Chip Software Maker Synopsys Hits a Bump with New China Rules

So, get this... Synopsys, the company that makes that chip design software? They just pulled back their money predictions, like, right after they made them. Yup, just one day! Seems these new rules from the U.S. about selling stuff to China are making things kinda messy for them.

Their stock even dipped a bit after hours, and it was already down almost 2% during the day. They got a letter from the folks at the Bureau of Industry and Security, which basically spilled the beans about these new export rules for China. This all happened after they shared their latest results.

Synopsys said they're trying to figure out what this letter means for their business and how much money they'll make. Reuters heard that the U.S. told a bunch of companies to stop sending certain things to China unless they get a special pass, and they even took away some passes that were already given out.

Companies that make this fancy software for designing microchips also got letters last Friday. They were told they'd need a license to ship to customers in China now. We're talking about companies like Cadence, Synopsys, and Siemens EDA, which is part of Siemens.

Siemens apparently said they'll work with their customers around the world to help deal with these new rules. Cadence also said their letter from the BIS came last Friday too. They mentioned these new rules are pretty complicated and they're talking to the BIS to get more info so they can see how it affects their business and their money.

Seems like these new rules are gonna cause some friction with China. It really looks like the U.S. is trying to stop China from getting stuff they need for some important industries. Idk, it's all a bit wild, right?