On May 29, 2025, U.S.-based semiconductor design software giant Synopsys announced it had received a notification from the U.S. Department of Commerce's Bureau of Industry and Security (BIS) outlining new export restrictions targeting China. One day later, CEO Sassine Ghazi issued an internal letter to employees, providing further details and confirming immediate compliance measures.

"Based on our initial interpretation, these new restrictions broadly prohibit the sale of our products and services in China, effective May 29," Ghazi wrote in the letter, seen by Reuters and other media outlets.

To ensure compliance, Synopsys has implemented a series of actions:

 ● Sales and product deliveries in China have been halted.

 ● New orders from Chinese customers have been blocked.

 ● Access to the company's customer support portal, SolvNetPlus, has been disabled for all users in China.

These measures affect all customers in China, including employees of global clients working at facilities in China and so-called "military end users" located anywhere in the world.

Ghazi acknowledged the disruption and expressed appreciation for the company's nearly 1,800 employees in China. "We understand these changes are difficult, especially for our colleagues in China. We have an outstanding team there, and I'm grateful for their agility and continued excellence in a dynamic environment," he said. "We are operating for the long term and remain committed to our mission of empowering innovators and advancing human progress."

The new restrictions are part of broader U.S. efforts to tighten control over advanced technologies supplied to China. As previously reported by Reuters, Washington has revoked export licenses and imposed new requirements for a wide range of semiconductor-related goods, including chip design software and critical chemicals.

The move delivers a significant blow to China's chip design sector, which remains heavily dependent on EDA (electronic design automation) software provided by U.S. firms. Together with Cadence and Siemens EDA (formerly Mentor Graphics), Synopsys controls more than 70% of China's EDA market, according to a report by China's Xinhua News Agency.

Major Chinese semiconductor firms, such as Brite Semiconductor, Zhuhai Jieli, and VeriSilicon, have publicly disclosed their reliance on Synopsys and Cadence software for chip design.

Founded in China in 1995, Synopsys has built an extensive local presence, with offices in Beijing, Shanghai, Shenzhen, and other major cities. The company has long emphasized local R&D and talent development as part of its China strategy.

As of now, Synopsys has suspended its financial forecasts and awaits further clarification from U.S. regulators on the scope and duration of the new rules.