China’s antitrust regulator has conditionally approved U.S. tech giant Synopsys’s $35 billion acquisition of rival Ansys, shortly after the Trump administration eased export restrictions on chip design software. The approval clears the final regulatory hurdle for the deal, which had already been approved by authorities in the United States and Europe.
The green light was granted by China’s State Administration for Market Regulation (SAMR) on Monday, marking a swift turnaround after the approval process was paused in May. SAMR resumed its review last Friday and completed it within a day, a move influenced by China’s commerce ministry urging regulators to accelerate the decision, according to sources familiar with the matter.
A Deal Influenced by U.S.-China Trade Dynamics
The fast-tracked approval comes amid broader shifts in U.S.-China trade policy. In late May, the U.S. imposed new restrictions that effectively barred chip design software providers—including Synopsys—from selling to China. However, the policy was quietly rolled back earlier this month, signaling progress in trade negotiations between the world’s two largest economies.
Those negotiations culminated in a new trade agreement finalized in Geneva late last month, which has already begun to influence regulatory and policy decisions on both sides.
Strategic Significance of the Deal
Synopsys, based in Silicon Valley, is a leading provider of electronic design automation (EDA) tools and IP used by major chipmakers like Nvidia and Intel. Ansys, headquartered in Pennsylvania, develops engineering simulation software widely used across sectors such as automotive, aerospace, construction, and healthcare.
The two companies first announced the deal in January 2024, positioning the merger as a strategic alignment that will deliver comprehensive solutions across the silicon-to-systems design spectrum.
“The combination will create the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products,” the companies said in a joint statement.
Conditions Set by Chinese Regulators
SAMR approved the deal with several binding conditions aimed at preserving market fairness in China. These include:
- Divesting overlapping business lines
- Guaranteeing contract renewals for existing Chinese customers after the merger
- Ensuring fair, reasonable, and non-discriminatory access to EDA tools and other software for Chinese companies in terms of pricing and functionality
Synopsys officially agreed to the conditions on July 11, and SAMR warned that non-compliance could result in penalties under China’s anti-monopoly laws.
Closing Timeline
Synopsys confirmed on Monday that it had secured all required regulatory approvals and plans to finalize the acquisition later this week.
With China’s approval now in hand, the landmark merger between Synopsys and Ansys is set to reshape the global software and semiconductor design landscape—while also highlighting how tech policy and trade negotiations continue to evolve in tandem.
