Synopsys exits chip fab software to go all-in on AI-driven design
The EDA giant is walking away from manufacturing control software serving Samsung, SK Hynix, and others to chase higher-margin AI chip design tools
Synopsys just told some of the world’s biggest chipmakers that the software running parts of their manufacturing floors is heading for the graveyard. The company notified clients between April and May 2026 that its chip fab manufacturing process control software has reached “end of life,” with only maintenance support continuing going forward.
The affected customer list reads like a who’s who of semiconductor manufacturing: Samsung Electronics, SK Hynix, Kioxia, and Qorvo, among over 10 major clients. In their place, Synopsys is redirecting engineering talent and resources toward AI-driven electronic design automation tools.
The AI pivot in numbers
Back in March 2026, Synopsys unveiled new software specifically built to handle the complexity of AI chip design. Synopsys reported its second quarter FY2026 earnings on May 27, raising its full-year revenue forecast to $9.665 billion, driven by strong AI-related design activity across its customer base.
CEO Sassine Ghazi has pointed to AI-enhanced EDA tools as critical for future revenue growth. The company’s DSO.ai tool, which uses artificial intelligence to optimize chip design workflows, has now achieved over 100 commercial tape-outs—more than 100 chip designs have gone from concept to ready-for-manufacturing using Synopsys’ AI tooling.
A broader corporate transformation
The biggest piece of Synopsys’ recent transformation was the $35 billion acquisition of Ansys, completed in 2025. Ansys brought simulation and analysis capabilities that complement Synopsys’ core EDA business. Synopsys is essentially telling the market that it wants to own the design side of chip creation, not the manufacturing side.
What this means for the semiconductor supply chain and investors
For the chipmakers losing access to Synopsys’ fab software, companies like Samsung and SK Hynix will need to find alternative solutions for their manufacturing process control needs, whether from competitors like Applied Materials, KLA Corporation, or smaller specialized vendors.
Synopsys’ primary rival in EDA, Cadence Design Systems, has been making its own AI-focused moves. With over 100 commercial tape-outs on DSO.ai, Synopsys has a meaningful head start in demonstrating production-ready AI capabilities.