Synopsys

Synopsys, Inc.

EDA TOOLS🇺🇸 United StatesChokepointSNPS · NASDAQ
synopsys.com

Market Share

~35% EDA market

Key Product

Design Compiler (synthesis), PrimeTime (timing), VCS (simulation), IC Compiler 2

Bottleneck Status

BIS export controls restrict supply to Chinese chip designers

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Synopsys, Inc. (NASDAQ: SNPS) is headquartered in Sunnyvale, California, and is the world's largest EDA company by revenue (~$6 billion in FY2024). Founded in 1986 by Aart de Geus and David Gregory, Synopsys has grown through decades of acquisitions into the dominant provider of digital chip design tools. In 2024, Synopsys announced the acquisition of Ansys (simulation software) for $35 billion, broadening its scope to include systems simulation and multiphysics modeling. Synopsys's core EDA products define the digital chip design flow: Design Compiler and Fusion Compiler handle RTL synthesis (converting hardware description to gate-level logic); IC Compiler 2 and Fusion Design Platform handle physical implementation (floorplanning, placement, routing); PrimeTime is the de facto industry standard for static timing analysis — virtually every advanced chip is timing-signed-off using PrimeTime; VCS and Verdi handle functional simulation and debug. For verification, Synopsys's Verification Continuum platform (including Formality for formal equivalence and ZeBu for hardware emulation) is used by nearly all major chip designers. Synopsys also provides semiconductor IP cores (including DesignWare USB, PCIe, DDR, and HDMI interface IP) that chip designers embed rather than design from scratch — making Synopsys both an EDA vendor and a chip IP competitor to Arm Holdings in specific domains. Export control context: Synopsys's tools were explicitly restricted to Chinese entities in the October 2022 BIS rule update. China has been investing heavily in domestic EDA alternatives (EDA2 consortium, Empyrean Technology, Primarius Technologies) but domestic tools remain 3–5 years behind Cadence/Synopsys at advanced nodes. The EDA export control is considered by analysts to be the most effective single constraint on China's ability to close the semiconductor design gap.

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Export controls touching Synopsys

U.S. Entity List: Huawei / HiSilicon (May 2019)

The U.S. Department of Commerce added Huawei Technologies and its affiliates — including chip design arm HiSilicon — to the Entity List on May 16, 2019, citing national security concerns. The listing requires U.S. suppliers to obtain a license before selling or transferring items subject to the Export Administration Regulations (EAR) to Huawei. A subsequent Foreign Direct Product Rule (FDPR) in 2020 extended the restriction to any chip designed with U.S. software or equipment and manufactured anywhere in the world for Huawei, effectively cutting off TSMC and other foundries from accepting Huawei orders for advanced chips.

6 companies affected

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About this company

QWhat does Synopsys make?

Largest EDA software provider; IC design and verification tools (Design Compiler, PrimeTime, VCS) essential for all advanced chip tapeouts; US export-controlled to Chinese entities

Key products Design Compiler (synthesis), PrimeTime (timing), VCS (simulation), IC Compiler 2

BIS export controls restrict supply to Chinese chip designers