Synopsys pulled the guidance, citing restrictions of exporting new China

Summaries She withdrew her guidelines for the full fiscal year on Thursday, citing a message she received from the US Department of Commerce on its product sales restrictions in China. Close 1.6 % stock.

This announcement comes one day after the CEO of Synopsys Sassine Ghazi Doubt about a report That the White House told the company, as well as competitors rhythm and SiemensTo stop selling to customers in China. He said he wanted to address speculation.

The company said in a statement on Thursday: “Synopsys is currently evaluating the potential impact of BIS on its work, operating results and financial situation.”

At a phone conference with analysts on Wednesday, Ghazi said that the company witnessed a slowdown in China during which The second financial quarterWhich ended on April 30. About 10 % of Synopsys revenues came 1.6 billion dollars from customers in China.

Competition in China is fierce. Synopsys said that the Chinese government has developed policies that prefer its own companies and support the investment funds while looking to develop the design of independent chips.

“I remember when we started at some time in the 2024 fiscal year to communicate that we see both the cumulative influence of restrictions in China as well as the overall situation inside China caused communication that this slowdown will continue, and that the direct wind has become stronger with the passage of every quarter over the past year, and the year and a half.” The fiscal year 2025 ends in October.

The Industry and Security Office informed the rhythm last week that the company will need a license to export the chips design programs for customers in China, according to Thursday file.

“The message stated that BIS has decided that these shipments are an unacceptable danger to use or convert it into” military use “in China or for the Chinese military final.”

He watches: Synopsys suspends Q3 and FY 2025 instructions a day after it is presented