Synopsys to see China revenue drop 16% YOY amid US export curbs

Synopsys (NASDAQ: SNPS) is feeling the impact of tightened US export controls, which have placed fresh constraints on US semiconductor design software firms selling to Chinese customers. New rules now require providers to obtain export licenses for all sales to Chinese entities, extending beyond advanced chips to a broader swathe of technologies — a move that is curbing the company’s reach in its second-largest market.

In its latest quarterly results, the semiconductor design software reported a -29% year-on-year decline in revenue from China. Analysts expect the pressure to continue, with Visible Alpha consensus pointing to a -16% drop for the full fiscal year, bringing sales from China down to $830 million in 2025. The downturn comes amid reports that Synopsys may suspend services and stop accepting new orders in China while awaiting further clarification on the evolving restrictions.

Still, Synopsys is expected to deliver strong overall growth, with full-year revenue projected to rise +10.5% to $6.8 million, supported by continued momentum across Europe, South Korea and other parts of Asia. The outlook highlights the company’s resilience outside of China, even as geopolitical headwinds weigh on its performance in the region.