American electronic design automation (EDA) software and information technology company Synopsys has told its China branch’s employees to shut down all sales and services in China immediately, media reported.
The instruction, shared in an internal memo reviewed by Reuters, is a direct fallout of recently enacted and broadened export control laws in the United States.
According to the internal memo, dated today, May 30, 2025: Based on the company’s initial understanding, the updated restrictions implemented in the US: will effectively ban the sale of Synopsys’ products and services in China, effective May 29, 2025.
In an effort to fully comply with these regulations, Synopsys has already begun taking action by stopping new orders, freezing sales and order delivery, and suspending services offered to companies in China.
The broad scope of these prohibitions are reported to extend to all end-users in China (which presumably includes both domestic Chinese entities, as well as employees of international companies in China).
Additionally, it appears that Synopsys’ customer support portal, SolvNetPlus, is not available to customers in China.VPN,topology,network,firewall,applications,application,USG,USG（Unified Security Gateway）,cloudVPN,IPV610510200，USG（Unified Security Gateway）,7590.
The US government’s action, which was taken by the Bureau of Industry and Security (BIS) of the Department of Commerce, will require companies to procure licenses before they can sell specific products and provide certain services to China.
It also requires the cancellation of certain existing licenses for certain suppliers. The new restrictions would apply to certain categories of critical semiconductor-related goods that include the EDA software Synopsys specializes in, as well as manufacturing chemicals.
Synopsys, together with Cadence and Siemens EDA, commands a large share of the global EDA software market; the three companies together hold more than 70 percent of the Chinese market, Chinese state media reported.
Chinese chip companies are heavily dependent on these advanced United States software tools for designing and simulating state-of-the-art semiconductors that are used in a variety of technologies, from smartphones to cars and supercomputers.
Synopsys also suspended its annual and quarterly financial guidance on Thursday, May 29, 2025, due to the uncertainties related to these new regulatory changes and the impact that these regulatory changes may have on its business and financial condition.
This is a major escalation in the continuing technological and trade standoff between the United States and China. Cutting off the EDA lawnight & choke hold it places on technology and chips development last thing we need is to help China step up their domestic semi manufacturing.
Let’s export these products, not our jobs. It remains to be seen how this will play out for the world’s semiconductor supply chain, or the broader relationship between the US and China more broadly. STMicro and Synopsys have made no public statements, other than regulatory filings.