Synopsys, a leading chip design software maker, has received a letter from the U.S. Commerce Department imposing new restrictions on sales to China. The company cited this as the reason for pulling its guidance for the full fiscal year. It also reported slowing growth in China during the April quarter.
The U.S. Commerce Department’s Bureau of Industry and Security (BIS) has determined that Synopsys’ shipments pose an unacceptable risk of use in or diversion to a “military end use” in China or for a Chinese “military end user.” This led to restrictions on exports, affecting companies like Synopsys and rival Cadence.
Synopsys CEO Sassine Ghazi had previously stated the company saw a slowdown in China during its fiscal second quarter. Around 10% of the company’s $1.6 billion in quarterly revenue came from customers in China. The Chinese government has implemented policies that favor its own companies, including backing investment funds and developing independent chip design know-how.
As a result of these restrictions, Synopsys has suspended guidance for the full fiscal year and its stock closed down 1.6% on Thursday. The company is currently assessing the potential impact of the BIS letter on its business and financial condition.
Source: https://www.cnbc.com/2025/05/29/synopsys-china-export.html