BUSINESS

China Approves Synopsys–Ansys Merger With Eight Conditions Amid Post-Sanctions Rebound

Published: Jul. 15, 2025 5:42 a.m. GMT+8

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Synopsys headquarters in Mountain View, California, on April, 13, 2022. Photo: Bloomberg

After months of regulatory uncertainty and following the easing of U.S. tech export bans, China has conditionally approved Synopsys’s $35 billion acquisition of Ansys, placing strict requirements to curb anti-competitive behavior in sensitive tech markets.

China’s State Administration for Market Regulation (SAMR) announced Monday it would approve the high-profile merger between California-based electronic design automation (EDA) giant Synopsys and simulation software firm Ansys, but only with additional restrictive conditions.

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China approved Synopsys’s $35 billion acquisition of Ansys, imposing eight strict conditions to address competition concerns, including major divestitures and requirements for nondiscriminatory customer treatment.
The merger, signed in January 2024, follows recent easing of U.S. tech export bans, allowing Synopsys, Cadence, and Siemens to resume sales to China.
SAMR retains rights to enforce compliance, referencing similar oversight for Nvidia’s previous Mellanox acquisition.

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Who’s Who

Synopsys: Synopsys, a California-based electronic design automation (EDA) giant, has received conditional approval from China for its $35 billion acquisition of Ansys. China's State Administration for Market Regulation (SAMR) imposed strict requirements to address anti-competitive concerns in global and domestic tech markets, particularly regarding optical software, photonic software, EDA tools, and semiconductor design intellectual property. Synopsys must divest its optics and photonics simulation business and honor existing contracts with Chinese clients.

Ansys: Ansys is a simulation software firm that will become a wholly owned subsidiary of Synopsys after a $35 billion acquisition. China conditionally approved the merger, requiring Ansys to sell off its power analysis software segment to avoid anti-competitive behavior.

Cadence: The article mentions Cadence in the context of US tech export bans to China. In May, the US Commerce Department ordered Cadence, along with Synopsys and Siemens, to halt EDA software exports to China. These restrictions were later lifted in early July, allowing Cadence to resume software and IP sales to Chinese firms.

Siemens: Siemens, along with Synopsys and Cadence, had its EDA software exports to China halted by the U.S. Commerce Department in May. These restrictions, which froze license renewals and blocked updates, were later lifted by early July after U.S. and Chinese trade officials met to ease tensions.

Nvidia: Nvidia is under an antitrust investigation by China's SAMR, launched in December 2024, for allegedly breaching commitments made during its 2020 acquisition of Mellanox. Despite US export controls, Nvidia continues to operate in China, even releasing downgraded AI chips.

Mellanox: Mellanox, acquired by Nvidia in 2020 for $6.9 billion, is now subject to an antitrust investigation by China's SAMR. This probe, initiated in December 2024, stems from alleged breaches of commitments made during the original merger approval, which had included pledges for fair and non-discriminatory product supply to China.

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What Happened When

January 2024：: Synopsys agreed to acquire Ansys for $35 billion via cash and stock, signing the deal to make Ansys a wholly owned subsidiary.

December 2024：: SAMR launched an antitrust investigation into Nvidia over the Mellanox acquisition for allegedly breaching commitments.

May 2025：: U.S. Commerce Department ordered Synopsys, Cadence, and Siemens to halt EDA software exports to China, freezing license renewals and software/IP updates.

May 2025：: At Computex conference, Nvidia CEO Jensen Huang criticized U.S. export restrictions, stating they halved Nvidia’s China market share.

June 2025：: U.S. and Chinese officials met in London, resulting in China pledging lawful review of tech exports and the U.S. indicating it would lift some restrictions.

By early July 2025：: Synopsys, Cadence, and Siemens confirmed the lifting of U.S. export curbs imposed in May 2025, clearing the way for resumed software and IP sales to China.

Monday, July 15, 2025：: China's SAMR announced it had conditionally approved Synopsys's $35 billion acquisition of Ansys, with strict regulatory conditions.

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