Latest news with #BureauOfIndustryAndSecurity
South China Morning Post
3 days ago
- Business
- South China Morning Post
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. Advertisement 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'. Advertisement To ensure compliance, Synopsys said it was blocking sales and fulfilment in China and halting new orders until it received further clarification.
Yahoo
4 days ago
- Business
- Yahoo
Exclusive-Synopsys halts China sales due to US export restrictions, internal memo shows
By Liam Mo and Brenda Goh BEIJING (Reuters) -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 U.S. export restrictions, according to an internal letter reviewed by Reuters. The U.S. has ordered a broad swathe of companies to stop shipping goods to China without a license and revoked licenses 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 U.S. 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." To ensure compliance, Synopsys said it was blocking sales and fulfillment in China and halting new orders until it receives further clarification. The measures affect all customers in China, including employees of global customers working at sites in China and Chinese military users wherever they are located, the letter added. The steps Synopsys is taking in light of the new restrictions have not been previously reported. Synopsys did not immediately reply to a request for comment. Alongside Cadence and Siemens EDA, Synopsys is among the top three companies that dominate electronic design automation (EDA) software that chipmakers can use to design semiconductors used in everything from smartphones to computers and cars. Restricting Chinese firms' access to EDA tools would be a big blow to the industry as Chinese chip design customers heavily rely on top-of-the-line U.S. software. Synopsys, Cadence and Siemens's Mentor Graphics control more than 70% of China's EDA market, Chinese state news agency Xinhua reported in April. Chinese companies that have said they use Synopsys and Cadence software include design firm Brite Semiconductor, Zhuhai Jieli and semiconductor IP portfolio provider VeriSilicon. The letter sent to staff in China on Friday also said that Chinese customers' access to its customer support portal SolvNetPlus had been disabled.
Reuters
4 days ago
- Business
- Reuters
Exclusive: Synopsys halts China sales due to US export restrictions, internal memo shows
BEIJING, May 30 (Reuters) - Semiconductor design software firm Synopsys (SNPS.O), opens new tab has told staff in China to halt services and sales in the country and stop taking new orders to comply with new U.S. export restrictions, according to an internal letter reviewed by Reuters. The U.S. has ordered a broad swathe of companies to stop shipping goods to China without a license and revoked licenses 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 U.S. 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." To ensure compliance, Synopsys said it was blocking sales and fulfillment in China and halting new orders until it receives further clarification. The measures affect all customers in China, including employees of global customers working at sites in China and Chinese military users wherever they are located, the letter added. The steps Synopsys is taking in light of the new restrictions have not been previously reported. Synopsys did not immediately reply to a request for comment. Alongside Cadence (CDNS.O), opens new tab and Siemens EDA, Synopsys is among the top three companies that dominate electronic design automation (EDA) software that chipmakers can use to design semiconductors used in everything from smartphones to computers and cars. Restricting Chinese firms' access to EDA tools would be a big blow to the industry as Chinese chip design customers heavily rely on top-of-the-line U.S. software. Synopsys, Cadence and Siemens's Mentor Graphics control more than 70% of China's EDA market, Chinese state news agency Xinhua reported in April. Chinese companies that have said they use Synopsys and Cadence software include design firm Brite Semiconductor, Zhuhai Jieli and semiconductor IP portfolio provider VeriSilicon. The letter sent to staff in China on Friday also said that Chinese customers' access to its customer support portal SolvNetPlus had been disabled.
Reuters
4 days ago
- Business
- Reuters
US terminal operator warns its ethane, butane exports to China could fall
May 29 (Reuters) - Enterprise Products Partners (EPD.N), opens new tab on Thursday said its ethane and butane exports could be hurt by a U.S. Department of Commerce requirement that it apply for a license to export to China. The United States has ordered a broad swathe of companies to stop shipping goods, including ethane and butane, to China without a license and revoked licenses already granted to certain suppliers, Reuters reported on Wednesday. The Bureau of Industry and Security, an agency of the Department of Commerce, informed the company that exports of ethane and butane pose an unacceptable risk of military end-use in China. Ethane and butane, liquids separated from natural gas, are used to make plastics and chemicals and also for heating and cooking. Chinese petrochemical firms use ethane as a feedstock because it is a cheaper alternative than naphtha, while U.S. oil and gas producers need China to buy their natural gas liquids as domestic supply exceeds demand. Enterprise, one of the top U.S. handlers of ethane and butane through its port terminals, said in a regulatory filing it was evaluating its procedures and internal controls and could not determine if it will be able to obtain a license. In 2024, Enterprise's terminal on the Houston Ship Channel loaded about 213,000 barrels per day (bpd) of ethane, of which about 85,000 bpd, or 40%, went to Chinese markets, the company said. Enterprise cautioned that it cannot determine how alternative markets and uses will develop nor the potential impact on ethane and butane prices. It also said it was uncertain how this restriction may indirectly impact U.S. crude oil and natural gas production and prices as natural gas liquids are byproducts of oil and gas drilling. Enterprise also warned that it was currently unable to ascertain whether these restrictions will have a material adverse effect on the company's financial position, operations, and cash flows. U.S. exports of ethane to China rose to a record 227,000 bpd in 2024, according to U.S. Energy Information Administration data, while those of butane rose to a record 26,000 bpd. Those exports have been seen as one way to reduce China's trade surplus with the U.S.
Bloomberg
4 days ago
- Business
- Bloomberg
Synopsys Suspends Guidance After Letter About Export Curbs
Synopsys Inc. suspended its financial guidance for the current quarter and the full fiscal year after receiving word from the US government of new restrictions on exports to China. The company said it got a letter from the Commerce Department's Bureau of Industry and Security informing it of the new curbs on Thursday. 'Synopsys is currently assessing the potential impact of the BIS Letter on its business, operating results and financial condition,' the company said in a statement.
