"Synopsys is currently assessing the potential impact of the BIS Letter on its business, operating results and financial condition," the company said in a statement on Thursday.
On a conference call with analysts on Wednesday, Ghazi had said the company saw a slowdown in China during its fiscal second quarter, which ended on April 30. Around 10% of Synopsys' $1.6 billion in quarterly revenue came from customers in China.
Competition in China is fierce. Synopsys has said the Chinese government has put in place policies that favor its own companies and has backed investment funds while looking to develop independent chip design know-how.