Siemens acquires Lauterbach to expand chip software business

Siemens is expanding its chip development software business by acquiring the Bavarian family-owned company Lauterbach. Lauterbach develops tools that help engineers detect errors in the interaction between complex chips and software, a process that now accounts for 50 to 60 percent of total test time in some chip projects. The acquisition includes a specialist with approximately 170 employees and 60 million euros in revenue; the purchase price was not disclosed. This is Siemens' 14th acquisition in this sector within five years.

Siemens is one of three global market leaders in this space alongside Cadence and Synopsys, but is currently the smaller of the three and aims to close the gap through acquisitions. The move reflects the growing importance of software in chip design and testing, as hardware complexity increases. By integrating Lauterbach's tools, Siemens seeks to enhance its offerings to semiconductor manufacturers and improve its competitive position in the EDA (Electronic Design Automation) market. The acquisition underscores the trend of industrial software companies expanding into specialized niches to capture value in the semiconductor supply chain.