Latest news with #Synopsys
Yahoo
13 minutes ago
- Business
- Yahoo
Synopsys (SNPS) Moves Ahead in Ansys Merger After FTC Divestiture Order
The Federal Trade Commission (FTC) issued a divestiture order on May 28, requiring Synopsys Inc. (NASDAQ:SNPS) and Ansys Inc. (NASDAQ:ANSS) to divest certain assets to resolve antitrust concerns surrounding their $35 billion merger. The FTC stated that the order is necessary to allow the deal to proceed while maintaining competition in software markets critical to the design of semiconductors and optical devices. bleakstar/ Announced in January 2024, Synopsys' acquisition of Ansys is part of its broader strategy to expand leadership in silicon-to-systems design. However, the FTC determined that the two companies compete directly in three key markets, and that the merger could lead to reduced innovation and higher prices for device manufacturers and consumers. After extensive negotiations, the FTC's proposed consent order allows the companies to move forward, provided they divest certain overlapping assets. Synopsys must sell its optical and photonic design software, which supports the simulation of components like LEDs, lenses, and fiber optics. Ansys is required to divest PowerArtist, a tool used for power optimization in chip design. These assets will be sold to Keysight Technologies (NYSE:KEYS). The companies must complete the divestitures within 10 days of Synopsys closing the acquisition. Both firms have already made progress in addressing regulatory concerns. On its quarterly earnings call on May 28, Synopsys reported receiving merger clearances in all jurisdictions except China. Synopsys provides end-to-end solutions for silicon-to-systems design, including EDA software, silicon IP, and system verification and validation. While we acknowledge the potential of SNPS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNPS and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
South China Morning Post
3 hours ago
- Business
- South China Morning Post
Tech war: US chip design software firm Synopsys halts China sales
Semiconductor design software firm Synopsys has told staff in China to halt services and sales in the country and stop taking new orders to comply with new US export restrictions, according to an internal letter reviewed by Reuters. Advertisement The US had ordered a broad swathe of companies to stop shipping goods to China without a licence and revoked licences already granted to certain suppliers, Reuters reported on Wednesday, citing people familiar with the matter. Products affected include design software and chemicals for semiconductors, they said. Synopsys on Thursday suspended its annual and quarterly forecasts after it received a letter from the Bureau of Industry and Security of the US Department of Commerce, informing it of new export restrictions related to China. The internal letter sent to staff in China on Friday said 'based on our initial interpretation, these new restrictions broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025'. Advertisement To ensure compliance, Synopsys said it was blocking sales and fulfilment in China and halting new orders until it received further clarification.
Yahoo
5 hours ago
- Business
- Yahoo
Here's Why Shares in Synopsys Popped Higher Today
The company received some good news on its intended landmark acquisition today. The deal will transform the company's long-term growth prospects. 10 stocks we like better than Synopsys › Shares in semiconductor design products company Synopsys (NASDAQ: SNPS) spiked higher by 5.5% in early trading today before settling back later in the day. The move came after the U.S. Federal Trade Commission (FTC) gave conditional approval for its intended $35 billion acquisition of simulation and analysis software company Ansys (NASDAQ: ANSS). For reference, the European Commission has already approved the acquisition. Synopsys is now awaiting approval from China before potentially closing the deal in the second half of 2026. The Ansys acquisition is a bold move, designed to stay ahead of the trend in its end markets. Synopsys manufactures electronic design automation (EDA) equipment used by semiconductor companies, as well as by a growing list of companies designing chips to embed in their technology. Meanwhile, Ansys makes simulation and analysis software that measures how physical products (including semiconductors) perform. As such, the "new" Synopsys will help companies design chips and products, and also help them analyze how they behave. It's an exciting deal because as semiconductors become increasingly embedded in a broader range of products with ever-increasing complexity, they will require more simulation analysis. The deal has become an integral part of the investment case for buying Synopsys stock, and the conditional FTC approval will likely please investors who purchased the stock in anticipation of the long-term growth opportunities arising from the deal. It's also in line with a larger trend in the industry -- Siemens recently acquired industrial simulation and analysis company Altair. Investors will be hoping that Synopsys completes the Ansys deal in due course. Today's news brought that possibility one large step closer. Before you buy stock in Synopsys, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Synopsys wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Synopsys. The Motley Fool recommends Ansys. The Motley Fool has a disclosure policy. Here's Why Shares in Synopsys Popped Higher Today was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
