Synopsys, a major U.S. semiconductor design software firm, has abruptly suspended all sales and service operations in China in response to newly imposed Synopsys export ban under the U.S. government. According to an internal memo sent to staff in China, the company received a formal notice from the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) on Thursday, informing it of wide-reaching new rules governing exports to China. The restrictions took immediate effect as of May 29, 2025.
To comply with the directive, Synopsys has halted all ongoing sales, order fulfillment, and new transactions in China. This includes suspending access to software products, services, and even customer support through its SolvNetPlus portal. The internal memo, not previously reported, indicated that these limitations also apply to employees of global customers based in China and to Chinese military users regardless of location.
Impact on Global Semiconductor Supply Chain
The implications of the Synopsys export ban and the company’s sudden sales freeze are far-reaching, given Synopsys’ central role in the global chip design ecosystem. Alongside Cadence Design Systems and Siemens EDA, Synopsys is one of the top three providers of electronic design automation (EDA) tools. These tools are essential for semiconductor companies to develop chips used in everyday technologies, including smartphones, computers, and vehicles.
Chinese semiconductor design firms heavily depend on these high-end American software solutions. The restriction is expected to significantly impact the domestic chip design efforts of numerous Chinese firms. According to Chinese state media Xinhua, Synopsys, Cadence, and Siemens’ Mentor Graphics collectively hold more than 70% of China’s EDA market.
Notable Chinese companies such as Brite Semiconductor, Zhuhai Jieli, and VeriSilicon have previously acknowledged their reliance on Synopsys and Cadence software. Losing access to these tools could slow development timelines, reduce innovation, and increase dependency on alternative, possibly less advanced, domestic solutions.
Uncertainty and Silence from Synopsys
In the wake of the new restrictions under the Synopsys export ban, Synopsys has suspended both its annual and quarterly financial forecasts, reflecting the uncertainty surrounding the full impact of these measures on its global business. The company has declined to publicly comment on the developments, and the duration of the export restrictions remains unclear.
The move aligns with broader efforts by the U.S. government to curtail China’s access to advanced semiconductor technologies amid ongoing geopolitical tensions and concerns over military applications. The abruptness of the implementation has left Chinese partners and stakeholders in a state of uncertainty, with no timeline yet for the resumption of services or potential exemptions.
As regulatory frameworks tighten and global supply chains face further strain, the semiconductor industry is bracing for potential long-term shifts in collaboration, technology sharing, and innovation pipelines. For now, Synopsys’ operations in China remain frozen due to the Synopsys export ban, awaiting further clarification from U.S. authorities.
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