Core Viewpoint - Synopsys has received all necessary regulatory approvals for its proposed acquisition of Ansys, with the deal expected to close around July 17, 2025, subject to remaining customary closing conditions [1][3]. Regulatory Approval - The acquisition, valued at approximately $35 billion, received approval from China's State Administration for Market Regulation (SAMR) with additional restrictive conditions to mitigate competition concerns in the optical software, photonic software, and certain EDA software markets [1][2]. - SAMR's approval includes requirements for Synopsys to divest its optical and photonic device simulation business and Ansys's power analysis software-related operations, ensuring compliance with existing customer contracts and fair treatment of Chinese clients [1][2]. Financial Terms - Under the acquisition agreement, Ansys shareholders will receive $197.00 in cash and 0.3450 shares of Synopsys common stock for each Ansys share, translating to a total deal value of approximately $35 billion (around 251 billion RMB) based on Synopsys's stock price as of December 21, 2023 [3]. Strategic Implications - The merger aims to combine Synopsys's leading EDA technology with Ansys's simulation and analysis capabilities, enhancing innovation for clients and strengthening Synopsys's strategy from "chip to system" in core EDA and emerging growth sectors such as automotive, aerospace, and industrial manufacturing [3][4]. Market Context - Both companies, listed on NASDAQ, are significant players in the EDA software and design IP markets, with Synopsys being one of the top three EDA firms alongside Siemens and Cadence [2].

Group 1 - Nvidia's CEO Jensen Huang announced plans to apply for permission to resume sales of the H20 GPU chip to the Chinese market, with the U.S. government expected to approve the related licenses soon [2] - The H20 chip, developed based on the older Hopper architecture, is priced between $10,000 and $12,000 and is designed to comply with U.S. chip export control requirements [2] - Despite its reduced performance compared to the H100 chip, the H20 chip remains popular in China, with major companies like ByteDance and Tencent ordering approximately 230,000 units [2] Group 2 - Reports indicate that Nvidia is developing a new AI chip based on the latest Blackwell architecture for the Chinese market, expected to be priced between $6,500 and $8,000 [3] - The market share of Nvidia in China's AI accelerator card market exceeded 85% in 2022, but it is projected that domestic chips will capture one-third of the market share by 2024 [3] - The proportion of imported chips in China's AI server market is expected to decline from approximately 63% in 2024 to about 42% in 2025, with local suppliers gaining ground due to government support [3] Group 3 - Nvidia announced the launch of a new fully compatible RTX PRO graphics card, aimed at digital twin AI applications in smart factories and logistics [4] - Recent easing of U.S.-China tech tensions has led to major chip design software companies resuming services to China, following the U.S. government's cancellation of export restrictions [4] - The U.S. and China are working to implement agreements reached during high-level economic talks, with both sides taking steps to facilitate trade [4] Group 4 - The State Administration for Market Regulation in China approved Synopsys' acquisition of Ansys with conditions that ensure fair treatment of Chinese customers and continuation of existing contracts [5]

Core Viewpoint - The State Administration for Market Regulation has approved the acquisition of Ansys by Synopsys with additional restrictive conditions to prevent anti-competitive effects in the optical software, photonic software, and certain EDA software markets [1][2]. Summary by Sections Acquisition Approval - The acquisition is approved with conditions due to potential anti-competitive effects in global and domestic markets for optical software, photonic software, and parts of the EDA software market [1]. Divestitures Required - Synopsys must divest its entire optical and photonic device simulation business [1]. - Ansys must divest its power analysis software-related business, including R&D, distribution, licensing, and sales [2]. Compliance Obligations - Both companies must adhere to existing customer contracts, including pricing and service level agreements, and cannot terminate or refuse contract renewals for Chinese customers [2]. - There is a prohibition on bundling products from both companies and on discriminating against customers in terms of service levels, pricing, or functionality [2]. Support for Standards and Agreements - Continued support for industry-standard formats related to Ansys and Synopsys EDA products is required [2]. - Existing interoperability agreements must be maintained and renewed upon request from Chinese customers [3]. - Synopsys is required to sign interoperability agreements with third-party EDA vendors upon written request from Chinese customers [3].