German conglomerate Siemens has signed an agreement to acquire American electronic design automation (EDA) software company Precision Innovations Inc.. The move will expand Siemens’ EDA portfolio with artificial intelligence-powered chip planning capabilities aimed at improving system-on-chip (SoC) development.

The acquisition is designed to strengthen Siemens’ ability to help semiconductor companies address growing chip design complexity by enabling earlier optimization of power, performance and area (PPA) within the SoC design process. Financial terms of the transaction were not disclosed.

AI-Driven Planning to Improve SoC Development

Precision Innovations develops EDA software built on the open-source OpenROAD framework. Its technology enables semiconductor teams to assess design feasibility, explore architecture alternatives and reduce costly design iterations early in the development cycle.

By integrating these capabilities into its EDA portfolio, Siemens expects to provide customers with enhanced AI-powered design exploration and feasibility analysis tools. The technologies are intended to complement Siemens’ existing digital design and verification offerings, helping engineering teams make more informed decisions before moving into downstream implementation stages.

The addition is expected to support faster development cycles and accelerate progress toward silicon realization while addressing increasing demands for advanced semiconductor designs.

“With Precision Innovations joining Siemens, we will expand our ability to support customers as they face rapidly increasing SoC complexity and the need to explore new architectures faster and more efficiently,” said Ankur Gupta, executive vice president, IC Portfolio, Siemens EDA, Siemens Digital Industries Software.

He added that integrating Precision Innovations’ technology into the Siemens portfolio could “significantly accelerate time to silicon and improve power, performance and area.”

Strengthening End-to-End Digital Design Flows

Following the transaction, Precision Innovations is expected to become part of Siemens’ Digital Design Creation software portfolio. The company’s capabilities will complement Siemens’ existing digital design and implementation technologies, supporting a broader workflow that spans architecture development, implementation and silicon lifecycle management.

Precision Innovations’ software is already used by leading semiconductor and technology companies, providing design teams with tools to evaluate thousands of potential design options earlier in the process.

“Becoming part of Siemens allows us to scale our technology and bring AI-driven chip planning to a much broader set of semiconductor teams,” said Tom Spyrou, chief executive officer of Precision Innovations.

Expanding Access to Advanced Semiconductor Design

Founded in San Diego in 2019, Precision Innovations was established to help make advanced hardware design more accessible by addressing challenges related to cost, expertise and design uncertainty.

Siemens said the combination will help customers manage rising design complexity, improve engineering productivity and shorten development timelines. The transaction is expected to close during the third quarter of calendar year 2026, subject to customary closing conditions.

21 July 2026