[News] Synopsys Reportedly Resumes Limited Sales in China, but Key EDA Tools Remain Suspended

According to a report from Reuters, citing sources, Synopsys has partially resumed services after suspending them earlier this month to comply with new U.S. export restrictions. However, sales of key EDA tools remain suspended, preventing the company from onboarding new customers, as the report notes, citing souces.

The partial restart includes sales of non-core hardware and intellectual property, allowing Synopsys to continue supporting some existing clients, according to sources cited by Reuters. Its SolvNet platform has also reopened, though access remains limited—particularly to certain documents related to EDA software.

Meanwhile, as noted by Mydrivers, the situation with Cadence and Siemens remains unclear for now, but is likely similar.

Impact on China’s Chip Design Industry

Mydrivers points out that Synopsys has revealed its EDA contracts with clients typically span two to three and a half years, with services provided annually and a new license key issued each year. If customers continue using the tools, they receive a new key after the renewal date. This means Chinese chipmakers can continue using Synopsys’ EDA tools at least until their current contracts expire.

However, Mydrivers notes that once those contracts end, Synopsys will no longer provide maintenance or updates. Chinese clients may still use the EDA tools but will need to maintain and update them independently. The same applies to IP—previously downloaded IP can still be used, but no new downloads will be available.

Reuters suggests that prolonged restrictions on Chinese chip design firms’ access to these tools would deal a significant blow to the country’s semiconductor industry.

Synopsys Faces Mounting Pressure from U.S. Export Curbs and China Merger Delays

Reuters notes that Synopsys suspended its annual and quarterly guidance after the U.S. imposed export restrictions, which created uncertainty over its ability to sell chip design software in China.

In addition, with U.S. EDA restrictions still in place, Beijing is reportedly blocking Synopsys’ proposed $35 billion merger with Ansys, according to the Financial Times. Sources say China’s antitrust regulator has delayed approval of the deal between the world’s largest and fourth-largest EDA firms.

Globally, the EDA market is dominated by U.S. players. According to TrendForce, in 2024, Synopsys, Cadence, and Siemens EDA hold 32%, 29%, and 13% of the market, respectively—giving the trio a commanding 74% combined share.

Read more

• [News] China Reportedly Stalls $35B Synopsys-Ansys Merger amid Tightened U.S. EDA Curbs
• [Insights] China’s EDA Self-Sufficiency Tops 10% in 2024 — Will U.S. Crackdown Boost or Block Its Chip Push?

(Photo credit: Synopsys)