Electronic design automation (EDA) company Synopsys is reportedly planning to discontinue parts of its semiconductor manufacturing process control software portfolio as it shifts engineering resources towards higher-growth artificial intelligence (AI) design solutions.

According to sources familiar with the matter, the company has informed several leading semiconductor manufacturers that selected manufacturing software products will no longer receive new feature updates. Existing customers will continue to receive maintenance and support in line with their contractual agreements.

The products affected include Equipment Engineering System (EES) and Fault Detection and Classification (FDC) software, which are used by chipmakers to monitor semiconductor fabrication equipment, detect process abnormalities and improve manufacturing yields. These products became part of Synopsys' portfolio following its acquisition of South Korean software company BISTel in 2021.

Sources said Synopsys has notified around 10 major semiconductor manufacturers, including Samsung Electronics, SK hynix, Kioxia and Qorvo, about the planned changes. Discussions with customers regarding ongoing support and maintenance arrangements are expected to continue during July.

The reported move reflects a broader shift across the semiconductor software industry, where companies are increasingly focusing investment on AI-enabled chip design tools rather than traditional manufacturing software. As semiconductor designs become more complex, demand for AI-assisted electronic design automation solutions continues to grow, enabling faster product development and improved design efficiency.

Industry analysts also note that several semiconductor manufacturers have developed proprietary manufacturing software for their fabrication facilities, reducing dependence on third-party process control platforms. This trend has intensified competition in the manufacturing software segment while increasing opportunities in AI-driven design technologies.

Although some customers have expressed concerns that ending development of these software products could affect long-term manufacturing operations, others believe alternative solutions are available to minimise any operational impact. Reports indicate that Samsung Electronics does not expect the changes to significantly affect its production activities.

The reported strategy aligns with Synopsys' broader focus on expanding its artificial intelligence capabilities and strengthening its leadership in electronic design automation. By prioritising AI-powered design solutions, the company aims to address the semiconductor industry's growing demand for more advanced, efficient and intelligent chip development technologies.