Cadence Design Systems (CDNS): what its 10-K says it depends on

Customers

Semiconductor industry

earns fromnamed as a risk

If growth in the semiconductor and electronics systems industries slows or stalls, then demand for our products and services could decrease and our business, financial condition and results of operations could be adversely affected.Risk factors (Item 1A)

Also named by GGG, MTRN, SOLS, UCTT

Suppliers

Hardware component suppliers and contract manufacturers

depends onnamed as a risk

Our reliance on single or a limited number of suppliers and contract manufacturers for certain hardware components and contract manufacturers for production of our hardware products has resulted in, and could continue to result in, some product delivery delays and reduced control over contractual terms and quality.Risk factors (Item 1A)

Partners and platforms

Semiconductor foundries

depends onnamed as a risk

If we fail to optimize our products for use with major foundries’ manufacturing processes or major IP providers’ products, or if our access to such foundry processes or third-party IP products is hampered, then our products and services may become less desirable to our customers, resulting in an adverse effect on our business, financial condition and results of operations.Risk factors (Item 1A)

Also named by SNPS

Third-party cloud hosting services

depends onnamed as a risk

We outsource substantially all of the infrastructure relating to our cloud solutions to third-party hosting services.Risk factors (Item 1A)

NVIDIA

The M2000 is a specialized, AI-accelerated platform co-developed with NVIDIA to dramatically speed up complex simulations in fields like semiconductor design, aerospace and defense, and drug discovery.Business (Item 1)

Also named by AMD, ANET, BAM, COHR, DOCN, HPE, INTC, NOW and 3 more

Other companies

Hexagon Smart Solutions AB Design & Engineering business

In fiscal 2025, we announced our intent to acquire the Design & Engineering (“D&E”) business of Hexagon Smart Solutions AB (“Hexagon”), including its MSC Software division, which is expected to accelerate our ISD strategy.Business (Item 1)

Competitors

Synopsys, Inc.

competes withnamed as a risk

Key competitors include Synopsys, Inc., Ansys, Inc. (acquired by Synopsys), Siemens EDA, and a variety of other tool providers, electronics device manufacturers with in-house EDA capabilities, technical and computational software companies, electronics design and consulting firms, and IP companies.Business (Item 1)

Also named by KEYS

Siemens EDA

competes withnamed as a risk

Key competitors include Synopsys, Inc., Ansys, Inc. (acquired by Synopsys), Siemens EDA, and a variety of other tool providers, electronics device manufacturers with in-house EDA capabilities, technical and computational software companies, electronics design and consulting firms, and IP companies.Business (Item 1)

Places

China

earns from · a substantial percentage of our revenuenamed as a risk

For example, the ongoing geopolitical and economic uncertainty between the United States and China, where we conduct business and have derived a substantial percentage of our revenue, the unknown impact of current and future U.S. and Chinese trade regulations, including tariffs and other trade restrictions, and geopolitical risks with respect to Taiwan, which serves as a central hub for the technology industry supply chain, could, directly or indirectly, materially harm our business, financial condition and results of operations.Risk factors (Item 1A)

Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more

Taiwan

depends onnamed as a risk

For example, the ongoing geopolitical and economic uncertainty between the United States and China, where we conduct business and have derived a substantial percentage of our revenue, the unknown impact of current and future U.S. and Chinese trade regulations, including tariffs and other trade restrictions, and geopolitical risks with respect to Taiwan, which serves as a central hub for the technology industry supply chain, could, directly or indirectly, materially harm our business, financial condition and results of operations.Risk factors (Item 1A)

Also named by AAOI, AAPL, AB, ADI, AEHR, ALAB, AMAT, AMD and 50 more

Ireland

concentrated innamed as a risk

Our operations are subject to income and transaction taxes in the United States and in multiple foreign jurisdictions, with a significant amount of our foreign earnings generated by our subsidiaries organized in Ireland and Hungary.Risk factors (Item 1A)

Also named by AAPL, ACN, ADI, AGX, BEN, CELH, COR, DDOG and 13 more

Hungary

concentrated innamed as a risk

Our operations are subject to income and transaction taxes in the United States and in multiple foreign jurisdictions, with a significant amount of our foreign earnings generated by our subsidiaries organized in Ireland and Hungary.Risk factors (Item 1A)

Also named by COO

Silicon Valley, Northern California

concentrated innamed as a risk

Our corporate headquarters, including certain of our research and development operations and certain of our distribution facilities, and a significant portion of our employees are located in the Silicon Valley area of Northern California, a region known to experience seismic activity and wildfires.Risk factors (Item 1A)

Japan

earns from

We also use a third-party distributor to license our products and services to certain customers in Japan.Business (Item 1)

