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With U.S. EDA restrictions still in place, Beijing is reportedly blocking Synopsys’ $35 billion merger with Ansys, according to the Financial Times. Insiders reportedly reveal China’s antitrust regulator has delayed approval of the deal between the world’s largest and fourth-largest EDA giants.
The deal has already cleared major markets, winning conditional approval from the FTC in late May, according to RCR Wireless News. On the other hand, the EU gave its conditional green light back in January, Reuters reported.
The Synopsys-Ansys deal was in its final review stage in China and expected to close this month, but the timeline has been thrown off after Washington banned US EDA firms—like Synopsys—from selling chip design software to China in late May, Financial Times suggests.
On May 28, Synopsys CEO Sassine Ghazi said the company is actively working with China’s regulator and still expect to close the deal in H1 2025, as per the Financial Times. However, that was before the U.S. imposed new rules requiring EDA firms like Cadence, Synopsys, and Siemens to obtain licenses for all sales to China starting in late May.
It is worth noting that the agreement has a January 15, 2026 “drop dead” deadline to seal the deal, as highlighted by the Financial Times.
Turnaround Possible?
However, sources cited by the report also indicate that approval could go ahead if Synopsys, which provides design tools and IP used by chip giants like NVIDIA and Intel, manages to ease Chinese regulators’ concerns with workable remedies.
While this week’s U.S.-China trade talks haven’t touched on easing EDA curbs, signs of a potential shift are emerging. The Financial Times notes a possible softening of the U.S. ban, and EE Times China reports that top American EDA firms have resumed selling some IP and hardware in China—though core design software remains restricted.
Globally, the EDA market is dominated by U.S. players. According to TrendForce, in 2024, Synopsys, Cadence, and Siemens EDA hold 32%, 29%, and 13% of the market respectively—giving the trio a commanding 74% combined share.
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(Photo credit: Synopsys)