Synopsys Resumes Limited Services in China Amid U.S. Export Restrictions, Core Tool Sales Still Blocked
Synopsys has partially resumed some services in China after suspending operations earlier this month in response to new U.S. export curbs, according to a source with direct knowledge of the situation. The California-based semiconductor design software provider had halted sales and access to its SolvNet customer support portal to comply with broad U.S. restrictions aimed at limiting technology exports to China.
The source revealed that while Synopsys has restarted sales of non-core hardware and intellectual property (IP) to serve some existing Chinese clients, sales of critical Electronic Design Automation (EDA) tools remain suspended. These essential EDA tools are necessary to fully utilize the company’s IP and hardware products, such as the HAPS and ZeBu hardware-assisted verification systems, which are primarily used for accelerating chip verification.
SolvNet has reopened with limited access, restricting some software-related documents, further impacting Chinese customers’ ability to use Synopsys’ full range of services.
Synopsys, along with Cadence and Siemens EDA, dominates the global EDA market with over 70% market share in China, according to the Chinese state news agency Xinhua. The ongoing restrictions on EDA tool sales pose a significant challenge to Chinese semiconductor design companies, potentially hindering the country’s chipmaking industry.
Following the U.S. export controls, Synopsys suspended its annual and quarterly revenue forecasts, reflecting uncertainty about future sales prospects in China.
The company did not immediately respond to requests for comment.