Another Reason for Intel to Acquire GlobalFoundries

[Daniel Nenni]

Synopsys Agrees to Sell Processor IP Solutions Business to GlobalFoundries

Key Highlights:

• - Synopsys further focuses its IP resources and roadmap on extending leadership in interface and foundation IP while pursuing highest-value, AI-driven opportunities from cloud to edge.
• - Transaction underscores Synopsys' commitment to disciplined portfolio management while capturing highest growth engineering solutions from silicon to systems.
• - Synopsys will continue to broadly enable the industry's processor ecosystems with leading EDA solutions PPA-optimized for processor implementation, verification, signoff and electronics digital twins.

SUNNYVALE, Calif., Jan. 14, 2026 /PRNewswire/ -- Synopsys, Inc. (NASDAQ: SNPS) today announced it has entered into a definitive agreement for the sale of its Processor IP Solutions business to GlobalFoundries (Nasdaq: GFS) (GF). Synopsys' extensive investment in IP quality, comprehensive technical support and robust IP development methodology enables designers to reduce integration risk and accelerate time-to-market. This transaction enhances the focus of Synopsys' IP business on strengthening its leadership position in interface and foundation IP while pursuing the highest-value, AI-driven opportunities from the cloud to the edge for customers spanning HPC, mobile, automotive and consumer.

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  Synopsys headquarters
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• "We are focusing our IP resources and roadmap to further our leadership in essential interface and foundation IP while winning new, high-value opportunities that advance our position as the leading provider of engineering solutions from silicon to systems," said Sassine Ghazi, president and CEO of Synopsys. "GF will be an excellent future steward for the processor IP solutions business, and we are committed to a smooth transition for the team, customers and partners."

With this transaction, GF is acquiring the Synopsys Processor IP portfolio, which consists of ARC-V™ (RISC-V) and ARC® CPU IP, DSP IP, Neural Network Processing Unit (NPU) IP, and related software development tools, including ARC MetaWare Development Toolkits. The transaction also includes Synopsys' ASIP Designer™ and ASIP Programmer™ tools for automating the design and implementation of application-specific instruction-set processors (ASIPs). Synopsys and GF will work together to ensure Processor IP customers are fully supported through the transition, without disruption.

"This acquisition doubles down on our commitment to advancing our leadership in Physical AI. By combining Synopsys' ARC IP and MIPS technologies with GF's advanced manufacturing capabilities, we are lowering the barrier for customer adoption of the essential technologies that our customers need to innovate faster for the next-generation of compute and AI applications," said Tim Breen, CEO of GlobalFoundries. "This move will strengthen our differentiated technology roadmap and position GF to deliver end-to-end solutions for our customers that will support the expansion of AI-enabled devices into the physical world."

Synopsys will retain and continue to grow its broad design IP portfolio spanning logic libraries, embedded memories, interface IP, security IP, and subsystems.

This transaction is not material to Synopsys' business, and terms of the agreement are not being disclosed. The transaction is expected to be completed in the second half of calendar year 2026, subject to the satisfaction of customary closing conditions, including the receipt of required regulatory approvals. Until the transaction closes, the business will continue to operate as part of Synopsys with a focus on execution, customer service, and continued innovation.

About Synopsys
Synopsys, Inc. (Nasdaq: SNPS) is the leader in engineering solutions from silicon to systems, enabling customers to rapidly innovate AI-powered products. We deliver industry-leading silicon design, IP, simulation and analysis solutions, and design services. We partner closely with our customers across a wide range of industries to maximize their R&D capability and productivity, powering innovation today that ignites the ingenuity of tomorrow. Learn more at www.synopsys.com.

 

[Daniel Nenni]

Previously:

GlobalFoundries Completes Acquisition of MIPS ​

August 14, 2025
Transaction expands IP offerings, strengthens portfolio differentiation and brings in engineering talent to accelerate AI and compute innovation

MALTA, N.Y., Aug. 14, 2025 – GlobalFoundries (Nasdaq: GFS) (GF) today announced that it has completed its acquisition of MIPS, a leading supplier of AI and processor IP. The acquisition strengthens GF’s position as a global leader in differentiated semiconductor manufacturing and enhances its capabilities in AI, edge computing and other high-growth markets.

