Cadence Design Systems: Difference between revisions

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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Software Curbs on China in Trade Deal |url=https://www.bloomberg.com/news/articles/2025-07-03/siemens-says-us-has-rescinded-chip-software-curbs-on-china |url-access=subscription |access-date=2025-07-03 |publisher=[[Bloomberg News]]}}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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==Lawsuits Controversies ==

===Lawsuits===

*'''Avanti Corporation'''{{main|Cadence Design Systems, Inc. v. Avanti Corp}} From 1995 until 2002, Cadence was involved in a [[Cadence Design Systems, Inc. v. Avanti Corp|6-year-long legal dispute]]<ref name="bw">[https://www.bloomberg.com/news/articles/2001-09-02/the-avant-saga-does-crime-pay Business Week (pay wall)] overview of the entire case, after the criminal trial but before the purchase by [[Synopsys]].</ref> with [[Avanti Corporation]] (brand name "Avant!"), in which Cadence claimed Avanti stole Cadence code, and Avanti denied it. According to Business Week ''"The Avanti case is probably the most dramatic tale of white-collar crime in the history of Silicon Valley"''.<ref name="bw" /> The Avanti executives eventually pleaded ''no contest'' and Cadence received several hundred million dollars in restitution. Avanti was then purchased by [[Synopsys]], which paid $265 million more to settle the remaining claims.<ref>[http://www.eedesign.com/article/showArticle.jhtml?articleId=10806192 EEDesign article] about the final settlement.</ref> The case resulted in a number of [[legal precedent]]s.<ref>[http://direct.bl.uk/research/05/0C/RN149436533.html Cadence v. Avanti: The UTSA and California Trade Secret Law] {{Webarchive|url=https://archive.today/20120707114217/http://direct.bl.uk/research/05/0C/RN149436533.html |date=2012-07-07 }}, Danley, J., Berkeley Technology Law Journal, 2004, Vol 19; Part 1, pages 289-308</ref>

*'''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 ==