Synopsys is reshaping its software portfolio, phasing out older manufacturing tools as AI chip design becomes its strategic priority.
U.S.-based chip design software company Synopsys is phasing out a suite of legacy semiconductor manufacturing analytics tools as it shifts focus toward higher-margin AI-driven design technologies.
The company has notified more than 10 chipmakers, including Samsung Electronics, SK Hynix, Kioxia and Qorvo, that it will stop developing new versions of its Equipment Engineering System (EES) and Fault Detection and Classification (FDC) software. Existing customers will continue to receive maintenance and support under current agreements.
The EES and FDC platforms help semiconductor fabrication plants monitor production equipment, detect faults, and reduce manufacturing defects that can impact chip yields.
Synopsys said it is retiring certain older manufacturing analytics products that are no longer critical to customers’ production workflows while continuing to invest in newer capabilities. The company did not comment on reports of job cuts linked to the restructuring.
The shift comes as Synopsys expands its AI-focused portfolio following its acquisition of engineering software company Ansys in 2025. Industry sources said the company is redirecting engineering resources from legacy manufacturing software to AI-based chip design solutions.
Some industry observers noted that discontinuing the software could pose maintenance challenges for certain customers. However, several major chipmakers have already developed in-house alternatives. Samsung confirmed the software’s planned retirement and said it expects no impact on production, as compatible replacement systems are already in place.
The move reflects a broader trend in the semiconductor software industry, where EDA vendors are prioritising AI-enabled chip design while manufacturers increasingly develop proprietary software for factory operations.
