Synopsys, a major player in the semiconductor design software sector, has put a halt on all sales and services to China following new U.S. export restrictions. As of May 29, 2025, Synopsys instructed its Chinese branches to cease any sales and stop processing new orders, complying with the directive from the U.S. Bureau of Industry and Security, which stipulates that shipments to China require a license.

This development significantly affects the electronic design automation market, where Synopsys, along with competitors Cadence and Siemens EDA, holds considerable influence. Chinese semiconductor companies rely heavily on the tools provided by these U.S. firms to develop chips. According to Reuters, Synopsys has a notable market share in China, making this suspension impactful on the local industry's access to critical technology.

In light of these restrictions, Synopsys has also paused its financial predictions for both annual and quarterly performance, citing unpredictability brought about by the recent changes. Additionally, the company has ensured compliance with the export controls by disabling Chinese clients’ access to its SolvNetPlus support platform. This move reflects broader efforts by the U.S. to limit China's reach into essential semiconductor technologies, further intensifying trade tensions between the two nations.