The State Administration for Market Regulation's (SAMR) conditional approval, which came on Monday, would finally allow two major players in the electronic design automation (EDA) industry to combine.

Synopsys stock was falling Monday after the chip-design software company received conditional regulatory approval from China to move forward with its $35 billion acquisition of Ansys.The two companies were awaiting clearance from China’s State Administration for Market Regulation,

In January of 2024, Synopsys entered into an agreement to acquire Ansys to further its integrated silicon-to-systems approach and expand its R&D teams. This comes as a trend to integrate AI, silicon and software defined systems, requiring more compute performance and will likely grow exponentially in the future.