Export restrictions prompt Synopsys to suspend sales to China
Synopsys Inc, a leading semiconductor design software firm, has instructed its staff in China to cease services and sales within the country, halting new orders as well, following compelling U.S. export restrictions.
This decision comes after receiving a letter from the Bureau of Industry and Security within the U.S. Department of Commerce, informing Synopsys of new export restrictions concerning China, according to an internal letter reviewed by Reuters.
In response to this order, the U.S. has mandated a wide range of companies to halt shipments to China without a license, also revoking licenses previously granted to certain suppliers. The affected products encompass design software and chemicals for semiconductors.
In a letter sent to its Chinese employees yesterday, Synopsysstates that these new restrictions effectively prohibit the sale of their products and services in China, valid from May 29, 2025. The firm is therefore blocking sales and fulfillment in China and has ceased taking new orders until further clarification is received.
The restrictions apply to all customers in China, including employees of global customers working at Chinese sites and Chinese military users regardless of their location.
Although Synopsys and Cadence make up less than 20 percent of their revenue from China, the region is a significant growth area within the semiconductor industry. Restricting Chinese firms' access to critical EDA tools that these companies heavily rely on could adversely affect the industry.
In addition to Synopsys and Cadence, Siemens EDA holds a considerable market share in the Chinese electronic design automation (EDA) software market. As per the Xinhua news agency, Synopsys, Cadence, and Siemens' Mentor Graphics control more than 70 percent of China's EDA market.
Several Chinese firms reportedly utilize Synopsys and Cadence software, including Brite Semiconductor Co and VeriSilicon Co. The letter sent to the Chinese employees also noted that access to Synopsys' customer support portal, SolvNetPlus, had been temporarily disabled.
Synopsys declined to comment on the matter.
- The new export restrictions from the U.S. Department of Commerce have led Synopsys to halt sales and new orders for their technology in China, which includes finance-critical design software for semiconductors.
- The impact of these restrictions extends beyond Synopsys, potentially adversely affecting the general-news semiconductor industry in China, particularly Chinese companies that heavily rely on electronic design automation software providers such as Synopsys, Cadence, and Siemens' Mentor Graphics.
