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President Donald Trump’s administration has directed American companies that provide software essential to designing semiconductor chips to cease doing business with Chinese entities, according to a report by the Financial Times, which cited multiple sources familiar with the decision.

The report states that the U.S. Department of Commerce informed leading Electronic Design Automation (EDA) companies—including Cadence (CDNS.O), Synopsys (SNPS.O), and Siemens EDA—that they must stop supplying their technology to Chinese customers.

Shares of both Cadence and Synopsys dropped sharply following the news, with Cadence falling 10% and Synopsys down 11%.

According to the Financial Times, the order came from the Bureau of Industry and Security (BIS), which is responsible for export control and security matters.

Cadence declined to provide a comment. Synopsys and Siemens EDA did not immediately respond to requests for a statement.

A Commerce Department spokesperson confirmed the agency is currently reviewing exports that are critical to U.S. national security and strategic interests with respect to China. The spokesperson added, “In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending.”

Synopsys generates roughly 16% of its yearly revenue from China, while Cadence derives about 12% of its revenue from the Chinese market.