Semiconductor software powerhouse Synopsys has directed its teams in China to immediately cease all services and sales within the country, following new export control measures issued by the U.S. government.
This decision was outlined in an internal memo reviewed by Reuters.
The U.S. has recently expanded restrictions on tech exports to China, requiring companies to obtain licenses before sending specific goods, and revoking previously granted permissions.
The list of affected items includes semiconductor design software and critical chemicals. According to sources familiar with the policy, this broad directive is designed to limit China’s access to advanced chip development tools.
Synopsys, a key player in chip design technology, responded by pulling its full-year and quarterly forecasts on Thursday after receiving a formal notice from the Bureau of Industry and Security (BIS) within the U.S. Department of Commerce.
The notice outlined the updated export constraints related to China.
The company’s internal letter sent Friday informed China-based employees: “Based on our initial interpretation, these new restrictions broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025.”
To comply, Synopsys has frozen sales, order fulfillment, and new transactions across its Chinese operations.
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Major Blow to China’s Chip Development Sector
This operational shutdown affects all Chinese customers, including global firms with branches in China and any entities connected to China’s military, regardless of their physical location. These actions, not previously reported, mark a significant shift in how Synopsys operates in the region.
No immediate public comment was provided by Synopsys.
Together with Cadence (CDNS.O) and Siemens EDA, Synopsys is one of the leading suppliers of electronic design automation (EDA) tools.
These tools are vital for designing the microchips used in smartphones, laptops, and automotive systems. Restricting access to such software is expected to heavily impact Chinese semiconductor firms, which depend heavily on these technologies.
Chinese state news agency Xinhua reported in April that Synopsys, Cadence, and Siemens’s Mentor Graphics hold a combined market share of over 70% in China’s EDA space.
Known Chinese users of Synopsys and Cadence include firms such as Brite Semiconductor, Zhuhai Jieli, and VeriSilicon.
As part of the restrictions, Synopsys has also shut off access to its customer support platform, SolvNetPlus, for Chinese clients, according to the internal memo.
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