China: State Administration for Market Regulation approved Synopsys' acquisition of equity in Ansigma Technologies subject to commitments

On 14 July 2025, the State Administration for Market Regulation (SAMR) approved the acquisition of Ansys by Synopsys based on restrictive conditions. Synopsys, a US-based EDA and design IP provider, sought to acquire Ansys, a simulation and analysis software firm, through a cash-and-stock deal. The transaction would consolidate their overlapping operations in optical and photonic software, where combined market shares reach 65–70%. It would also consolidate their operations in RTL power analysis software to a market share of 70-75% globally and 35-40% within China. Similarly, it would grant them a transistor-level power integrity analysis global market share of 45-50%, a global power device analysis market share of 45-50%, and a post layout electromagnetic extraction and analysis software global market share of 70-75%. SAMR identified concerns in both horizontal and adjacent markets. In horizontal overlaps, the merger would eliminate close competitors, raising market concentration significantly. For adjacent markets, the combined entity could restrict interoperability between Ansys’ EDA tools and rivals’ products or engage in bundling practices. To address these concerns, SAMR imposed remedies requiring Synopsys to divest its optical and photonic simulation business and Ansys’ power analysis software operations. The merged entity must also honour existing customer contracts, avoid discriminatory pricing, and maintain interoperability with third-party EDA tools. They may not bundle Ansys and Synopsys products. These conditions will remain in force for ten years. Failure to comply may result in penalties under the Anti-Monopoly Law.