According to informed sources, the U.S. electronic design automation (EDA) giant Synopsys (SNPS.US) plans to discontinue offering a suite of manufacturing process control software widely used by global semiconductor manufacturers. This move aims to redirect resources toward higher-margin businesses such as artificial intelligence (AI) chip design.
Sources indicate that in April and May of this year, Synopsys notified over ten semiconductor manufacturers, including Samsung Electronics, SK Hynix, Kioxia, and Qorvo (QRVO.US), of an "End of Life" (EOL) plan for the related products. This means Synopsys will no longer release new versions of this software, fulfilling only its existing maintenance obligations.
The affected products reportedly include the Equipment Engineering System (EES) and Fault Detection and Classification (FDC). This suite of automation software acts as the "central nervous system" for semiconductor wafer fabs, monitoring production processes and identifying and warning of anomalies before they evolve into costly defects.
For decades, Synopsys has been a major global supplier of chip design software, its tools used to determine the layout of the billions of transistors inside a chip. In March of this year, the company introduced a new technology, stating it would pave the way for AI agents to take over many tasks in chip design.
This action by Synopsys highlights a shift occurring in the semiconductor software landscape. Software vendors are increasing investment in AI design technologies, while some chipmakers are increasingly inclined to develop their own manufacturing software.
Sources added that Synopsys has already laid off dozens of related employees. Furthermore, the company plans to complete negotiations with various semiconductor manufacturers regarding subsequent maintenance obligations by July.
A Synopsys spokesperson stated in a declaration that the company is discontinuing some legacy manufacturing analysis products to concentrate resources on its highest-value offerings but did not specify which products are involved.
The spokesperson said, "While we are discontinuing some manufacturing analysis products—these are older diagnostic tools that are not critical to our customers' production flows—we will continue to invest in new capabilities within this product portfolio and will fulfill all existing contracts and technical support obligations as we implement this transition." The company declined to comment on whether this adjustment involves layoffs.
According to sources, Synopsys has been seeking to shed support and maintenance obligations related to intellectual property (IP) services to reallocate engineering resources to the more profitable AI design business. In 2025, Synopsys completed its $35 billion acquisition of engineering software company Ansys.
One source indicated that part of the reason for Synopsys's decision is that enhancing EES service capabilities would require chip manufacturers to share highly sensitive manufacturing data. Additionally, some clients, including Samsung Electronics, are developing their own tools, which has weakened the competitiveness of Synopsys's related products.
Furthermore, sources stated that discontinuing this software could lead to a decline in production yields for some chip manufacturers, as the software requires ongoing maintenance, updates, and security patches. However, four other sources said they expect the move will not impact the production of major chipmakers.
A Samsung Electronics spokesperson confirmed the EOL decision for the related Synopsys products and stated that they are actively discussing the product retirement with Synopsys. Regarding potential yield impact, the spokesperson said Samsung has established compatible alternatives, so there will be "no negative impact on production."
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