Siemens has signed an agreement to acquire the U.S. company Precision Innovations. The company develops electronic design automation (EDA) software that helps semiconductor designers plan and optimize system-on-a-chip (SoC) architectures.

Precision Innovations' technology is based on the open-source OpenROAD framework. It makes it possible to assess the feasibility of chip designs early in the development phase, analyze design variants more quickly, and reduce the number of development iterations.

Early Optimization of Performance and Energy Consumption

According to Siemens, the software is designed to help identify conflicts between architecture and design at an early stage. The goal is to optimize the energy efficiency, performance, and area requirements of chips, as well as to shorten the development time to market.

“With the acquisition of Precision Innovations, Siemens is expanding its ability to support customers who are facing rapidly increasing complexity in SoCs and need to test new architectures more quickly and efficiently,” said Ankur Gupta, Executive Vice President, IC Portfolio, Siemens EDA, Siemens Digital Industries Software.

Upon completion of the transaction, Precision Innovations is set to become part of Siemens and complement its existing portfolio in the field of digital chip design and verification. According to the company, this will support end-to-end development processes, from chip architecture through implementation to silicon lifecycle management.

Founded in San Diego in 2019, the company develops AI-powered tools for semiconductor design and, according to the company, is already being used by leading semiconductor and technology companies.

Expected to be completed in the third quarter

The completion of the acquisition is still subject to the customary closing conditions and is expected in the third quarter of 2026. The companies did not disclose details regarding the purchase price.