Siemens to acquire Precision Innovations

Key Takeaways

• Siemens is acquiring Precision Innovations, a company specializing in electronic design automation (EDA) software
• The acquisition will add AI-powered chip planning capabilities to Siemens' EDA portfolio
• Precision Innovations' technology is built on the open-source OpenROAD framework and supports digital design and verification workflows
• The acquisition is expected to close in the third quarter of 2026

Introduction to Siemens' Acquisition

Siemens, a leading technology company, has announced its plans to acquire Precision Innovations, a privately-held electronic design automation software company. This strategic move aims to enhance Siemens' EDA portfolio by incorporating Precision Innovations' AI-powered chip planning capabilities. The acquisition will enable semiconductor teams to optimize power, performance, and area earlier in the system-on-chip (SoC) design process.

Precision Innovations' Technology

Precision Innovations develops EDA software built on the open-source OpenROAD framework, which helps semiconductor teams evaluate design feasibility, reduce design iterations, and assess design options as SoC complexity increases. The company's tools will complement Siemens' existing digital design and verification tools, adding chip planning and design exploration capabilities to the portfolio.

Benefits of the Acquisition

The acquisition is expected to support a digital design flow spanning architecture, implementation, and silicon lifecycle management for SoCs. By combining Precision Innovations' technology with Siemens' EDA portfolio, customers will be able to manage design complexity, reduce development cycles, and improve engineering productivity. The following comparison table highlights the benefits of the acquisition:

Background and Future Plans

Precision Innovations was founded in San Diego in 2019 to address hardware design barriers related to cost, expertise, and uncertainty in access to semiconductor technologies. The company's software is used by semiconductor and technology companies in digital design and verification workflows. The acquisition is subject to customary closing conditions and is expected to close in the third quarter of 2026.

Bottom Line

The acquisition of Precision Innovations by Siemens is a strategic move to enhance its EDA portfolio and provide customers with advanced chip planning and design exploration capabilities. With the combined benefits of both companies' technologies, semiconductor teams will be able to optimize power, performance, and area earlier in the SoC design process, leading to improved engineering productivity and reduced development cycles. As the acquisition is expected to close in the third quarter of 2026, customers can look forward to a more comprehensive digital design flow solution from Siemens.