Synopsys, one of the leading semiconductor design software providers in the U.S., has stopped all sales and services in China after receiving a directive stemming from new U.S. export restrictions under the Trump administration.
According to an internal memo reviewed by Reuters, Synopsys instructed its China-based staff to halt operations, suspend accepting new orders, and immediately cut off customer support. This move follows a letter from the U.S. Department of Commerce’s Bureau of Industry and Security, which imposed broad prohibitions on the company’s dealings with China, effective May 29, 2025.
The company confirmed that it is:
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Blocking all sales and product fulfillment in China
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Pausing all new orders until further guidance
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Restricting access to its support portal, SolvNetPlus, for Chinese users
These measures apply not only to Chinese firms but also to employees of global clients operating in China and military-linked users globally.
Why This Matters
Synopsys, along with Cadence and Siemens EDA, dominates more than 70% of China’s Electronic Design Automation (EDA) software market, according to China’s state news agency Xinhua. EDA software is essential for designing advanced semiconductors, meaning the ban is a serious blow to China’s chip development capabilities.
The move follows the U.S. government’s broader crackdown on technology exports to China, which includes bans on design tools and critical semiconductor manufacturing chemicals. The government has also revoked existing export licenses for certain U.S. suppliers.
In response, Synopsys has also suspended its financial forecasts, citing uncertainty caused by the new restrictions.
The development marks a significant escalation in U.S.-China tech tensions and is expected to further disrupt China’s efforts to advance its domestic chip design industry.
