M&A Trends in Semiconductor Design: 2025 Report & 2025–26 Outlook

Executive Summary

The semiconductor design sector is experiencing a dynamic phase in 2025, characterized by strategic mergers and acquisitions (M&A) aimed at enhancing capabilities in AI, edge computing, and supply chain resilience. Notable transactions include Synopsys' acquisition of Ansys and Cadence Design Systems' purchase of Secure-IC. These moves reflect a broader industry trend of consolidating specialized technologies to meet evolving market demands.

Key M&A Trends in Semiconductor Design

Strategic Consolidation for AI and Simulation Capabilities

• Synopsys and Ansys Merger: In a landmark $35 billion deal, Synopsys announced its acquisition of Ansys, aiming to integrate electronic design automation (EDA) with advanced simulation tools. The merger addresses the growing need for comprehensive design solutions in AI and data-intensive applications. Regulatory bodies, including the U.S. FTC, have required divestitures to maintain market competition.


• Cadence Acquisitions: Cadence Design Systems expanded its portfolio by acquiring Secure-IC, a leader in embedded security IP, and BETA CAE Systems, enhancing its simulation and analysis capabilities.
  

Focus on Specialized and Niche Markets

Companies are targeting acquisitions that provide specialized capabilities:

• Lattice Semiconductor: Focused on low-power FPGAs, Lattice has acquired firms to strengthen its position in edge computing and AI markets.
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• Central Semiconductor: Engaged in smaller-scale acquisitions to meet specific demands in automotive and industrial applications.
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Supply Chain Resilience and Manufacturing Expansion

In response to global chip shortages, companies are acquiring manufacturing assets:

• Intel's Acquisition of Tower Semiconductor: Intel expanded its foundry services to diversify its supply chain and meet increasing chip demand.


• On Semiconductor's Strategic Moves: ON Semiconductor has acquired manufacturing facilities to bolster capacity, particularly for power and analog solutions used in electric vehicles and renewable energy systems.

Acquirer	Target	Deal Value	Strategic Focus	Status
Synopsys	Ansys	$35 billion	Integration of EDA and simulation tools	Pending regulatory approvals
Cadence Design Systems	Secure-IC	Undisclosed	Embedded security IP	Expected to close mid-2025
Cadence Design Systems	BETA CAE Systems	$1.24 billion	Simulation and analysis software	Completed
Intel	Tower Semiconductor	Undisclosed	Foundry services expansion	Completed
ON Semiconductor	Manufacturing Facilities	Undisclosed	Capacity expansion for power and analog solutions	Ongoing

Market Outlook for 2025–26

• Revenue Growth: Gartner forecasts double-digit revenue growth in 2025 and 2026—11.8% and 11.2% respectively—signaling a broad recovery for the semiconductor sector.


• AI and Edge Computing: The rise of AI, machine learning, and edge computing is driving M &A activity, with companies acquiring startups specializing in these technologies to enhance their offerings.


• Geopolitical Factors: Trade tensions and national security concerns are influencing M &A strategies, with companies seeking to secure domestic supply chains and reduce dependency on foreign entities.

Future Outlook

The semiconductor design industry's M&A landscape in 2025 is marked by strategic acquisitions aimed at integrating advanced technologies, enhancing supply chain resilience, and expanding into specialized markets. As AI and edge computing continue to evolve, companies are expected to pursue further M&A activities to stay competitive and meet the growing demand for innovative semiconductor solutions.