Tech war: US chip design software firm Synopsys halts China sales
Semiconductor design software firm Synopsys has told staff in China to halt services and sales in the country and stop taking new orders to comply with new US export restrictions, according to an internal letter reviewed by Reuters.
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The US had ordered a broad swathe of companies to
stop shipping goods to China without a licence and revoked licences already granted to certain suppliers, Reuters reported on Wednesday, citing people familiar with the matter.
Products affected include design software and chemicals for semiconductors, they said.
Synopsys on Thursday suspended its annual and quarterly forecasts after it received a letter from the Bureau of Industry and Security of the US Department of Commerce, informing it of new export restrictions related to China.
The internal letter sent to staff in China on Friday said 'based on our initial interpretation, these new restrictions broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025'.
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To ensure compliance, Synopsys said it was blocking sales and fulfilment in China and halting new orders until it received further clarification.
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