China’s antitrust regulator has reportedly stalled Synopsys’ proposed $35 billion acquisition of Ansys, casting uncertainty over one of the electronic design automation (EDA) sector’s biggest-ever mergers.
The delay, revealed by the Financial Times, follows fresh US export controls imposed on American EDA companies, including Synopsys, Cadence, and Siemens.
According to sources cited in the report, China’s State Administration for Market Regulation (SAMR) was in the final stages of reviewing the merger when the US announced new licensing requirements for all EDA sales to China at the end of May. That policy shift has disrupted the deal’s previously anticipated closure in June, despite conditional clearance from other major jurisdictions.
The U.S. Federal Trade Commission gave its conditional approval to the merger in late May, as reported by RCR Wireless News. The European Commission issued its own approval back in January, according to Reuters.
Synopsys, the world’s largest EDA company, initially expected to complete the transaction in the first half of 2025. On 28th May, Chief Executive Sassine Ghazi told the Financial Times that the company was “actively engaged” with Chinese regulators and still confident about its timeline. However, those remarks were made prior to Washington’s updated rules, which require licences for all sales of EDA tools and IP to Chinese customers.
The agreement between Synopsys and Ansys includes a “drop dead” deadline of 15th January 2026 to finalise the merger. If not closed by then, the deal could collapse entirely.
While the Chinese regulator has not made an official announcement, insiders suggest that approval could still be granted – provided Synopsys offers satisfactory remedies to address Beijing’s antitrust and national security concerns. These may relate to the firm’s relationships with global chipmakers such as NVIDIA and Intel, which rely on its software for advanced semiconductor development.
The broader EDA industry remains dominated by US firms. Market analysis from TrendForce in 2024 showed Synopsys, Cadence, and Siemens commanding a combined 74% share, with Synopsys alone holding 32%.
The stalled approval process highlights how geopolitical developments continue to exert pressure on cross-border technology deals – particularly in strategically sensitive sectors like chip design and EDA.
Synopsys and ANSYS have since released the following statement related to the status of the regulatory approvals for Synopsys’ proposed acquisition of Ansys: “We have already received merger clearance in every jurisdiction other than China based on the merits of our transaction and the significant benefits it is expected to bring to all our stakeholders and the future of technology innovation. We continue to work collaboratively with the State Administration for Market Regulation of China, and we are at an advanced stage in obtaining this final regulatory approval.”
Updated 30th June
