Key facts
- Synopsys is discontinuing its Equipment Engineering System (EES) and Fault Detection and Classification (FDC) software.
- The move aims to reallocate resources towards higher-margin offerings, particularly AI design technologies.
- More than 10 chipmakers, including Samsung Electronics and SK Hynix, have been informed of the 'end of life' decision.
- Synopsys has laid off some staff and is negotiating maintenance obligations with affected customers.
- Customers like Samsung have developed alternatives and do not anticipate production impacts.
Synopsys, a major U.S. chip design company, plans to cease offering a suite of manufacturing process control software, including the Equipment Engineering System (EES) and Fault Detection and Classification (FDC) tools, according to sources familiar with the matter. This strategic shift aims to redirect resources towards more profitable areas, particularly AI design technologies, and follows Synopsys's acquisition of BISTel's semiconductor manufacturing solutions in 2021 and its $35 billion purchase of Ansys in 2025.
The company has informed over ten chipmakers, such as Samsung Electronics, SK Hynix, Kioxia Holdings Corp, and Qorvo Inc, about the 'end of life' status for these products. Synopsys has also reportedly laid off a few dozen staff and is in the process of finalizing maintenance obligations with its customers. A Synopsys spokesperson confirmed the discontinuation of certain older diagnostic manufacturing analytics products, emphasizing that they are not critical to customers' production paths and that the company continues to honor existing contractual and support obligations.
While some sources suggested the software's removal could risk declines in production yields, several others, including Samsung, indicated that major chipmakers do not expect an impact. Samsung confirmed active discussions with Synopsys regarding the product's sunset and stated it has established compatible alternatives. The decision also stems partly from the need for chipmakers to share sensitive manufacturing data to enhance the software, and some clients, like Samsung, are developing their own in-house tools, diminishing the competitiveness of Synopsys' offerings.
Synopsys, a long-standing supplier of software for chip design, has recently focused on AI advancements, introducing technology in March designed to enable AI agents in chip creation. This move reflects a broader trend in the semiconductor software industry, with vendors increasingly investing in AI design and some chipmakers opting to develop manufacturing software internally.