U.S.-based Synopsys has announced it will discontinue a suite of manufacturing process control software used by major chipmakers, including some with operations in India, in order to concentrate resources on more lucrative AI design technologies.
- Synopsys ends key fab control software including EES and FDC products
- Shift aligns with growing focus on AI-driven semiconductor design tools
- Major chipmakers like Samsung developing own manufacturing analytics
What happened
Synopsys has decided to discontinue the development and future releases of several legacy semiconductor manufacturing process control software packages. This suite includes the Equipment Engineering System (EES) and Fault Detection and Classification (FDC), which are critical automation tools that monitor production line anomalies to prevent defects at chip fabrication plants.
The company communicated this end-of-life decision in April and May to more than ten major global semiconductor manufacturers, including Samsung Electronics and SK Hynix. Synopsys will fulfill existing maintenance obligations but will transition away from these legacy software offerings, reallocating engineer resources toward higher-margin AI design products.
Why it matters
This move signals a strategic pivot by Synopsys from manufacturing analytics to AI-powered chip design technology, reflecting industry trends where software vendors prioritize AI innovations to capture greater value. Production line software like EES requires constant updates and customer data sharing, which some chipmakers find sensitive, leading them to increasingly build in-house alternatives.
While there may be concerns about impacts on yield performance, major customers such as Samsung have confirmed they've developed compatible substitutes and expect no negative production effects. Synopsys’s shift also comes after its $35 billion acquisition of engineering software leader Ansys in 2025, underscoring a broader investment in AI-enabled design capabilities.
What to watch next
The completion of maintenance agreements with each customer by July will reveal how smoothly chipmakers can transition from Synopsys’s legacy manufacturing software to internally developed or third-party alternatives. Monitoring any changes in semiconductor fabrication yields or production efficiencies will be critical in assessing the impact.
Meanwhile, Synopsys’s continued investment in AI technologies for chip design, including recent new AI agent tools announced in March 2026, will be a focal point for semiconductor companies seeking to leverage advanced automation in the entire chip creation process. The industry's broader shift toward AI-driven design tools could reshape competitive dynamics among software vendors and chipmakers, particularly in India and global markets.