China’s State Administration for Market Regulation (SAMR) has granted conditional antitrust approval for Synopsys Inc.’s $35 billion acquisition of engineering software giant Ansys. This deal, first announced in January 2024, marks one of the largest technology mergers in recent years and strengthens Synopsys’ position in simulation and design automation.
The SAMR approval is significant given ongoing U.S.–China tensions over tech supply chains and export controls. The Chinese regulator stated that approval was contingent on Synopsys meeting several key obligations to protect fair competition and ensure continued service to Chinese firms.
Conditions Set by Chinese Regulators
To secure the green light, Synopsys has committed to the following terms:
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Continue honoring existing customer contracts in China, including those inherited from Ansys.
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Offer EDA (Electronic Design Automation) products and services under fair, reasonable, and non-discriminatory conditions to Chinese clients.
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Maintain interoperability commitments between Synopsys and Ansys software tools, ensuring seamless integration for users. These agreements must be extended at customer request.
These conditions are designed to mitigate competitive risks and ensure Chinese companies can continue accessing key design tools essential for semiconductor and industrial innovation.
Background on the Merger
Synopsys, a leader in chip design software, is expanding its footprint into broader simulation technologies through this acquisition. Ansys is known for its advanced simulation platforms used in aerospace, automotive, and electronics sectors. The merger aims to create a comprehensive software portfolio that integrates design and multiphysics simulation at scale.
While the deal has cleared U.S. and European regulatory hurdles, China’s approval was considered a potential sticking point due to the sensitive nature of EDA software and growing concerns over access to such tools amid geopolitical tensions.
Now that China has cleared the path with conditions, Synopsys is expected to finalize the acquisition in the coming weeks.