11 hours ago
- Business
- Yahoo
US planning restrictions on chip design software sales to China
The US government is moving to restrict the sale of chip design software to China, Bloomberg reported, citing sources familiar with the matter. This development is part of a broader policy evaluation by the US to curb China's semiconductor industry ambitions. The focus is on electronic design automation (EDA) software, with potential implications for companies such as Cadence Design Systems, Synopsys, and Siemens. The Commerce Department's Bureau of Industry and Security has reportedly sent letters to some EDA providers, instructing them to halt shipments to Chinese customers. The policy details are not yet public, and the extent of the restrictions remains unclear, the publication said. The publication cited an agency spokesperson as saying: 'The Commerce Department is reviewing exports of strategic significance to China. 'In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending.' However, it could result in a significant impact on business operations in China, where Synopsys and Cadence derive 16% and 12% of their revenue, respectively. The US administration's approach to limiting China's semiconductor industry has been escalating, initially targeting equipment for advanced electronic components and gradually broadening the scope. Software from companies such as Cadence and Synopsys is crucial for designing high-end processors used by firms such as Nvidia and Apple, as well as simpler components for power regulation. The US has also aimed to prevent the sale of advanced semiconductors to China, with Nvidia being a primary target of export controls. Nvidia's chips are essential for training artificial intelligence models. The Trump administration banned Nvidia from selling its H20 chips to Chinese customers, marking the third round of restrictions since 2022. US export controls have become a contentious issue in trade negotiations between Washington and Beijing. Chinese officials argued that US restrictions, along with efforts to discourage allies from using Huawei Technologies' Ascend chip, contradict recent discussions in Geneva aimed at easing broader trade tensions initiated by President Donald Trump. "US planning restrictions on chip design software sales to China" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Time of India
13 hours ago
- Business
- Time of India
One of the top 3 chip design software companies in US halts China sales after Trump administration's 'ban letter'
Synopsys , one of the top three semiconductor design software companies in the US, has reportedly instructed its staff in China to cease all services and sales within the country and to stop accepting new orders. Tired of too many ads? go ad free now This directive, outlined in an internal letter reviewed by news agency Reuters, is in response to latest US export restrictions targeting China. The report said that Synopsys, a large provider of electronic design automation (EDA) software used in chip design, suspended its annual and quarterly forecasts on Thursday (May 26) after receiving notification of the new restrictions from the US Department of Commerce's Bureau of Industry and Security. Soon after the Trump administration 's 'China ban letter', the company sent an internal letter to staff in China on Friday (May 30), stating that the restrictions "broadly prohibit the sales of our products and services in China and are effective as of May 29, 2025." To ensure compliance, Synopsys confirmed that it is blocking all sales and fulfillment in China and pausing new orders pending further clarification. Notably, these measures apply to all customers in China, including employees of global clients operating within China, and Chinese military users worldwide. Synopsys has reportedly disabled Chinese customers' access to its customer support portal, SolvNetPlus. Why this is significant for both US and China The development comes a day after the US government ordered numerous companies to halt product shipments to China without a license and revoked existing licenses for certain suppliers. Tired of too many ads? go ad free now These measures impact critical products, including design software and chemicals essential for semiconductor manufacturing. Synopsys, alongside Cadence and Siemens EDA, controls over 70% of China's EDA market, as per Chinese news agency Xinhua. Restricting Chinese firms' access to these US-made EDA tools is likely to significantly impact the Chinese chip design industry, which heavily relies on such advanced software. Asus ROG Strix Scar 18 (2025) | 10 Features You Need to Know
