Chinese regulators are delaying approval of the $35 billion (£25.8bn) merger of semiconductor tool maker Synopsys and engineering software maker Ansys amidst ongoing trade tensions between the two countries, the Financial Times reported.
The report follows new export controls imposed by the White House in late May that banned sales of chip design software in China, including offerings from Synopsys.
China’s State Administration for Market Regulation (SAMR) initially had a 180-day timeline for approving the deal, which has already been given a green light in the US and the EU, but has now postponed approval, the report said.
Complex deal
SAMR’s review was in the final stage and had been expected by the end of this month, according to the FT‘s report.
One person said the delay occurred because the new US export controls had made the approval process more complex, while another unnamed source said the prolongation was due to the complexity of the deal itself and was not directly connected to the ongoing trade fracas.
The deal could reportedly still be approved if Synopsys is able to submit proposals that address the regulator’s concerns.
On 28 May on Synopsys’ most recent earnings call the company’s chief executive Sassine Ghazi said the firm was working with SAMR to secure China regulatory clearance and that it expected to close the deal in the first half of this year.
Synopsys reportedly received a letter from the US Commerce Department’s Bureau of Industry and Security (BIS) the following day that ordered it to cease all sales and services in China.
“Based on our initial interpretation, these new restrictions broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025,” Synopsys said in an internal memo, according to reports published at the time.
China sales
The US and China held high-level trade talks last week in London and agreed to return to the terms of an earlier temporary deal.
Meanwhile Synopsys, which had earlier stopped all sales to Chinese clients, has restarted sales of intellectual property and hardware in the country while retaining a ban on electronic design automation-related software tools, the FT‘s report said.
Synopsys’ tools are used by companies such as Amazon, Microsoft, Google and Meta to design their own chips for AI acceleration and other purposes, while Ansys makes engineering simulation software used in a range of industries including automotive and defence.
