South Korea’s Fair Trade Commission (FTC) has conditionally approved the business combination of U.S. semiconductor software companies Syhocis and Ansys. The approval, announced on the 20th, hinges on the sale of certain assets by both companies to mitigate concerns over market competition.
The FTC’s decision pertains to Syhocis’ acquisition of Ansys for $35 billion, approximately 50 trillion won. Both companies are key software providers to major South Korean tech firms like Samsung Electronics and SK Hynix, offering tools for designing semiconductor chips and related optical products.
The regulatory body raised concerns that the merger could stifle competition in three specific software markets: optical product design, register transmission level power consumption analysis, and photonics. The FTC determined that the combined entity could potentially leverage its dominant market share—ranging from 60% to 100% depending on the market—to implement anti-competitive practices such as price hikes and unfavorable trading terms.
To address these concerns, the FTC mandated asset sales in specific areas. Ansys is required to divest all assets related to its register market software, while Syhocis must sell off all assets linked to its optical and photonics market software.
This decision marks the first application of South Korea’s newly introduced corrective measures system for business combinations, implemented in August of the previous year. This system allows companies involved in mergers to propose remedies to competition concerns. The FTC stated it considered corrective measures submitted by both Syhocis and Ansys, and also consulted with 27 domestic and international companies, including Samsung Electronics, SK Hynix, Apple, Google, and Qualcomm during its review process.
Lee Byung-gun, head of the FTC’s Business Combination Review Bureau, stated that this conditional approval is designed to safeguard competition and prevent potential harm to domestic semiconductor companies like Samsung and SK Hynix, especially amid increasing global competition in AI semiconductors and supply chain realignment.
Prior to South Korea’s decision, authorities in the European Union, the United Kingdom, and Japan had also conditionally approved the merger, also requiring asset disposals. Reviews by competition authorities in the United States, China, Taiwan, and Turkey are still ongoing.
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