The $35 billion acquisition of Ansys by Synopsys has received conditional approval from China's antitrust regulator, a development coinciding with changes in US export restrictions.
Approval After US Policy Changes
China's State Administration for Market Regulation (SAMR) has confirmed conditional approval of the merger between Synopsys and Ansys, which came as the United States eased recent export restrictions on chip design software. The merger was initially announced in January 2024 and had already received clearance from regulators in the US and Europe. However, the review in China was paused in May after the introduction of new restrictions in the US.
Conditions Imposed by SAMR
In its approval, SAMR imposed three main conditions to manage market concentration risks and ensure that Chinese companies are not unfairly disadvantaged. Firstly, the companies must divest business lines where their offerings significantly overlap. Secondly, Chinese customers must be allowed to renew existing contracts under the same terms. Finally, Synopsys is required to continue offering its EDA software to Chinese firms on fair and reasonable terms.
Impact on the Semiconductor and Engineering Software Market
Analysts say that the $35 billion deal reflects the growing intersection of semiconductor design and engineering workflows. This is due to the complexity of modern technologies such as AI and electric vehicles. Synopsys provides essential EDA tools and intellectual property used by leading semiconductor companies like Nvidia and Intel.
The approval of the Synopsys and Ansys merger underscores the importance of cooperation between the US and China in the high-tech sector, particularly amid the evolving international landscape and software requirements in the semiconductor industry.
