Synopsys Halts Sales in China Due to New US Chip Rules
Hey, so check this out. Big changes are happening with a company called Synopsys, which makes software used to design those little chips that are in like, everything - your phone, computer, even your car. Basically, the US government just put out some new rules about what American companies can sell to China, especially stuff for making semiconductors. And yeah, it's a pretty big deal.
Synopsys sent out a letter to their employees in China, and it sounds like they have to stop selling their software and services there, at least for now. They can't even take new orders. This is because the US is ordering companies to get a special OK, a license, before sending certain things to China. They even took back some licenses they already gave out. This affects things like design software and chemicals used for making chips.
Synopsys said they got a letter from the US government about these new rules. Because of this, they even hit pause on their plans for how much money they think they'll make this year and next. The letter they sent to their staff in China on Friday basically said, 'Okay, as we get it right now, these new rules mean we can't sell our stuff in China starting May 29, 2025.' So, to make sure they're following the rules, they're blocking sales and deliveries in China and not taking any new orders until they figure things out more.
This isn't just for some customers either, it's for everyone in China, even if they work for a worldwide company. It also includes anyone using their software for the Chinese military, no matter where they are. These steps Synopsys is taking because of the new rules haven't really been talked about publicly until now. Synopsys didn't want to say anything when asked about it.
You know, Synopsys is one of the top companies that make this kind of software for designing chips, along with Cadence and Siemens. This software is super important for chipmakers to design the semiconductors for all sorts of gadgets. So, if companies in China can't get this software easily, it's a pretty big hit to their chip industry. Chinese companies really rely on this top-notch US software. Apparently, according to Chinese news, Synopsys, Cadence, and Siemens pretty much control most of the market for this software in China.
Some Chinese companies that use Synopsys and Cadence software include places like Brite Semiconductor, Zhuhai Jieli, and VeriSilicon. The letter Synopsys sent to their employees in China also mentioned that theyâve turned off Chinese customersâ access to their online support platform. It's a bit of a mess, tbh. I wonder how this will all play out for the tech world? Maybe some companies will look for other options, like finding freelance help for certain design tasks? Who knows what's next.
