On May 22, the U.S. Federal Trade Commission (FTC) announced it will allow Synopsys’ $35 billion acquisition of Ansys to proceed—on the condition that both companies divest certain assets to address antitrust concerns.

To maintain competition in critical software markets, Synopsys will sell its optical and photonic design tools to Keysight Technologies, while Ansys will divest a power analysis product to the same company. These tools are widely used in semiconductor design and simulation technologies that power everything from smartphones to electric vehicles.

The FTC said the remedy will help prevent higher input costs for downstream industries such as automotive and consumer electronics, while preserving innovation in chip design and simulation software.

Synopsys, based in Sunnyvale, California, is a key player in electronic design automation (EDA), competing mainly with Cadence. Ansys, known for its engineering simulation tools, enables product testing and structural analysis before physical prototyping.

This merger, first announced in early 2024, has faced regulatory scrutiny worldwide. Synopsys has already secured approvals in most jurisdictions, including a similar remedy deal with the European Commission in January. The only remaining approval is from Chinese regulators. Synopsys CEO Sassine Ghazi expressed optimism, saying the deal is on track to close by mid-2025.

Industry watchers see the outcome as a significant milestone in semiconductor software consolidation—one that could influence future M&A activity in the AI and chip design space.