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One of the top 3 chip design software companies in US halts China sales after Trump administration's 'ban letter'
One of the top 3 chip design software companies in US halts China sales after Trump administration's 'ban letter'

Time of India

time2 days ago

  • Business
  • Time of India

One of the top 3 chip design software companies in US halts China sales after Trump administration's 'ban letter'

Synopsys , one of the top three semiconductor design software companies in the US, has reportedly instructed its staff in China to cease all services and sales within the country and to stop accepting new orders. Tired of too many ads? go ad free now This directive, outlined in an internal letter reviewed by news agency Reuters, is in response to latest US export restrictions targeting China. The report said that Synopsys, a large provider of electronic design automation (EDA) software used in chip design, suspended its annual and quarterly forecasts on Thursday (May 26) after receiving notification of the new restrictions from the US Department of Commerce's Bureau of Industry and Security. Soon after the Trump administration 's 'China ban letter', the company sent an internal letter to staff in China on Friday (May 30), stating that the restrictions "broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025." To ensure compliance, Synopsys confirmed that it is blocking all sales and fulfillment in China and pausing new orders pending further clarification. Notably, these measures apply to all customers in China, including employees of global clients operating within China, and Chinese military users worldwide. Synopsys has reportedly disabled Chinese customers' access to its customer support portal, SolvNetPlus. Why this is significant for both US and China The development comes a day after the US government ordered numerous companies to halt product shipments to China without a license and revoked existing licenses for certain suppliers. Tired of too many ads? go ad free now These measures impact critical products, including design software and chemicals essential for semiconductor manufacturing. Synopsys, alongside Cadence and Siemens EDA, controls over 70% of China's EDA market, as per Chinese news agency Xinhua. Restricting Chinese firms' access to these US-made EDA tools is likely to significantly impact the Chinese chip design industry, which heavily relies on such advanced software. Asus ROG Strix Scar 18 (2025) | 10 Features You Need to Know

Chip design software firm Synopsys halts China sales due to new US export curbs
Chip design software firm Synopsys halts China sales due to new US export curbs

Straits Times

time3 days ago

  • Business
  • Straits Times

Chip design software firm Synopsys halts China sales due to new US export curbs

Chinese chip design customers rely heavily on top-of-the-line US software from companies like Synopsys. PHOTO: REUTERS BEIJING - 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. The United States has 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 May 28, citing people familiar with the matter. Products affected include design software and chemicals for semiconductors, they said. Synopsys on May 29 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 May 30 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 US software. Synopsys, Cadence and Siemens's Mentor Graphics control more than 70 per cent 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 May 30 also said that Chinese customers' access to its customer support portal SolvNetPlus had been disabled. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.

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