Synopsys has secured conditional approval from the European Commission for its $35 billion acquisition of simulation software company Ansys. The deal, aimed at merging Synopsys’ semiconductor design expertise with Ansys’ simulation capabilities, promises to enhance solutions for complex chip and system creation. However, the acquisition is still awaiting regulatory approval in the UK and the US.
To address competition concerns, both companies have agreed to divest key business units. Synopsys will sell its Optical Solutions Group to Keysight Technologies, while Ansys will part with its PowerArtist tool, both of which are critical for tech industries like augmented reality and autonomous vehicles. These divestitures are intended to preserve healthy competition in crucial technology markets.
The deal is expected to close by mid-2025, pending final approvals and the completion of the divestments.
The US government has announced new restrictions on exporting AI chips and technology, seeking to safeguard its dominance in AI development while limiting China’s access to advanced computing capabilities. The regulations, unveiled during the final days of President Biden’s administration, impose strict caps on AI chip exports to most countries, with exemptions for close allies such as Japan, the UK, and South Korea. Countries like China, Russia, Iran, and North Korea remain barred from accessing this critical technology.
Commerce Secretary Gina Raimondo emphasised the importance of maintaining US leadership in AI to support national security and economic interests. The regulations, which build on a four-year effort to block China’s acquisition of advanced chips, also close existing loopholes and enforce tighter controls. New limits target advanced graphics processing units (GPUs), essential for training AI models, and introduce worldwide licensing requirements for cutting-edge AI technologies. Major cloud providers like Microsoft and Amazon will face new authorisation processes to establish data centres globally under stringent conditions.
Industry leaders, including Nvidia, have expressed concerns over the broad scope of the rules, warning of potential harm to innovation and market dynamics. Nvidia called the restrictions an “overreach,” while Oracle cautioned that the measures could inadvertently benefit Chinese competitors. Despite this criticism, US officials argue the rules are vital for maintaining a competitive edge, given AI’s transformative potential in sectors like healthcare, cybersecurity, and defence. China’s Commerce Ministry condemned the move, vowing to protect its interests in response to the escalating technology standoff.
Taiwan Semiconductor Manufacturing Company (TSMC) has started producing advanced four-nanometre chips in Arizona, marking a significant achievement for US semiconductor manufacturing. Commerce Secretary Gina Raimondo described the development as a historic first for the nation, with production quality matching TSMC’s output in Taiwan.
TSMC’s Phoenix facility received a $6.6 billion government grant to support chip production, alongside up to $5 billion in low-cost loans. The investment is part of a broader initiative to strengthen domestic chip production under a $52.7 billion programme established in 2022.
The company plans further expansion in Arizona, with a second fab producing two-nanometre chips by 2028 and a third fab by 2030. Raimondo aims for the US to produce 20% of the world’s advanced logic chips by the end of the decade.
Amkor Technology was also awarded $407 million to support a $2 billion semiconductor packaging facility in Arizona. Apple will be a major client, with its chips produced nearby at TSMC’s plant.
Taiwan is optimistic about the limited impact of US President-elect Donald Trump’s proposed tariffs on semiconductor exports, citing the nation’s technological edge in the global chip industry. On Friday, economy Minister Kuo Jyh-huei emphasised that Taiwan’s advanced semiconductor processes, led by industry giant TSMC, maintain an irreplaceable position in the supply chain for major companies like Apple and Nvidia.
Despite Trump’s pledges for sweeping tariffs—10% on global imports and up to 60% on Chinese goods—Taiwanese policymakers acknowledged potential challenges for the island’s export-driven economy. However, Kuo reassured that the chip sector’s resilience lies in its technological leadership, which mitigates the risk of significant disruption.
To adapt to the shifting trade landscape, Taiwan plans to help companies relocate parts of their supply chains to the United States if necessary. The island also aims to deepen cooperation in industries like aerospace and advanced technology by fostering ties with US and Japanese firms. This includes establishing a dedicated office in Japan to bolster collaboration on AI and drone development, Kuo said.
Taiwan’s proactive approach reflects its strategic positioning in global trade and its commitment to maintaining robust economic ties amid evolving US policies.
Nvidia has voiced strong opposition to a reported plan by the Biden administration to impose new restrictions on the export of AI chips, urging the outgoing president to avoid making a decision that could impact the incoming Trump administration. The company warned that such measures would harm the US economy, hinder innovation, and benefit adversaries like China. Nvidia’s Vice President, Ned Finkle, called the policy a “last-minute” move that would leave a legacy of criticism from both US industry and the global community.
The proposed restrictions, as reported by Bloomberg, aim to limit AI chip exports to certain countries, particularly targeting China to prevent the enhancement of its military capabilities. While some nations would face outright bans, the rules would also cap the computing power that can be exported to others. The Biden administration has yet to confirm the details, and requests for comment from the White House and the Commerce Department went unanswered.
Industry groups, including the Information Technology Industry Council, which represents major tech firms like Amazon, Microsoft, and Meta, have expressed concern about the policy. They argue that it would impose arbitrary limitations on US companies’ global competitiveness and risk ceding market leadership to foreign rivals. Nvidia warned that these restrictions could push international markets toward alternative technologies, undermining the US technology sector.
President-elect Donald Trump, who begins his second term on January 20, previously enacted technology export restrictions to China during his first term, citing national security concerns. Nvidia’s statement reflects apprehension about the continuity of US policy on AI chip exports under the new administration.
