The Software That Controls Fabs Retires: A Dramatic Shift by Synopsys
The growing centrality of artificial intelligence in semiconductor design is changing the priorities of leading EDA (Electronic Design Automation) software suppliers. Synopsys has reportedly decided to stop the development of part of its offering aimed at controlling production processes in chip factories, instead focusing manpower and investments on AI technologies dedicated to integrated circuit design.
According to reports by Reuters, between April and May, the U.S. company notified over ten semiconductor manufacturers, including Samsung Electronics, SK Hynix, Kioxia, and Qorvo, of its decision to terminate the lifecycle ('end of life') of certain software tools. This choice implies that no new versions of the products will be released, while the terms of maintenance and support outlined in existing contracts will remain in effect. Negotiations with customers to finalize the last details are expected to conclude by July.
The products involved would be the Equipment Engineering System (EES) and the Fault Detection and Classification (FDC) package, two solutions used to monitor the real-time operations of equipment in manufacturing plants. These tools allow for the detection of anomalies and malfunctions before they can lead to production defects and low yields.
When asked by Reuters, Synopsys did not explicitly confirm the names of the affected products, but stated that it is indeed stopping its commitment to less central diagnostic tools in customers' production workflows. The company also reiterated that it will continue to invest in production technologies and uphold all existing contractual commitments.
The reasons behind this decision are primarily economic and strategic. Sources indicate that Synopsys intends to free engineers currently engaged in maintenance and support activities to allocate them to the development of AI-assisted design solutions, a sector characterized by significantly higher margins. The company has already reduced the staff involved in these products by laying off several dozen employees.
This strategy aligns with the company's transformation path, accelerated following the completion of the acquisition of Ansys for about $35 billion in 2025. It is worth noting that not long ago, the company benefited from a $2 billion investment from NVIDIA.
Competitive factors are also believed to be at the root of this choice. The evolution of EES software would require manufacturers to share extremely sensitive data related to their production processes, while some large customers, including Samsung, are developing proprietary platforms to perform the same functions, thereby reducing the appeal of the solutions offered by Synopsys.
Opinions on the potential operational consequences are divergent. Two of the sources consulted believe that the gradual cessation of updates could, over time, negatively impact the production yields of some plants, as this type of software requires continuous updates and corrections. On the other hand, four other sources consider it unlikely that there will be any significant effect on the major companies in the sector.
Samsung confirmed Synopsys's decision, specifying that it is already working with the supplier to manage the transition. According to the South Korean manufacturer, compatible alternative solutions are already available and no negative impacts on production are expected. SK Hynix preferred not to comment, while Kioxia and Qorvo did not issue any statements.