Synopsys is seeking partnerships with Chinese AI labs to speed up chip design.

Synopsys, the world's leading maker of electronic design automation software, is pursuing partnerships with Chinese artificial intelligence labs to accelerate chip development, the company said.

The Palo Alto, California-based firm plans to deploy an AI version of its tools with large language model builders in China, navigating Washington's tightening controls on AI and semiconductor exports. The company said it will work within U.S. restrictions rather than around them. Synopsys emphasized compliance in its outreach, signaling that collaboration with Chinese labs will stay inside permitted boundaries.

Synopsys forecasts $11.15 billion in revenue for fiscal 2027. Deals with OpenAI and Amazon drive the company's AI expansion. The forecast reflects growing enterprise adoption of AI-assisted design, and the OpenAI and Amazon contracts contribute to that growth, though Synopsys did not break out specific figures.

Synopsys dominates chip design software, and its AI tools aim to cut the time engineers spend on complex layouts. By linking with Chinese LLM developers, Synopsys could tailor those tools to local design rules and fabrication constraints.

Demand for faster design cycles is rising. Chinese chipmakers have scaled production in recent months, and CXMT and SMIC posted a 620% profit surge. China's chip industry has expanded despite sanctions, creating pressure for quicker design iterations. Synopsys sees that pressure as an opportunity to embed its AI tools more deeply into Chinese supply chains.

Washington has tightened export rules on advanced chips and AI technologies. The company has not named specific Chinese partners. Industry observers expect collaborations with developers of models similar to DeepSeek, which launched 16 AI models in a single month despite U.S. warnings.

Synopsys will need to balance revenue growth with regulatory risk. Any misstep in export compliance could trigger penalties or loss of market access. The firm is betting that AI-driven design efficiency justifies the complexity of operating inside a restricted environment.

For now, Synopsys is making the pitch. Chinese labs will decide based on their own compliance calculus and Washington's next rule change.