Malaysia plans to leverage its strategic location and rising investments to establish itself as a hub for energy and semiconductor manufacturing, Prime Minister Anwar Ibrahim and Economy Minister Rafizi Ramli announced Thursday. The country is benefiting from political stability, economic growth, and a strong currency, distinguishing it from regional peers facing uncertainty.
Prime Minister Anwar highlighted Malaysia’s economic rebound last year, driven by significant investments in renewable energy and AI infrastructure. He pointed to a stable ringgit, low inflation, and a leading stock market performance in Southeast Asia. ‘In 2025, we aim to capitalise on our geographical position as a conduit for electricity, talent, and supply chain diversification,’ Anwar said at an economic forum.
Economy Minister Rafizi Ramli revealed plans to produce homegrown graphics processing unit (GPU) chips in response to growing AI and data centre demands. Malaysia, which already accounts for 13% of global semiconductor testing and packaging, is targeting over $100 billion in investments for the sector. The country has attracted major firms like Intel and Infineon, as well as digital investments from Google, further boosting its economy and solidifying its role as a key player in the global semiconductor supply chain.
The UK‘s competition regulator, the Competition and Markets Authority (CMA), announced it may accept remedies proposed by Synopsys and Ansys to address concerns over their $35 billion merger. The deal, announced in January of last year, involves Synopsys acquiring Ansys, a company known for its software used in industries like aerospace and sports equipment manufacturing.
The CMA outlined the proposed remedies, which include the sale of Ansys’ power consumption analysis product for digital chips and Synopsys’ global optics and photonics software business. The regulator has until March 5 to decide whether to accept these remedies, though it can extend the deadline to 6 May.
Synopsys expressed satisfaction with the CMA’s progress and reiterated its commitment to working closely with the authority. The outcome of the regulator’s review could significantly impact the completion of the merger, which aims to enhance the companies’ capabilities in chip design software.
A prominent technology trade group has urged the Biden administration to reconsider a proposed rule that would restrict global access to US-made AI chips, warning that the measure could undermine America’s leadership in the AI sector. The Information Technology Industry Council (ITI), representing major companies like Amazon, Microsoft, and Meta, expressed concerns that the restrictions could unfairly limit US companies’ ability to compete globally while allowing foreign rivals to dominate the market.
The proposed rule, expected to be released as soon as Friday, is part of the Commerce Department’s broader strategy to regulate AI chip exports and prevent misuse, particularly by adversaries like China. The restrictions aim to curb the potential for AI to enhance China’s military capabilities. However, in a letter to Commerce Secretary Gina Raimondo, ITI CEO Jason Oxman criticised the administration’s urgency in finalising the rule, warning of ‘significant adverse consequences’ if implemented hastily. Oxman called for a more measured approach, such as issuing a proposed rule for public feedback rather than enacting an immediate policy.
Industry leaders have been vocal in their opposition, describing the draft rule as overly broad and damaging. The Semiconductor Industry Association raised similar concerns earlier this week, and Oracle’s Executive Vice President Ken Glueck slammed the measure as one of the most disruptive ever proposed for the US tech sector. Glueck argued the rule would impose sweeping regulations on the global commercial cloud industry, stifling innovation and growth.
While the administration has yet to comment on the matter, the growing pushback highlights the tension between safeguarding national security and maintaining US dominance in the rapidly evolving field of AI.
US stock markets climbed to one-week highs on Monday, driven by gains in semiconductor stocks and optimism over AI investments. Reports suggesting that Donald Trump’s incoming administration may adopt a more selective approach to tariffs, rather than broad measures, also helped boost investor confidence. The Dow Jones Industrial Average rose 0.41%, the S&P 500 gained 1.02%, and the Nasdaq Composite surged 1.53%, with automakers and tech stocks leading the rally.
Semiconductor shares saw strong gains after Microsoft announced an $80 billion investment in AI-enabled data centres, while Foxconn posted better-than-expected quarterly revenue. Nvidia climbed 3.5%, AMD gained 2.8%, and Micron Technology surged 9.6%, pushing the Philadelphia Semiconductor Index to a two-month high. Meanwhile, the Russell 2000 index, which tracks small-cap companies, added 0.7% as investors weighed economic data and Federal Reserve policy signals.
Investors are closely watching monetary policy developments, with the Federal Reserve expected to provide further guidance on interest rate cuts later in the week. While Trump’s proposals could support corporate earnings and economic growth, concerns remain over potential inflationary pressures. US markets will be closed on January 9 for a national day of mourning in honour of former President Jimmy Carter.
GlobalFoundries and IBM announced on Thursday that they have resolved their legal dispute over alleged contract breaches and misuse of trade secrets. The confidential settlement ended lawsuits in which IBM accused GlobalFoundries of violating a $1.5 billion contract for high-performance chips. At the same time, GlobalFoundries countered with claims that IBM misused its trade secrets during partnerships with Intel and Japan’s Rapidus consortium.
The legal conflict stemmed from GlobalFoundries’ 2015 acquisition of IBM’s semiconductor plants, a deal that was later scrutinised in court. Despite the contentious history, the companies stated that the settlement opens doors for potential collaboration, signalling a move beyond their acrimonious past.
GlobalFoundries, backed by Abu Dhabi’s sovereign wealth fund Mubadala, has also expanded its semiconductor footprint. In November, the US Commerce Department awarded the chipmaker $1.5 billion to bolster New York and Vermont production. This financial boost aligns with the broader US push to strengthen domestic semiconductor manufacturing amid global supply chain challenges.
