On 13^th June 2025, China has delayed regulatory approval of the USD 35 billion acquisition of Ansys by U.S.-based chip design software firm Synopsys, signaling growing strain in global semiconductor trade relations. The move comes at a time of heightened tension between the U.S. and China over technology access, particularly in the semiconductor industry.

Synopsys, a major player in electronic design automation (EDA) software, announced its plan to acquire Ansys—a leader in engineering simulation software—in January 2024. The merger would create a powerful combination of software tools used to design and test advanced microchips, especially those required for AI, automotive, aerospace, and defense applications. The deal, one of the largest in the history of the semiconductor industry, is subject to regulatory approvals from multiple jurisdictions, including the U.S., EU, and China.

While U.S. and European regulators have been reviewing the deal under standard antitrust procedures, China’s State Administration for Market Regulation (SAMR) has reportedly delayed its review, citing unspecified concerns. This delay is widely interpreted as a response to escalating U.S. restrictions on chip exports to China, particularly advanced AI processors and lithography tools. Beijing's move follows a growing trend of using merger reviews as a geopolitical lever in response to Western export controls.

Experts suggest that Chinese regulators may be concerned about reduced access to essential EDA and simulation tools if the merger results in tighter U.S. control over key technologies. Ansys software is commonly used in critical design processes across industries, and China fears the combined entity could limit software access to Chinese firms, further stifling domestic innovation.

The delay reflects the broader standoff between Washington and Beijing, as the U.S. tightens export restrictions on semiconductors and related technologies in a bid to curb China’s technological rise, particularly in AI and defense sectors. In response, China has slowed down or blocked mergers involving U.S. companies as a form of counterpressure.

Both Synopsys and Ansys have expressed confidence in eventually securing all necessary approvals and completing the deal by early 2025. However, the delay underscores the complex intersection of business, technology, and geopolitics shaping the global semiconductor landscape. As tensions continue, the fate of the Synopsys-Ansys merger may serve as a bellwether for future tech transactions in an era where strategic control over chips has become a defining element of international policy.