SNPS · CIK 883241
What Synopsys, Inc. told the SEC could break it.
China runs through much of what Synopsys flagged. U.S. export controls — including a Q3 2025 BIS license requirement on EDA software and technology for parties in China (since rescinded), the Entity List and advanced-packaging restrictions — weighed on its business, with China revenue down 22% in fiscal 2025, while China's national policies and government-backed funds are building independent EDA rivals in a key market. Its revenue is also concentrated in a small number of large customers — one accounted for about 12.6% of fiscal 2024 revenue, and weakness at a major foundry customer hurt fiscal 2025. On the hardware side, its emulation and prototyping products depend on a sole supplier for certain components, reducing its control over availability, quality and pricing.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- Chinese state-backed EDA competition + national policies favoring Chinese semiconductor independencemedium
China has implemented national policies favoring Chinese companies and formed government-backed investment funds to build independent EDA capabilities and compete in semiconductors, threatening Synopsys' position in a key market amid fluid U.S.-China trade/export policy.
“China has implemented national policies favoring Chinese companies and has formed government-backed investment funds as it seeks to build independent EDA capabilities and compete internationally in the semiconductor industry.”
- China export controls — BIS Q3 2025 EDA-software license requirement (ECCN 3D991/3E991), Entity List, ECAD restrictions; China revenue -22%medium
On May 29, 2025 Synopsys received a BIS 'is-informed' letter imposing a license requirement for export/reexport/in-country transfer of EDA software/technology (ECCNs 3D991/3E991) when a party is in China or a Chinese military end user (rescinded July 2, 2025); China export controls (Entity List, ECAD/advanced-packaging restrictions) negatively impacted its business, with China revenue down 22% in fiscal 2025 ex-Ansys.
“BIS imposing a license requirement for the export, reexport, or in-country transfer of EDA software and technology classified under export control classification numbers (ECCNs) 3D991 and 3E991 when a party to the transaction is located in China or is a Chinese “military end user,” wherever located (such restrictions, the Q3 2025 BIS Restrictions).”
Customer concentration
- one customer ~12.6%/13.5% of revenue (FY24/23); small number of large customers; major foundry customer weakness hit FY2025medium
Synopsys depends on a relatively small number of large customers — one customer (with subsidiaries) accounted for 12.6% and 13.5% of consolidated revenue in fiscal 2024 and 2023; weaker-than-expected demand from a major foundry customer negatively impacted fiscal 2025 results, and customer consolidation could increase bargaining power or reduce spending.
“we depend on a relatively small number of large customers for a large portion of our revenues. For example, challenges with a major foundry customer negatively impacted our financial results for fiscal year 2025.”
SEC filing →As of 2025
Sole-source dependency
- dependence on a sole supplier for certain hardware productsmedium
Synopsys' hardware (emulation/prototyping) business faces delays in production and delivery, including from difficulty scaling production capacity/yield and a dependence on a sole supplier for certain hardware products, which reduces its control over product availability, quality and pricing.
“a dependence on a sole supplier for certain hardware products, which may reduce our control over product availability, quality and pricing”
SEC filing →As of 2025
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