The combination of GF and MIPS brings together decades of expertise in advanced semiconductor manufacturing and processor IP innovation, enabling GF to deliver more differentiated solutions to meet the growing demand for energy-efficient, high-performance computing at the edge and beyond.

MIPS is expected to continue to operate as a standalone business within GF, maintaining its licensing model and focusing on serving a broad customer base across diverse technology sectors.

About GF

GlobalFoundries (GF) is a leading manufacturer of essential semiconductors the world relies on to live, work and connect. We innovate and partner with customers to deliver more power-efficient, high-performance products for the automotive, smart mobile devices, internet of things, communications infrastructure and other high-growth markets. With our global manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted and reliable source for customers around the world. Every day, our talented global team delivers results with an unyielding focus on security, longevity and sustainability. For more information, visit www.gf.com.

 

[ChrisGar]

"Synopsys today announced it has entered into a definitive agreement for the sale of its Processor IP Solutions business to GlobalFoundries"

Does this mean that this product area will only be supported for GF technologies ?

 

[Daniel Nenni]

"Synopsys today announced it has entered into a definitive agreement for the sale of its Processor IP Solutions business to GlobalFoundries"

Does this mean that this product area will only be supported for GF technologies ?

They would have to support TSMC for sure. Synopsys is very close partners with TSMC. With the MIPS announcement I was told that other processes will be supported based on customer demand and customers will demand TSMC. It will no doubt be the same for this IP.

I worked for the company that Synopsys acquired the ARC processor technology from (Virage Logic). There was quite a bit of legacy business as ARC competed with Arm. Synopsys moved ARC to RISC-V architecture so I can see how this acquisition makes sense. Synopsys needs to focus on working with processor IP companies versus competing with them.

Intel, on the other hand, would be wise to embrace other processor technology for the foundry business. Just my opinion of course but I say to Lip-Bu acquire GF and hyper grow the foundry business, absolutely.

 

[fatfat]

Intel, on the other hand, would be wise to embrace other processor technology for the foundry business. Just my opinion of course but I say to Lip-Bu acquire GF and hyper grow the foundry business, absolutely.

I am wondering if Intel needs the approval from the State Administration for Market Regulation of China to acquire GF.

 

[tooLongInEDA]

They would have to support TSMC for sure. Synopsys is very close partners with TSMC. With the MIPS announcement I was told that other processes will be supported based on customer demand and customers will demand TSMC. It will no doubt be the same for this IP.

I worked for the company that Synopsys acquired the ARC processor technology from (Virage Logic). There was quite a bit of legacy business as ARC competed with Arm. Synopsys moved ARC to RISC-V architecture so I can see how this acquisition makes sense. Synopsys needs to focus on working with processor IP companies versus competing with them.

Intel, on the other hand, would be wise to embrace other processor technology for the foundry business. Just my opinion of course but I say to Lip-Bu acquire GF and hyper grow the foundry business, absolutely.

Surely that's just trading one conflict of interest (Synopsys competing with other processor IP companies who are also its customers) for another (GF competing with TSMC whilst also attempting to work with them). The same applies to Intel with Intel Products competing with Intel Foundry customers until these businesses are properly separated. Hasn't the lesson from TSMC and ARM been that avoiding such conflicts of interest is the winning strategy ?

That said, I did hear it said - many years ago now - that Synopsys badly compromised its position at ARM by acquiring the ARM processor IP in the first place. And it's not entirely clear that ARM will manage to stay completely clear of making some sort of chips going forwards. Is the clean separation of businesses to avoid customer competition just a phase that may be passing ? Some of the AI business relationships are very messy indeed.

This deal also seems to send out a signal that the ARC processor IP being transferred here isn't going to be targeted at leading edge nodes going forwards. Perhaps it wasn't anyway and this doesn't diminish the IP TAM. The wording doesn't suggest this is a high growth business now.