Semiconductor design software firm Synopsys has instructed its Chinese staff to halt all services and sales in China. This move is to comply with new U.S. export restrictions set to take effect on May 29, 2025.
U.S. Commerce Department Letter Sparks Action
On Thursday, Synopsys received a notice from the U.S. Commerce Department’s Bureau of Industry and Security. The letter detailed tight controls on design software and semiconductor chemicals bound for China. Synopsys promptly suspended its annual and quarterly forecasts.
All Chinese Customers Affected
An internal memo sent on Friday to employees in China said the restrictions “broadly prohibit the sale of our products and services in China.” It covers every Chinese customer, including global clients operating in China and Chinese military users worldwide.
Customer Support Portal Disabled
The company also blocked access to its SolvNetPlus support portal for Chinese users. Synopsys will not accept new orders or fulfill existing ones until further notice or clarification from authorities.
Major Impact on EDA Market
Synopsys is one of three leading electronic design automation (EDA) vendors, alongside Cadence and Siemens EDA. Together, they hold over 70% of China’s EDA market. Their tools are vital for designing chips used in smartphones, computers, and cars.
Chinese Chipmakers Face Challenge
Chinese design firms such as Brite Semiconductor, Zhuhai Jie Li, and VeriSilicon rely on Synopsys and Cadence software. The export curbs threaten to disrupt China’s semiconductor industry by cutting off access to top-tier EDA tools.
Industry Eyes Regulatory Clarifications
Synopsys declined to comment further on the situation. Other EDA providers and Chinese customers are now watching for updates. How long the suspension will last depends on the U.S. government’s licensing process and any subsequent guidance.
