China Postpones Approval of $35 Billion Synopsys-Ansys Merger Amid Rising Trade Tensions

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China’s State Administration for Market Regulation (SAMR) has delayed its approval of the $35 billion merger between U.S. software companies Synopsys and Ansys, according to a Financial Times report on Friday. The move comes after U.S. President Donald Trump tightened export controls targeting China’s access to advanced semiconductor design software and other sensitive technologies.

The delay underscores the escalating trade tensions between the world’s two largest economies, even as they reached a tentative trade truce during talks in London earlier this week. The current dispute follows China’s previous curbs on mineral exports, prompting the Trump administration to respond with additional restrictions. These include stricter controls on exports of semiconductor design software — a key area of Synopsys’s business — as well as jet engines and various advanced goods destined for China.

The Synopsys-Ansys merger had reached the final stage of the Chinese regulatory process and was widely expected to receive approval by the end of June. However, U.S. actions in late May banning chip design software sales to China added new complications to the review, according to sources cited by the Financial Times.

Neither Synopsys nor Ansys have publicly commented on the reported delay. Reuters, which also attempted to verify the report, said Synopsys declined to comment, while Ansys and Chinese regulators have not responded to inquiries.

The Trump administration’s latest export controls form part of a broader strategy aimed at limiting China’s access to technologies that could enhance its semiconductor manufacturing capabilities and, potentially, its military strength. Washington has also revoked export licenses previously granted to certain suppliers, significantly tightening restrictions on U.S. technology shipments to China.

In a separate development, the U.S. Federal Trade Commission (FTC) last month required Synopsys and Ansys to divest certain assets to address domestic antitrust concerns related to the merger. Synopsys CEO has previously confirmed that the company has obtained regulatory clearances for the deal in all jurisdictions except China.

The $35 billion merger, if completed, would combine two of the most important players in electronic design automation (EDA) and engineering simulation software — sectors crucial for the development of next-generation semiconductors and complex industrial systems.

Temasek Joins Microsoft, BlackRock, MGX in Major AI Infrastructure Investment Consortium

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Singapore’s state investment firm Temasek has officially joined the AI Infrastructure Partnership (AIP), a major global consortium backed by Microsoft, BlackRock, and MGX, according to presentation slides shared during BlackRock’s investor day on Thursday. The consortium also includes BlackRock’s Global Infrastructure Partners.

AIP, formed in September, aims to invest over $30 billion initially into building the data centers and energy facilities required to support artificial intelligence applications, such as ChatGPT. The partnership ultimately seeks to mobilize up to $100 billion, including debt financing, with a primary focus on projects within the United States.

Temasek’s involvement comes shortly after the Kuwait Investment Authority became the first non-founding sovereign wealth fund to join the group earlier this month. The consortium’s partners also include key AI players like Nvidia and Elon Musk’s xAI.

Ravi Lambah, Temasek’s head of strategic initiatives, commented on the development: “Temasek’s investment in the AI Infrastructure Partnership reflects our focus on the big shifts and trends of the future. AI is potentially the most transformative and impactful technology for all sectors and businesses.”

The financial terms of Temasek’s investment were not disclosed. As of March 31, 2024, Temasek reported a net portfolio value of S$389 billion (approximately $304 billion), according to its official website.

Coinbase to Launch CFTC-Compliant Perpetual Futures Trading in U.S.

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Coinbase announced plans on Thursday to introduce perpetual futures trading in the United States, with the product designed to comply with regulatory standards set by the Commodity Futures Trading Commission (CFTC). The move represents a significant expansion of the crypto exchange’s derivatives offerings as the broader market anticipates lighter regulation and displays renewed investor risk appetite.

“We recently launched first-of-its-kind 24/7 futures trading, and I’m excited to share that we’ll soon be launching CFTC-compliant perpetual futures trading in the U.S. as well,” said Max Branzburg, Coinbase’s vice-president of product, speaking at the State of Crypto Summit in New York.

Perpetual futures are a form of crypto derivatives that allow traders to speculate on token prices without an expiry date. These contracts provide continuous trading access, often with high leverage, and have grown in popularity as fast-moving markets attract both institutional and retail traders seeking to hedge risk, amplify returns, or speculate on price movements without holding the underlying digital assets.

The expansion comes amid heightened competition among crypto exchanges racing to offer complex products that were once limited to sophisticated market participants. Coinbase’s decision to ensure compliance with CFTC regulations may also help position the exchange favorably with U.S. regulators, as the crypto industry continues to face scrutiny from multiple government agencies.