Synopsys Reportedly Restarts Partial Services In China Amid US Export Curbs, But Retail Remains Skeptical

Electronic design automation company Synopsys Inc. (SNPS) has partially lifted a service freeze it initiated earlier this month in China, after U.S. export restrictions forced a halt in sales and support. 

According to a Reuters report, Synopsys, a key player in the chip design software market, had suspended customer access to its SolvNet support platform and ceased service delivery in China. 

The move was made amid rising geopolitical friction between the United States and China, which has disrupted technology supply chains and strained corporate operations in the semiconductor sector.

In the last week of May, President Donald Trump's administration directed chip design software companies, including Synopsys, Cadence Design Systems, and Siemens (SIEGY), to cease sales to Chinese entities. 

The report stated that Synopsys has now resumed sales of certain non-core hardware and intellectual property, allowing for the continued support of some of its existing customers.

While Synopsys’ clients can now purchase select non-essential hardware and IP, essential tools used for electronic design automation (EDA) remain unavailable. 

The company’s core EDA tools, which are vital for new chip design projects, are still subject to export restrictions, making it difficult for Synopsys to attract new Chinese customers.

The partial easing of the business curb comes after officials from both the U.S. and China engaged in two days of intense trade negotiations, leading to an agreement on a framework covering tariff rates.

 In light of the export limitations, Synopsys has paused its financial forecasts for both the third quarter and the fiscal year 2025. 

The uncertainty surrounding its ability to conduct business in one of its key international markets has created significant challenges for future planning.

On Stocktwits, retail sentiment around Synopsys remained in ‘bearish’ territory.

Synopsys stock has gained over 3% in 2025 and lost over 15% in the last 12 months.

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