Analyst(s): Ray Wang
Publication Date: August 11, 2025
Synopsys has completed its $35 billion acquisition of Ansys, combining EDA leadership with multiphysics simulation expertise. The deal creates a unified silicon-to-systems design platform and expands Synopsys’ TAM to $31 billion.
What is Covered in this Article:
- Synopsys finalizes its $35 billion acquisition of Ansys, expanding into a $31 billion TAM.
- Combination unites EDA leadership with multiphysics simulation capabilities.
- The first integrated toolsets targeting multi-die packaging are expected in H1 FY 2026.
- Deal promises faster, more efficient AI-powered product innovation across industries.
- Financial synergies include projected margin expansion and increased free cash flow.
The News: Synopsys has completed its roughly $35 billion purchase of Ansys, combining its skills in electronic design automation (EDA) and semiconductor IP with Ansys’s strengths in multiphysics simulation and analysis. The deal, first announced in January 2024 and approved by regulators in the US, EU, UK, and China, creates a single engineering platform aimed at speeding up AI-powered product development in areas like semiconductors, automotive, aerospace, and industrial systems.
The combined company now targets a $31 billion total addressable market and plans to launch its first set of joint tools in H1 FY 2026. These will blend multiphysics features into the full EDA stack and add options for advanced multi-die packaging.
Synopsys Wraps Up Ansys Acquisition, Targeting Integrated Design Solutions
Analyst Take: Synopsys’ buyout of Ansys is a major shake-up in the engineering software world. By matching Synopsys’ EDA know-how with Ansys’ leading simulation tech, the new team can offer complete design workflows that link electronics and physics from start to finish. This acquisition is critical for Synopsys as it seeks to build a full-stack EDA solution, enabling multiphysics simulation at both the chip and system levels. Beyond the company’s traditional focus on standalone chip design tools, the deal positions design within the broader context of system functionality, supported by core multiphysics expertise and automotive-specific virtual testing capabilities. Along with a bigger $31 billion market, the deal opens the door to stronger AI-driven optimization, closer integration across domains, and better management of complex systems through their full lifecycle.
Enhanced Silicon-to-Systems Integration
The merger connects Synopsys’ design tools with Ansys’ simulation engines, making it easier to optimize electrical, thermal, and mechanical performance early in the design phase. Tools like RedHawk-SC will now be built into Synopsys’ Fusion Compiler and 3DIC Compiler, letting engineers handle thermal, IR-drop, and stress issues much sooner. This “shift-left” approach cuts down on costly redesigns late in the process. By closing the gap between electrical and mechanical teams, workflows become smoother and more connected. The result is faster time-to-market and more reliable products.
Broadened Industry Reach and Use Cases
Ansys’s strong presence in automotive, aerospace, defense, and industrial sectors gives Synopsys an opening into markets where system-level simulation is essential. These industries depend on tools like computational fluid dynamics (CFD), finite element analysis (FEA), and electromagnetic modeling to test complex designs before production. Folding these capabilities into Synopsys’ EDA lineup allows for cross-domain optimization in high-stakes projects. This opens the door to new growth opportunities in aerospace, automotive, and industrial equipment, potentially expanding Synopsys’ addressable market and business portfolio. This is especially useful for AI-driven systems, where safety, heat control, and electromagnetic performance all need to be addressed together. Over the medium term, this expansion is expected to consolidate Synopsys’ technological leadership and strengthen its position in the semiconductor ecosystem. The deal strengthens Synopsys’ position against rivals like Cadence, Siemens EDA, and niche simulation providers.
Expanded Total Addressable Market
By adding system-level simulation to its EDA and IP business, Synopsys’ total addressable market grows from $19 billion to $31 billion. This gives the company a stronger foothold against competitors like Cadence and Siemens EDA and opens the door to more industries. A broader product lineup makes Synopsys more appealing to customers who want a single solution, from chip design to full system build. It also brings in new revenue streams from automotive, aerospace, and industrial manufacturing, making the business less dependent on any market. The bigger TAM reinforces Synopsys’ position as a one-stop shop for design and simulation.
Financial and Operational Leverage
The acquisition is set to lift profits and cash flow, with Synopsys aiming to pay down debt within two years. Ansys’s 45% adjusted operating margin tops Synopsys’ 40%, giving an instant boost to earnings. The wider product mix should attract customers and create growth opportunities through cross-selling and combined solutions. Synopsys is better equipped to serve its $31 billion market with more scale. This stronger financial position lets the company invest heavily in integration while keeping margins healthy.
What to Watch:
- Impact of expanded industry reach into automotive, aerospace, defense, and industrial sectors on revenue growth.
- The timing and impact of the first integrated solutions slated for H1 FY 2026, especially in multi-die packaging and thermal-aware design.
- Competitive responses from Cadence, Siemens EDA, and niche simulation vendors.
- Adoption rates of AI-driven, cross-domain optimization capabilities among enterprise customers.
See the complete press release on Synopsys’ acquisition of Ansys on the Synopsys website.
Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.
Other insights from Futurum:
Synopsys Q2 FY 2025 Results Show AI-Led Growth, Design IP Surge
Synopsys Strengthens AI and Multi-Die Design Capabilities with Samsung
Synopsys Introduces New HAV Tools to Address Growing SoC Design Complexity
Author Information
Ray Wang is the Research Director for Semiconductors, Supply Chain, and Emerging Technology at Futurum. His coverage focuses on the global semiconductor industry and frontier technologies. He also advises clients on global compute distribution, deployment, and supply chain. In addition to his main coverage and expertise, Wang also specializes in global technology policy, supply chain dynamics, and U.S.-China relations.
He has been quoted or interviewed regularly by leading media outlets across the globe, including CNBC, CNN, MarketWatch, Nikkei Asia, South China Morning Post, Business Insider, Science, Al Jazeera, Fast Company, and TaiwanPlus.
Prior to joining Futurum, Wang worked as an independent semiconductor and technology analyst, advising technology firms and institutional investors on industry development, regulations, and geopolitics. He also held positions at leading consulting firms and think tanks in Washington, D.C., including DGA–Albright Stonebridge Group, the Center for Strategic and International Studies (CSIS), and the Carnegie Endowment for International Peace.
