Leader-in-Embedded-Security-IP |website=www.businesswire.com |language=en}}</ref>
|-
|2025
|Arm’s Artisan foundation IP business
|Foundation IPs such as standard cell libraries, memory compilers, and GPIOs
|not disclosed
|<ref>{{Cite web |last= |first= |title=Cadence to Acquire Arm Artisan Foundation IP Business
|url=https://www.businesswire.com/news/home/20250416075935/en/Cadence-to-Acquire-Arm-Artisan-Foundation-IP-Business
|website=www.businesswire.com |language=en}}</ref>
|}
==
===Lawsuits===
*'''Avanti Corporation'''
*'''Aptix Corporation''' Quickturn Design Systems, a company acquired by Cadence, was involved in a series of legal events with Aptix Corporation. Aptix licensed a patent to [[Mentor Graphics]] and the two companies jointly sued Quickturn over an alleged patent infringement. Amr Mohsen, CEO of Aptix, forged and tampered with legal evidence and was subsequently charged with conspiracy, perjury, and obstruction of justice. Mohsen was arrested after violating his bail agreement by attempting to flee the country. While in jail, Mohsen plotted to intimidate witnesses and kill the federal judge presiding over his case.<ref>[https://www.nytimes.com/2005/03/20/us/in-courts-threats-have-become-a-fact-of-life.html In Courts, Threats Become Alarming Fact of Life], Deborah Sontag, ''The New York Times'', 20 March 2005</ref> Mohsen was further charged with attempting to delay a federal trial by feigning incompetency.<ref>[http://www.eetimes.com/electronics-news/4049672/Odd-legal-saga-takes-an-ugly-turn Odd legal saga takes an ugly turn], Richard Goering, ''[[EE Times]]'', 02 August 2004</ref><ref>[http://www.eetimes.com/news/design/business/showArticle.jhtml?articleID=181401328 Jury finds Mohsen guilty of perjury, obstruction of justice], Dylan McGrath, ''[[EE Times]]'', 28 February 2006</ref> Due to the overwhelming misconduct, the judge ruled the lawsuit as unenforceable and Mohsen was sentenced to 17 years in prison.<ref>Bailey, Brian (September 6, 2011). [https://www.eetimes.com/amr-mohsen-a-story-so-bizarre/ "Amr Mohsen – A story so bizarre…"] EETimesRetrieved September 5, 2021</ref> Mentor Graphics subsequently sued Aptix to recoup legal costs. Cadence also sued Mentor Graphics and Aptix to recover legal costs.<ref>Santarini, Michael (February 19, 2003). [https://www.eetimes.com/mentor-loses-patent-suit-against-cadence/ "Mentor loses patent suit against Cadence"] EETimesRetrieved September 5, 2021</ref>
*'''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 control violations and Chinese military university sales ===
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 name="reuters_china"/> According to the [[U.S. Department of Justice]] and [[Bureau of Industry and Security]], Cadence's Chinese subsidiary knowingly sold Electronic Design Automation (EDA) hardware, software, and semiconductor design technology valued at over $45 million to NUDT between 2015 and 2021, despite the university being placed on the U.S. Entity List in February 2015 due to its use of American technology for supercomputers "believed to support nuclear explosive simulation and military simulation activities."<ref>{{cite news|url=https://www.rcrwireless.com/20250731/test-and-measurement/cadence-fines|title=Cadence hit with $140.6 million in fines for tech export violations|date=2025-07-30|publisher=RCR Wireless News|accessdate=2025-08-24}}</ref><ref>{{cite news|url=https://govconexec.com/2025/07/cadence-design-settles-illegal-tech-transfer-to-china/|title=Cadence Design Settles Export Violation Charge|date=2025-07-28|publisher=GovCon Executive|accessdate=2025-08-24}}</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>
== See also ==
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