Siemens has signed an agreement to acquire Lauterbach, a German provider of embedded software debugging and trace technologies, expanding its electronic design automation capabilities for semiconductor development. The transaction will combine Siemens’ hardware-assisted verification tools with Lauterbach’s software analysis technology to help engineers identify problems earlier in the chip development process.
Headquartered near Munich, Lauterbach develops hardware-assisted debuggers and real-time trace systems used to analyze software running on microprocessors and embedded processor cores.
The company was established in 1979 by brothers Lothar and Stephan Lauterbach.
It has approximately 170 employees and serves more than 1,200 customers worldwide.
Its customers operate across industries including automotive, semiconductors, telecommunications, aerospace, and other technology markets.
Lauterbach generated approximately €60 million in revenue during 2025.
The company’s TRACE32 technology provides tools used to inspect, test, and troubleshoot embedded software running on increasingly complex computing architectures.
These capabilities complement Siemens’ existing electronic design automation portfolio.
Semiconductor companies frequently develop hardware and embedded software simultaneously.
However, engineers may rely on separate testing environments to verify semiconductor hardware and identify problems within the software that controls it.
This separation can complicate the analysis of errors that emerge from interactions between hardware and software.
Siemens intends to integrate Lauterbach’s debugging and trace capabilities with its hardware-assisted verification systems.
The combined technology is intended to provide engineers with a unified view of chip behavior and software execution.
This could help development teams identify compatibility and performance problems before a physical semiconductor is manufactured.
The approach is commonly referred to as shift-left development, in which testing and verification activities move to earlier stages of the engineering process.
Earlier identification of problems can reduce the need for costly redesigns and shorten product development schedules.
The transaction reflects the increasing complexity of application-specific integrated circuits and systems-on-chip.
Modern devices can integrate multiple processing cores, specialized accelerators, communications capabilities, and security functions.
Applications involving artificial intelligence, software-defined vehicles, high-performance computing, data centers, and connected devices are contributing to this complexity.
These systems require careful coordination between semiconductor hardware and the software running on it.
Siemens believes the acquisition will strengthen its position as a provider of tools used throughout the semiconductor design and verification lifecycle.
Lauterbach’s technology already serves customers that also use Siemens’ engineering solutions.
The company expects opportunities to expand relationships with these shared customers and generate additional revenue through an integrated product offering.
Following completion, Stephan Lauterbach and Thomas Ullmann are expected to continue working within Siemens.
The arrangement is intended to preserve Lauterbach’s technical expertise and customer relationships.
Siemens also plans to build on the acquired company’s history of developing specialized debugging technologies.
The acquisition supports Siemens’ broader strategy of connecting digital design, engineering, and industrial technologies.
Its electronic design automation operations provide software and tools used by semiconductor companies to design, simulate, verify, and manufacture chips.
The proposed transaction remains subject to customary closing conditions and regulatory approvals.
Completion is expected during the first half of 2027.
By combining semiconductor verification with embedded software debugging, Siemens aims to provide a more integrated development environment for companies designing increasingly complex electronic systems.
KEY QUOTES:
“With Lauterbach, we are further extending our industry-leading EDA portfolio for semiconductor design by bringing together our premier hardware-assisted verification portfolio with its industry-leading software debugging technologies. As semiconductors represent a core vertical for our technology strategy, this enables customers to test and optimize their products even before the actual chip is produced – significantly reducing development time.”
“Lauterbach is a remarkable success story, written in Germany for the global semiconductor industry. We will build on the impressive legacy that founders Lothar and Stephan Lauterbach and their team have achieved over the past decades and are very pleased to welcome the Lauterbach group to Siemens. We are also delighted that Stephan Lauterbach and Thomas Ullmann will continue their work as part of Siemens following the closing of the transaction.”
Cedrik Neike, Member Of The Managing Board Of Siemens And President Of Digital Industries
“The increasing convergence of hardware and software development is fundamentally changing the industry and our customers’ requirements. By combining our debug and trace technology with Siemens’ hardware-assisted verification capabilities, we are creating a powerful solution that provides developers with a unified hardware/software view of the behavior of increasingly complex ASIC and SoC devices in AI, high-performance computing, storage/hyperscale, automotive, communications and A&D applications. Our commitment to keeping our customers at the center of everything we do remains unchanged.”
Stephan Lauterbach, Co-Founder And CTO Of Lauterbach
