China Conditionally Approves Synopsys-Ansys Merger Amid Global Regulatory Hurdles

China's State Administration for Market Regulation has granted conditional approval for the Synopsys-Ansys merger, a deal under intense global scrutiny. The specifics of China's conditions remain undisclosed, but the MOVE aligns with a broader trend of regulatory caution in cross-border tech acquisitions.

U.S. regulators have already imposed significant divestiture requirements to mitigate monopoly risks. The Federal Trade Commission mandated Synopsys to sell its optical and photonic software tools, while Ansys divested its PowerArtist power analysis tool to Keysight Technologies. These measures aim to preserve competition in niche markets where the combined entity WOULD otherwise dominate.

The merger underscores how semiconductor technology has become a focal point of national strategy and geopolitical tension. Approval processes for tech deals now weigh not just competition concerns, but also security implications and innovation impacts—a reflection of the sector's growing complexity.