New US Rules Shake Up Synopsys' China Business

So get this, Synopsys, you know, the chip design software folks, just pulled back their financial predictions. Like, the day after they put em out there! Wild, right? It's all because of these new export rules the US dropped on China. Basically, it's making it tricky for them to sell their stuff in a huge market like China.

Their stock? Yeah, it dipped a little after hours, and it ended the day down almost 2%. They said they got a letter from the Bureau of Industry and Security – that's a part of the US government – telling them about these new limits on what they can send to China. They're still trying to figure out how all this is gonna mess with their business and their money stuff, which, tbh, sounds like a big headache.

Reuters reported that the US told a bunch of companies to stop shipping things to China without special permission, and they even took back some permissions that were already given out. Companies that make this electronic design software for chips got letters last Friday saying they now need licenses to send anything to customers in China. This includes companies like Cadence, Synopsys, and Siemens EDA.

Siemens said they're gonna work with their customers everywhere to try and deal with these new rules. And Cadence? They told the government they were told about the license thing last Friday too. They're saying these new rules are kinda complicated and they're talking with the folks at BIS to get more clarity, you know, so they can figure out the real impact on their business and how much money they'll make. These new restrictions could totally crank up the tension with Beijing, and it looks like they're trying to control what China can get for important industries.