A day after releasing its yearly and quarterly projections, Synopsys halted them due to concerns about its capacity to sell semiconductor design software in the crucial market due to recent US export restrictions on China.
The company's shares closed the day over two percent lower, and they were down slightly in extended trading.
After announcing findings, the business claimed it got a letter from the US Department of Commerce's Bureau of Industry and Security (BIS) alerting Synopsys to new export limitations pertaining China.
Last week, companies that provide semiconductor electronic design automation (EDA) software received letters informing them that shipping to Chinese clients would now require licenses.
Cadence, Synopsys, and Siemens EDA, a Siemens subsidiary, are among the companies that produce EDA software.
Recently, Cadence stated that the business was notified by the BIS last week of the license need.
The new limitations seem to be targeted at choke spots to keep China from obtaining goods required for vital industries, which is likely to worsen relations with Beijing.
This week, Synopsys also withdrew its guidance for the entire fiscal year, citing a letter from the US Commerce Department about limitations on its product sales in China.
The announcement was made a day after Sassine Ghazi, the CEO of Synopsys, denied a story that the White House instructed the business and its competitors, Cadence and Siemens, to cease selling to customers in China. He claimed that he had wished to confront the circulating rumors.
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According to Synopsys, the Chinese government has supported investment funds and implemented rules that benefit its own businesses while aiming to establish autonomous chip design expertise.