According to an internal memo reviewed by Reuters, US semiconductor design software company Synopsys notified its Chinese employees on Friday (May 30th) to suspend all services and sales in China and stop accepting new orders to comply with the latest US government export restrictions.
Washington had requested several companies not to ship to China without permission and revoke previously issued export licenses to some suppliers, as reported by Reuters earlier this week. The affected products include design software and chemicals for semiconductors.
Synopsys announced on Thursday that it would suspend issuing annual and quarterly forecasts due to new export restrictions imposed on China by the Bureau of Industry and Security of the US Department of Commerce.
In the internal memo to Chinese employees on Friday, the company wrote, “Based on our initial interpretation, these new restrictions effectively prohibit us from selling products and providing services in China, effective May 29, 2025.”
Synopsys stated that to ensure compliance with regulations, it will completely block the sales and shipment processes within China and suspend all new orders until further instructions are received.
The memo pointed out that this measure will affect all Chinese customers, including employees of multinational enterprises operating in China and users from the Chinese Communist Party military.
This is the first time that the public has learned of the specific actions taken by Synopsys in response to the new US ban.
Synopsys declined to comment on the matter.
Synopsys, along with Cadence and Siemens EDA (formerly Mentor Graphics), are listed as the top three global electronic design automation (EDA) software providers, offering semiconductor design tools for a variety of applications from smartphones to computers, and cars.
For Chinese companies, losing access to top EDA tools from the US will have a significant impact on the local chip design industry. According to an April report by the Chinese state media Xinhua News Agency, Synopsys, Cadence, and Mentor Graphics together hold over 70% of the market share in China’s EDA market.
Known Chinese companies using Synopsys and Cadence software include companies like VeriSilicon, Brite Semiconductor in Shanghai, and Jieli in Zhuhai.
The internal memo sent to Chinese employees also mentioned that Synopsys had closed access to its technical support platform SolvNetPlus for Chinese customers.