Siemens has agreed to acquire Precision Innovations, a privately held electronic design automation software company specializing in AI-powered chip planning. The acquisition will expand Siemens’ capabilities for exploring and optimizing advanced system-on-a-chip designs earlier in the development process.
Financial terms were not disclosed. The transaction is expected to close during the third quarter of 2026, subject to customary closing conditions.
Electronic design automation, commonly known as EDA, includes the software tools semiconductor companies use to design, verify and prepare chips for manufacturing. Precision Innovations focuses on helping engineering teams determine whether proposed chip architectures are feasible before committing substantial resources to detailed implementation.
The company’s technology evaluates tradeoffs involving power consumption, performance and chip area, which are collectively known as PPA. Improving these characteristics early can reduce redesign work, shorten development cycles and help semiconductor companies bring products to market faster.
Precision Innovations develops software based on OpenROAD, an open-source framework for automating parts of the chip design process. Its tools use artificial intelligence to explore many possible design configurations and identify promising options before engineers advance to later stages.
This approach supports a development strategy known as shift-left design, where important analysis and optimization activities are performed earlier in the engineering process. Finding architectural issues at that stage can be less costly and time-consuming than correcting them after physical implementation has begun.
System-on-a-chip products combine processors, memory, interfaces and other functions within a single integrated circuit. As these designs become more complex, engineering teams must evaluate growing numbers of architectural combinations while balancing performance targets, energy use, manufacturing constraints and cost.
Siemens plans to add Precision Innovations to its Digital Design Creation software portfolio. The technology will complement Siemens’ existing digital design, implementation and verification products, supporting an end-to-end workflow spanning chip architecture, physical implementation and silicon lifecycle management.
Precision Innovations’ tools are already used by semiconductor and technology companies. Siemens expects the combination to help customers reduce design iterations, increase engineering productivity and make better-informed decisions throughout the development process.
Founded in San Diego in 2019, Precision Innovations was established to reduce the cost, expertise and uncertainty barriers associated with advanced semiconductor design. Joining Siemens is expected to give the company greater resources and distribution for bringing its technology to a wider group of chip developers.
The acquisition reflects Siemens’ broader investment in industrial artificial intelligence and semiconductor design software. By integrating AI-driven architectural exploration with its existing EDA platform, Siemens aims to help customers manage growing chip complexity and accelerate the path from an initial concept to manufactured silicon.
KEY QUOTES:
“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.”
“Integrating Precision Innovations’ AI-powered early design exploration into our EDA portfolio can significantly accelerate time to silicon and improves power, performance and area.”
Ankur Gupta, Executive Vice President of the IC Portfolio at Siemens EDA, Siemens Digital Industries Software
“Becoming part of Siemens allows us to scale our technology and bring AI-driven chip planning to a much broader set of semiconductor teams.”
“Together, we can help designers leverage AI to evaluate thousands of design options earlier in the process and focus innovation where it matters most.”
Tom Spyrou, CEO of Precision Innovations