Also named by A, AAPL, AFL, AMKR, ANET, BMY, BSX, CAT and 25 more

Hazards

Earthquakes

operates innamed as a risk

Our corporate headquarters, including certain of our research and development operations and certain of our distribution facilities, and a significant portion of our employees are located in the Silicon Valley area of Northern California, a region known to experience seismic activity and wildfires.Risk factors (Item 1A)

Also named by AAPL, AMKR, AN, ANET, APP, BRO, CEG, CGNX and 37 more

Wildfires

operates innamed as a risk

Our corporate headquarters, including certain of our research and development operations and certain of our distribution facilities, and a significant portion of our employees are located in the Silicon Valley area of Northern California, a region known to experience seismic activity and wildfires.Risk factors (Item 1A)

Also named by AAON, AMRC, AZO, BRK/B, CCI, CINF, CNP, COST and 17 more

Commodities and inputs

Euro

exposed to its price · $2,454.6 million notionalnamed as a risk

In connection with our pending acquisition of Hexagon’s D&E business, we entered into foreign currency forward exchange contracts to mitigate the impact of currency price fluctuations of the European Union euro relative to the U.S. dollar on the contractual cash consideration payable to Hexagon at close.Market risk (Item 7A)

Also named by ABBV, ABNB, ABT, ADBE, ADI, AME, AMG, AMGN and 186 more

Regulators

U.S. Department of Commerce Bureau of Industry and Security (BIS)

subject to · $140.6 millionnamed as a risk

Under the agreements, we paid BIS and the DOJ aggregate net penalties and forfeitures of $140.6 million during the three months ended September 30, 2025.Risk factors (Item 1A)

Also named by AMAT, COHR, GRC, SMCI

U.S. Department of Justice (DOJ) plea agreement

subject tonamed as a risk

Failure to comply with the terms of the plea agreement, the administrative settlement agreement or our probation could result in further criminal, civil, or administrative proceedings or denial of export privileges.Risk factors (Item 1A)

Laws and programs

OECD Pillar Two global minimum tax

subject to · 15% global minimum taxnamed as a risk

For example, the Organisation for Economic Co-operation and Development continues to advance proposals or guidance in international taxation, including the establishment of a 15% global minimum tax.Risk factors (Item 1A)

Also named by ABNB, ACN, ADI, ADM, ADSK, AKAM, ALB, AMAT and 70 more

EU Artificial Intelligence Act

subject to · up to 7% of worldwide annual turnovernamed as a risk

The EU AI Act applies to companies that develop, use and/or provide AI in the EU and includes fines for breach of up to 7% of worldwide annual turnover.Risk factors (Item 1A)

Also named by ABNB, ADP, AIOT, AKAM, ALAB, AMG, APP, AVAV and 24 more

China rare earth export controls

subject tonamed as a risk

These include the imposition of retaliatory tariffs on certain U.S.-origin goods; the implementation of new export controls by China on various critical minerals, including rare earths metals; the scheduling of further retaliatory tariff measures; and other actions that may affect us directly or indirectly.Risk factors (Item 1A)

Also named by KLAC, MTSI, OSK, RMD

BIS Entity List

subject tonamed as a risk

If a customer was added to the Entity List or became subject to new or expanded trade restrictions, it could have a negative effect on our ability to sell products and provide services to these customers.Risk factors (Item 1A)

Also named by MXL, SNPS

BIS EDA software export license requirement (ECCNs 3D991 and 3E991)

subject tonamed as a risk

While we have since restored access to EDA Software and Technology for affected customers in accordance with these updated U.S. export regulations, the temporary license requirements negatively impacted our revenue in China during this period.Risk factors (Item 1A)

BIS Affiliates 50% Rule

subject tonamed as a risk

For example, effective September 29, 2025, BIS issued an interim final rule that extended the export restrictions imposed on entities identified on the Entity List or the Military End-User List and certain other sanctioned parties, to entities that are 50% or more owned by one or more of such entities.Risk factors (Item 1A)

China semiconductor self-sufficiency policy (2030)

competes withnamed as a risk

In particular, China’s stated national policy to be a global leader in all segments of the semiconductor industry by 2030 has resulted in and may continue to cause increased competitive capability in China.Risk factors (Item 1A)

U.S. outbound investment review mechanism

subject tonamed as a risk

For example, the U.S. government implemented an outbound investment review mechanism, effective January 2, 2025, which could limit our ability to pursue investment opportunities outside the United States.Risk factors (Item 1A)

One Big Beautiful Bill Act (OBBBA)

subject to

In addition, the One Big Beautiful Bill Act (“OBBBA”) enacted in the United States on July 4, 2025, included significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions including the immediate expensing of United States research and development expenditures.Risk factors (Item 1A)

Also named by AA, ABR, ADI, ADM, ALB, AMAT, AMGN, AMKR and 121 more