Tech war: China approves Synopsys’ acquisition of Ansys after US lifts EDA ban

China’s antitrust regulator on Monday approved American chip design software giant Synopsys’ US$35 billion acquisition of Ansys, weeks after the administration of US President Donald Trump lifted export controls on electronic design automation (EDA) products to the mainland.

In a statement, the State Administration for Market Regulation (SAMR) said it gave the green light to Synopsys’ deal for Ansys, a computer-aided engineering software vendor, under the condition that the two firms honour their contractual obligations to Chinese clients.

Synopsys and Ansys were also required to not terminate existing agreements or reject any Chinese customer’s request to renew their contracts.

The conditions set by SAMR reflect the importance of EDA technology to China’s semiconductor industry, while sending a sign of easing bilateral tensions after Washington lifted export curbs on the software.

Synopsys, Cadence and Siemens held a combined 82 per cent revenue share in China’s EDA market last year, according to a Morgan Stanley research note in May.

Earlier this month, the three EDA suppliers confirmed that the US Commerce Department had rescinded the export controls, which were implemented in May when the agency’s Bureau of Industry and Security (BIS) notified each of them to halt sales on the mainland.