On June 12, according to informed sources, the U.S. semiconductor design software company Synopsys has resumed some of its business operations in China, lifting the temporary measures it had implemented earlier this month to comply with new U.S. export restrictions.
Last month, amid escalating tensions between the world’s two largest economies, Washington ordered many companies to stop shipments to China. This led to a temporary halt in the operations of Synopsys, the world’s largest semiconductor design software company, in China. Its SolvNet customer support website was also inaccessible.
As per an internal company memo reviewed by Reuters, Synopsys notified its employees in China on May 30 that it was pausing all services and sales in China and was not accepting new orders to comply with the latest U.S. government export restrictions.
Last week, Synopsys has resumed some of its operations in China, including the sale of certain non-core hardware and intellectual property, aimed at serving its existing customers.
Sources say that the SolvNet website has also been opened for access, but with certain restrictions; the sales of core EDA tools remain suspended. This means that its intellectual property and hardware cannot be put into use, and Synopsys will still not be able to attract new customers.
Following the implementation of restrictions in the U.S., the uncertainty brought to Synopsys’ sales in China. Synopsys has suspended its annual and quarterly performance forecasts.
Synopsys, Cadence, and Siemens EDA have collectively dominated the semiconductor design software market used by chip manufacturers for designing a variety of products from smartphones to computers, automobiles, and more.
According to a report by the official Chinese news agency Xinhua in April, these three companies control over 70% of China’s EDA market.
EDA software is used to compile IP codes and other designs onto hardware. IP refers to codes that companies sell to users for chip design.
Long-term restrictions on Chinese chip design companies’ use of these EDA tools will have a significant impact on China’s chip design industry.
Synopsys had not responded to Reuters’ request for comment as of Thursday.
(Reference: Reuters)