(Reuters) -Synopsys suspended its annual and quarterly forecasts just a day after issuing them, as new U.S. export restrictions on China cast uncertainty over its ability to sell chip design software in the key market. Shares of the company were down marginally in extended trading after closing the session nearly 2% lower. The company said […]
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Synopsys suspends forecasts after US cracks down on China chip software exports
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(Reuters) -Synopsys suspended its annual and quarterly forecasts just a day after issuing them, as new U.S. export restrictions on China cast uncertainty over its ability to sell chip design software in the key market.
Shares of the company were down marginally in extended trading after closing the session nearly 2% lower.
The company said it received a letter from the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce, informing Synopsys of new export restrictions related to China, after reporting results on Wednesday.
“Synopsys is currently assessing the potential impact of the BIS letter on its business, operating results and financial condition,” it said in a statement.
The United States has ordered a broad swathe of companies to stop shipping goods to China without a license and revoked licenses already granted to certain suppliers, Reuters reported on Wednesday, citing three people familiar with the matter.
Firms that supply electronic design automation (EDA) software for semiconductors were sent letters last Friday saying that licenses would now be required to ship to Chinese customers.
The EDA software makers include Cadence, Synopsys and Siemens EDA, a subsidiary of Siemens.
Siemens will work with customers globally to mitigate the impact of the new restrictions, a company spokesperson said late on Wednesday.
Cadence said in a regulatory filing on Thursday that the BIS informed the company about the license requirement last Friday.
“The new requirements are complex, and we are engaging with BIS to obtain further clarification, as we assess the impact on our business and financial results,” Cadence added.
The new restrictions — which are likely to escalate tensions with Beijing — appear aimed at choke points to prevent China from getting products necessary for key sectors.
(Reporting by Juby Babu in Mexico City; additional reporting by Deborah Sophia in Bengaluru; Editing by Alan Barona)