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China Approves Synopsys-Ansys Deal, Paving Way for $35B Chip Software Merger

By  |  July 14, 2025

Synopsys Inc. has received the green light from Chinese regulators for its $35 billion acquisition of Ansys Inc., a major step forward that clears the last regulatory obstacle in one of the year’s biggest tech deals.

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    According to Bloomberg, China’s State Administration for Market Regulation granted approval for the merger, with certain stipulations attached. One key condition requires Synopsys to honor all customer contract renewal requests, a move likely aimed at preserving fair competition in the region’s vital semiconductor sector.

    The deal, which is expected to officially close on July 17, had previously secured approvals from regulatory bodies in the United States and Europe. Per Bloomberg, Synopsys said in a statement that the merger will establish a “leader in engineering solutions from silicon to systems,” positioning the combined company to accelerate innovation in AI-driven technologies.

    The Chinese sign-off comes after months of uncertainty tied to U.S.-China trade tensions. Earlier this year, Washington reportedly considered curbing the ability of Synopsys and its rival Cadence Design Systems Inc. to sell chip-design tools to Chinese firms, citing national security concerns. While the U.S. later reversed that stance, the episode underscored the political sensitivity surrounding the semiconductor industry.

    Read more: Synopsys Secures EU Approval for $35 Billion Ansys Acquisition

    Synopsys, based in California, and Ansys, headquartered in Pennsylvania, are both key players in the global software ecosystem that enables chip design and advanced simulation. Despite neither company being based in China, Beijing’s approval was essential because of the country’s outsized role in the global semiconductor supply chain.

    Per Bloomberg, the Chinese review process had faced delays in recent months, reportedly tied to ongoing tensions over U.S. export controls and China’s countermeasures involving rare earth elements. Such geopolitical dynamics have derailed major cross-border tech deals in the past, including Qualcomm’s failed $44 billion acquisition of NXP Semiconductors in 2018 and Intel’s abandoned $5.4 billion deal for Tower Semiconductor in 2023.

    With China’s approval now in hand, Synopsys is poised to finalize its largest-ever acquisition, bolstering its competitive edge as demand grows for integrated software solutions that support next-generation chip and systems development.

    Source: Bloomberg