Synopsys Halts Forecasts After New U.S. Export Controls to China

Published 22 hours agoSNPS

Synopsys Halts Forecasts After New U.S. Export Controls to China

Synopsys has announced the suspension of its third-quarter and full-year financial forecasts. The decision follows the recent introduction of U.S. export restrictions targeting the sale of chip design software to China. These new regulations have added substantial uncertainty to the company's business, prompting the withdrawal of its previously issued predictions.

The U.S. Department of Commerce's Bureau of Industry and Security informed Synopsys of these restrictions, which directly impact its sales activities concerning Chinese customers. As Reuters reported, this has led to a 2.5% drop in Synopsys shares, highlighting investor apprehension about the potential financial repercussions of these export controls.

The broader industry is also feeling the effects, with other companies like Cadence and Siemens EDA required to obtain new export licenses. Synopsys, meanwhile, is currently evaluating the extent of the impact on its operations, as the company continues to navigate the challenging regulatory landscape.

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