U.S. Export Restrictions Hit Synopsys' China Operations
Synopsys, a semiconductor design software firm, has halted services and sales in China due to new U.S. export restrictions. This move impacts all Chinese customers, including those affiliated with global enterprises and the military. Synopsys, Cadence, and Siemens EDA dominate the Chinese EDA market.
Synopsys, a leading semiconductor design software company, has informed its employees in China to cease sales and services following new U.S. export restrictions. The internal communication highlighted U.S. orders that prohibit the shipping of goods without a license, already revoking existing ones.
The restrictions specifically target design software and semiconductor chemicals, compelling Synopsys to suspend annual and quarterly forecasts. The company's decision came after receiving directives from the U.S. Bureau of Industry and Security.
The measures impact both global and Chinese customers, including military users, freezing all new orders and blocking existing sales efforts. Synopsys, Cadence, and Siemens' Mentor Graphics, which dominate over 70% of China's EDA market, now face significant challenges as Chinese firms heavily rely on their technology.
(With inputs from agencies.)
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