Chinese Regulator Delays $35B Synopsys-Ansys Merger Amid Trade Tensions

The $35 billion merger between U.S. semiconductor software firms Synopsys and Ansys has been delayed by China's State Administration for Market Regulation (SAMR), despite having received approval from U.S. and European regulators. The delay follows President Trump's May decision to tighten export controls on semiconductor design software sales to China, which is believed to have influenced the Chinese regulator's postponement. While the deal had been expected to close by the end of June, the regulatory review process has extended beyond the initial 180-day timeline, partly due to the deal's complexity and escalating U.S.-China trade tensions. Synopsys is actively negotiating with Chinese regulators to address their concerns, and the merger agreement includes a 'drop dead' date of January 15, 2026, by which the deal must close or be abandoned without penalty. Analysts remain optimistic about Synopsys stock, projecting potential upside based on strong buy ratings and favorable valuation metrics, despite the regulatory hurdles. The situation highlights the broader impact of U.S.-China trade disputes on major technology mergers and the semiconductor industry.