eSIM Studios
Synopsys this week received approval from Chinese regulators to complete its $35 billion acquisition of Ansys, removing the final obstacle to closing the deal, which happens July 17. The green light from Beijing follows prior clearances from U.S. and European authorities, but was granted with specific conditions. The combined company — which will retain the Synopsys name — will become a powerhouse offering tools that will span the full design spectrum of both chips and actual devices, which will open a lot of new doors both for Synopsys-Ansys and the industry. However, there may be some ramifications, too.
The new powerhouseSynopsys is primarily known for electronic design automation (EDA) software that enables the design and verification of semiconductor circuits, chips, and multi-chiplet system-in-packages (SiPs). By contrast, Ansys specializes in simulation tools that model how products perform in the real world — electrically, thermally, structurally, and even flui dically — spanning across many industries and applications, including aerospace, automotive, electronics, and industrial.
"High-end simulation capabilities are more important than ever with the acceleration of AI-powered systems, which are silicon-powered and increasingly complex to design and deliver," a spokesperson for Synopsys told Tom's Hardware. "Engineering AI-powered products requires the integration of digital design with multiphysics simulation and analysis. For example, with the rise of multi-die architectures, designers must simulate and analyze thermal, power, and signal integrity interactions across multiple chips within a single package to ensure optimal performance and reliability. At Synopsys (now including Ansys), we are uniquely positioned to deliver comprehensive, integrated simulation and design solutions that empower customers to innovate the next generation of intelligent systems. Simulation remains foundational to our mission of enabling world-changin g innovation."
The combined company will offer tools that span the full design spectrum, from transistor-level chip design (Synopsys) to physical system analysis and simulation (Ansys). As a result, the transaction creates a unified platform for developing complex, multi-domain products like AI processors and servers, aircraft, defense systems, consumer electronics, and vehicles, just to name a few.
Don't miss theseUsing tools from Ansys and Synopsys, engineers can simulate and optimize both semiconductor and system behavior early in the design cycle, reducing time to market and increasing design confidence. From now on, these tools will come from one source, which will increase the appeal of using solutions from the combined company instead of using tools from companies like Altair, Cadence, Dassault Systèmes, or Siemens.
One of the particular strengths of the joint company will be the ability to merge simulation data (Ansys) with AI-accelerated electronic design automation tools (Synopsys), which will open the door for smarter, automated co-design across domains. Designers can now use AI to optimize power, performance, thermal behavior, and reliability of devices holistically, which will simplify and perhaps even shrink the development cycle. For example, when designing an application processor, vertically integrated companies will be able to simulate the whole device well before ma ss production of the chip to get the final device design ready just as soon as they get the actual chip from the fab. Also, this could be particularly important in a world where design technology co-optimization (DTCO) becomes a major factor in the extraction benefits of the latest process technology.
"AI-enabled EDA tools and advanced simulation capabilities truly go hand in hand," the company told us. "Through our strong, 8-year partnership, we have seen first-hand how integrating robust simulation into AI-powered design environments enables engineering teams to manage complexity, catch issues earlier, and accelerate development. This combination allows for continuous co-optimization from silicon to systems, helping customers innovate faster and deliver higher quality solutions across a wide range of industries."
In fact, Synopsys is already working hard to add simulation to its EDA stack, which will be particularly beneficial for multi-chiplet designs, such as data ce nter CPUs and GPUs, or upcoming UCIe-enabled solutions.
"We are fast-tracking the development and delivery of holistic engineering solutions that bring together multiphysics simulation with the full EDA stack, including advanced solutions for multi-die chip packaging," the representative continued. "We expect to deliver our first set of integrated capabilities in the first half of 2026."
Integration of simulation capabilities into the EDA stack will not be the only thing that the new Synopsys will do with the Ansys product portfolio. The company plans to continue evolving Ansys tools to make them more versatile for next-generation challenges.
"We are committed to expanding and building on Ansys's leading portfolio of engineering and simulation solutions," said the spokesperson. "Together as one company, we're uniquely positioned to deliver new, ho listic system design solutions for customers across industries like semiconductors, high-tech, automotive, aerospace, industrial, and more. We'll continue to invest in innovation that advances the capabilities of our combined offerings, so we can better serve our customers across a broad range of industries."
While EDA tools are ubiquitous for chip design, simulation is used across many industries. As a result, Synopsys will tap into Ansys's stronghold in aerospace, automotive, energy, and heavy industry, whereas Ansys gains deeper exposure to electronics and semiconductors as a result of the transaction. Unless specifically prohibited (more on this later), both companies will be able to upsell and bundle solutions, increasing customer stickiness and total contract value.
"Bringing Synopsys and Ansys together creates an industry leader in engineering solutions from silicon to systems and positions us to take on a broader set of opportunities," the representative contin ued. "Together, we are able to serve not only our existing semiconductor and high-tech customers. We can also accelerate innovation across industries like automotive, aerospace, industrial, healthcare, and more."
While Ansys is becoming a part of Synopsys and will be integrated into the company, the Ansys brand will be retained for some time.
"Synopsys is now the company brand, with Ansys positioned as 'part of Synopsys'," the company explained. "We will continue to use the Ansys brand for select products, and we will share more guidance as the integration moves forward. There are no immediate plans to retire the Ansys brand; we will keep leveraging its strong reputation and legacy in simulation to benefit our customers."
There will be pressureThe merger reduces the number of major EDA and engineering simulation players, which may lead to unforeseen results. Cadence (Synopsys's arch rival) will face stronger competition if the integration succeeds, which might trig ger further M&A or ecosystem shifts.
While the transaction might raise antitrust concerns, the deal was okayed by regulators in Europe, the U.S., and the UK. China's antitrust regulator imposed a condition that Synopsys must not turn down any customer requests to extend existing licenses or force bundling. In addition, the U.S. demanded that Synopsys ensure all Ansys and Synopsys tools will be interoperable with competing solutions from rivals, such as Cadence, Dassault, or Siemens.
Because the merged firm will influence critical systems and system design workflows, it could face more scrutiny from governments, especially in the U.S., China, and the EU. As a result, expect export restrictions, national security rules, and cross-border IP management to become even more complex than they are today.
Chinese regulators already created a roadblock for the Cadence and Ansys transaction when, earlier this year, the U.S. government considered limiting access to EDA sof tware for Chinese entities over national security concerns, briefly introducing new export controls before removing them weeks later after China agreed to ease export controls on rare earth metals.
This approval is especially notable given China's past reluctance to sign off on large U.S. tech mergers, such as Qualcomm and NXP in 2018 or Intel and Tower Semiconductor in 2023. However, given unique capabilities that the merged Synopsys-Ansys company is set to provide, it is important for Chinese chip and system designers; thus, China greenlit the deal. This does not mean that the combined firm will not be a part of the geopolitical tensions between the U.S., China, and the EU.
What's next?The merger of Synopsys and Ansys reduces the number of independent players in a critical tech space, which is set to raise competitive and regulatory concerns. As a result, regulatory pressure on the combined company may grow, as the new entity will offer a set of tools that is applicabl e in the semiconductor sector and in other sensitive spaces, such as aerospace or defense.
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