Siemens has announced the signing of an agreement to acquire a German company, Lauterbach, which specializes in developing software used to trace and debug chip designs and embedded software. The deal is expected to close in H1 of 2027.
This acquisition is intended to expand Siemens’ footprint within semiconductor verification and design. The company didn’t reveal the financial terms of this acquisition. The completion of the deal is subject to regulatory approval and the completion of the other requisite terms of the agreement.
The tools developed by Lauterbach enable engineers to get insights into the internal activity of processors, as well as to identify faults and trace such faults to their source. Siemens intends to combine the tools of Lauterbach with its own chip-verification tools. This will allow engineers to have one workflow through which they can validate the code and hardware running that code.
Cedrik Neike, who sits on the management board of Siemens, explains that debugging often takes between 50% and 60% of the work that is done when verifying certain advanced chip programs. Consequently, he added, it is vital to expedite the process through which these tasks are undertaken so that chip development can be completed sooner.
Once this acquisition is finalized, Siemens expects its clients to have the benefit of embedded software development and validation before the physical chip is available. Chip verification already takes place before manufacturing, but the combined tools would allow hardware and embedded software to be tested together earlier. This takes time, and Siemens wants to reduce that time lost through the lengthy process that is currently used.
Stephan Lauterbach, the CTO and co-founder of Lauterbach, says the firm is committed to keeping clients at the center of what the company does, and that commitment will remain even as the firm is acquired by Siemens. According to the terms of the deal, he will be retained alongside another executive of the German firm.
The German company is based near Munich and reported revenue of $67 million in 2025. Its vast customer base, about 1,200-strong, comes from diverse industries like telecom, auto-making, and chip manufacturing. It was founded in 1979 and currently has 170 workers.
The semiconductor industry around the world is experiencing a phase of consolidation as existing players branch out into other segments by acquiring firms that are notable in the fields they wish to enter. It won’t therefore be surprising when tech giants like Broadcom Inc. (NASDAQ: AVGO) also announce additional acquisitions over the coming months and years.
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