U.S. chip design company Synopsys intends to discontinue a collection of manufacturing process control software used by semiconductor producers worldwide, according to six sources familiar with the plans. The move aims to redirect resources toward higher-margin areas such as AI-related design tools. In April and May, Synopsys notified more than ten chipmakers, including Samsung Electronics, SK Hynix, Kioxia Holdings, and Qorvo, about the end-of-life decision. This means the firm will cease developing new versions and will only fulfill existing maintenance duties, two sources indicated. The impacted products are the Equipment Engineering System and Fault Detection and Classification tools. These applications function as core automation systems in chip fabrication plants, tracking operations and identifying issues to prevent expensive production errors. The company has already reduced a small number of positions, three sources reported, with one noting that maintenance discussions with customers are expected to conclude by July. A Synopsys spokesperson stated that the firm is ending support for certain older manufacturing analytics products to prioritize its most valuable offerings, without specifying the items. The decision reflects broader shifts in semiconductor software, where providers are emphasizing AI design while some manufacturers develop internal solutions. The spokesperson added that the discontinued tools are legacy diagnostic systems outside critical production paths, yet the company continues investing in related capabilities and will meet all contractual obligations. Synopsys did not confirm any workforce reductions. The EES product originated from Synopsys’s 2021 acquisition of manufacturing solutions from South Korean firm BISTel. Sources indicated the company sought to eliminate support burdens for these services and reassign engineers to profitable AI design work, following its 2025 acquisition of Ansys for $35 billion. Some sources warned of possible yield reductions at chipmakers due to the need for ongoing updates, though others anticipated minimal effects at large facilities. One factor cited was reluctance by clients to share proprietary manufacturing data required for enhancements. Samsung confirmed the end-of-life notice and ongoing talks, stating it has developed alternatives with no expected production impact. SK Hynix offered no comment, while Kioxia and Qorvo did not respond. Synopsys has long supplied software for arranging billions of transistors on chips. In March, it unveiled technology aimed at enabling AI agents to handle many chip creation tasks.
