• Synopsys has halted all services and sales in China following U.S. export restrictions.
• The U.S. revoked licenses, impacting critical products including EDA software.
• More than 70% of China's EDA market is controlled by Synopsys, Cadence, and Siemens EDA.
• The restrictions also affect Chinese military customers and global firms operating in China.
• Synopsys has disabled access to its customer support portal for Chinese users.

Synopsys, a leading semiconductor design software company, has instructed its staff in China to cease all services and sales within the country and stop taking new orders due to new U.S. export restrictions. This decision, outlined in an internal memo reviewed by Reuters, became effective May 29, 2025. To comply, Synopsys reported it would block all sales and fulfilment in China until further clarification is provided, impacting all customers, including international firms operating in China and Chinese military users, according to Reuters.

The U.S. government had mandated numerous companies to halt shipments to China without a license and revoked previously granted licenses for certain suppliers. This sweeping measure affects various critical products including design software and chemicals essential for semiconductor manufacturing. Following this directive, Synopsys also suspended its annual and quarterly forecasts after receiving formal notification from the Bureau of Industry and Security, as outlined in communications from both India Times and South China Morning Post.

The ramifications of these restrictions are significant, considering that Synopsys, alongside Cadence and Siemens EDA, collectively controls over 70% of China's electronic design automation (EDA) market. Restricting access to EDA tools represents a major setback for Chinese chipmakers, who heavily rely on U.S. software for semiconductor design. This situation was further elaborated by Reuters and South China Morning Post.

In an additional measure to comply with these restrictions, Synopsys has disabled access to its customer support portal, SolvNetPlus, for Chinese users. This directive highlights the extensive impact these U.S. regulations have on international cooperation in the tech sector and underscores the ongoing tensions between the U.S. and China regarding technology and intellectual property, according to India Times and South China Morning Post.