Brisk growth in China for chip-design company Synopsys Inc. could be even greater without export restrictions, outgoing Chief Executive Officer Aart de Geus said after the company raised its outlook for revenue and profit this year.
On Wednesday, Synopsys announced quarterly sales and earnings that also beat analysts’ estimates. Sales to China increased around 60% from the previous year, to 20% of the total, according to a Bloomberg Intelligence analysis of data released by the company.
“If there were no restrictions, we could probably sell more to China. But we live up to those restrictions,” de Geus said in a Bloomberg TV interview Thursday.
De Geus said artificial intelligence is sparking demand for complex semiconductor chips that Synopsys helps foundries manufacture.
“It’s one of those wonderful situations where the demand continually exceeds what our customers can deliver,” de Geus said. “I.e. the race is on, and in that race we are key ingredients.”
Synopsys offers software used by chip manufacturers. Demand could grow as chips become more complex in part because the company’s designs incorporate artificial intelligence that learns from prior designs and leads to quicker results, according to Bloomberg Intelligence.
The electronic design automation software provider on Wednesday said its president and chief operating officer, Sassine Ghazi, will take on the CEO roll on Jan. 1. De Geus will transition into the role of executive chair.
Sunnyvale, California-based Synopsis has about 20,000 employees and revenue over the last twelve months of approximately $5.5 billion, the company said in a statement announcing the executive transition.
