China Blinks: Synopsys Just Won the $35B Tech Deal Everyone Thought Might Collapse

After months of geopolitical overhang, Synopsys SNPS just cleared one of the last major roadblocks in its $35 billion acquisition of Ansys. China's top antitrust regulator gave the deal the green lightwith a catch. Synopsys must continue renewing contracts with existing customers, a condition likely designed to prevent future service disruptions in the Chinese market. While subtle, the move signals Beijing's willingness to separate business from politicsat least this timegiving Synopsys the go-ahead to finalize a transaction already approved by regulators in the U.S. and Europe.

The deal's timing wasn't without drama. Earlier this year, Synopsys and Cadence were briefly swept into Washington's escalating tech cold war with Beijing, as U.S. officials mulled new export restrictions on advanced chip design software. The proposal was quickly pulled, but it rattled nerves on both sides of the Pacific. Investors had reason to worry: China's market is too big to ignore in the semiconductor world, and delays have tanked deals before. Qualcomm's $44 billion bid for NXP collapsed in 2018, and Intel's $5.4 billion offer for Tower Semiconductor was shelved just last yearboth due to Chinese regulatory silence.

Now that approval is secured, Synopsys could be positioned to cement its dominance in the chip design software spacean area increasingly viewed as critical infrastructure in the global tech race. Investors took notice: SNPS rose as much as 3.7% in premarket trading and is now up roughly 15% year to date. With the Ansys deal nearly over the finish line, Synopsys may be gearing up for its next chapterone that blends engineering software and chip design tools in a way few others can match.