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Synopsys is shifting resources away from manufacturing software
Synopsys (NASDAQ:SNPS) is preparing to discontinue a suite of process control software for semiconductor manufacturing as it redirects investments toward higher-margin artificial intelligence design technologies, according to six sources familiar with the plans.
Sources said the U.S. chip design software company notified more than 10 semiconductor manufacturers in April and May that several manufacturing analysis products had reached “end of life.” Customers reportedly include Samsung Electronics, SK Hynix, Kioxia Holdings and Qorvo.
As part of this action, Synopsys will stop developing new versions of the affected software while continuing to fulfill existing maintenance and contractual support obligations.
Manufacturing tools affected by the decision
The expiring software includes the Equipment Engineering System (EES) and Fault Detection and Classification (FDC) platforms. These applications are used in semiconductor factories to monitor production equipment, identify defects, and prevent manufacturing defects before they impact production yield.
According to two of the sources, the software plays a central role in monitoring manufacturing processes in modern chip manufacturing facilities.
Three sources also said Synopsys has already reduced headcount by several dozen employees, while one source added that discussions with customers about future maintenance agreements are expected to be completed by July.
A Synopsys spokesman confirmed to Reuters that the company is retiring certain legacy manufacturing analytics products to focus investments on higher-value technologies, but did not name the specific software in question.
“While we are discontinuing certain manufacturing analytics products, which are legacy diagnostic tools that are not in our customers’ critical production paths, we continue to invest in new capabilities in this area of our portfolio and in doing so will honor all existing contract and support obligations,” the spokesperson said.
The company declined to comment on whether the changes included job cuts.
AI investments are becoming a priority
The reported strategy reflects broader changes in the semiconductor software industry, where developers are increasingly prioritizing AI-driven chip design tools while manufacturers expand their own in-house software capabilities.
Synopsys entered the manufacturing analytics market in 2021 by acquiring South Korea’s BISTel’s semiconductor manufacturing solutions business. A source said the company has since sought to reduce ongoing support commitments related to legacy software and reallocate engineering resources to higher-margin AI design products following its $35 billion acquisition of engineering software company Ansys in 2025.
Two sources suggested that the discontinuation of the software could ultimately impact production yields as maintenance and software updates are restricted. However, four other sources said they do not expect any significant impact on production by major semiconductor manufacturers.
Customers are increasingly developing proprietary solutions
Sources also said one reason for the decision was semiconductor manufacturers’ growing reluctance to share sensitive production data needed to improve software capabilities.
Samsung confirmed that Synopsys had informed customers about the end-of-life program and said discussions about the software transition were ongoing.
The company added that it has already developed compatible internal alternatives and does not expect “any negative impact on production.”
SK Hynix declined to comment, while Kioxia and Qorvo did not respond to requests for comment.
Synopsys has long been one of the world’s leading providers of electronic design automation software used to develop advanced semiconductor chips. Earlier this year, the company unveiled new technology designed to enable AI agents to automate a growing number of chip design tasks, underscoring its increasing focus on artificial intelligence.
https://finance.yahoo.com/technology/ai/articles/synopsys-phase-chip-manufacturing-software-104129666.html
