China puts $35B semiconductor deal with US on hold

A $35 billion US semiconductor merger is facing delays after China’s antitrust regulator put its approval on hold, days after Washington tightened chip export rules that have deepened trade tensions.

According to The Financial Times, China’s State Administration for Market Regulation (SAMR) has paused its green light for the deal between Ansys, a developer of engineering simulation tools, and Synopsys. 

The deal had already won approval in the United States and Europe, and was in the final stage of SAMR’s review. It was widely expected to clear the last hurdle by the end of June, the sources added.

The delays follow a late May decision by the US government to bar American firms, including Synopsys, from selling certain chip-design software to China. That move has made China’s approvals more difficult, according to FT’s insider source. Still, if Synopsys can address the regulator’s concerns, approval could yet be granted, that source noted.

The deal’s complexity might be adding to the delay

A second source cautioned that the slowdown owes more to the complicated nature of the deal rather than the broader US-China trade dispute. Originally, SAMR’s timetable allowed 180 days for review, yet this process has now stretched beyond that window.

On Synopsys’s earnings call on May 28, chief executive Sassine Ghazi said the company was “working cooperatively and actively negotiating with SAMR to secure China regulatory clearance” and expected to close the deal “in the first half of this year.”

Company filings reveal that the merger agreement carries a “drop dead” date of January 15, 2026. If the deal has not closed by then, either party may walk away without penalty.

The announcement comes as US and Chinese officials try to ease their trade standoff. 

This week, President Donald Trump said both sides had agreed in London to revive a tariff truce first struck in Geneva in May. A senior White House official also suggested that Washington might relax some technology export restrictions if Beijing speeds up shipments of rare earth minerals.

There are already early signs that the US ban may be softened. Synopsys, which had halted all sales to Chinese customers, recently resumed shipments of IP and hardware. However, so-called electronic design automation tools remain off-limits.

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