Arteris to Expand Portfolio with Acquisition of Cycuity, a Leader in Semiconductor Cybersecurity Assurance
Rhea-AI Summary
Arteris (Nasdaq: AIP) entered into a definitive agreement to acquire Cycuity, a provider of semiconductor cybersecurity assurance, announced Dec 11, 2025. The acquisition adds Cycuity’s hardware security assurance products to Arteris’ system IP portfolio to help chip designers assess and improve on‑chip data movement security for chiplets and SoCs.
The deal aims to address rising hardware CVEs (reported new hardware CVEs grew over 15x in five years, per NIST) and to integrate Cycuity’s tools with existing EDA flows from Cadence, Siemens EDA, and Synopsys. The transaction is subject to customary closing conditions and is expected to close in Arteris’ first quarter of fiscal 2026.
Positive
- Adds Cycuity cybersecurity assurance to Arteris product portfolio
- Targets hardware data‑movement security across chiplets and SoCs
- Aligns with EDA flows from Cadence, Siemens EDA, and Synopsys
- Addresses a growing hardware CVE trend (NIST: >15x increase in 5 years)
Negative
- Transaction subject to customary closing conditions
- Close timing limited to Arteris first quarter fiscal 2026 (timing uncertainty)
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed moves: POET +4.84%, NVEC +3.62%, CEVA +1.88%, SKYT +1.10%, while LAES -1.45%, suggesting AIP’s move is more stock-specific than a broad sector surge.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 02 | Design win | Positive | +2.5% | Black Sesame licensed Ncore 3 and FlexNoC 5 for next-gen automotive SoCs. |
| Nov 11 | AI partnership | Positive | +3.8% | Blaize adopted FlexNoC 5 to enhance its edge and hybrid AI platform. |
| Nov 04 | Earnings/guidance | Neutral | -5.9% | Q3 2025 results with revenue and ACV growth but ongoing operating losses. |
| Nov 04 | Design win | Positive | -5.9% | Altera licensed Arteris NoC IP and integration tools for FPGA and SoC FPGA. |
| Oct 23 | Earnings notice | Neutral | +10.0% | Announcement of upcoming Q3 2025 results and conference call schedule. |
Product and partnership wins often saw positive reactions, while earnings-related news produced more volatile and sometimes negative responses.
Over the last few months, Arteris reported growing Q3 2025 revenue and ACV, but the earnings release on Nov 4, 2025 coincided with a -5.88% move, highlighting sensitivity to financial details and guidance. In contrast, design-win news with Altera and Black Sesame, and edge AI adoption by Blaize, tended to draw positive or modestly negative reactions. An earlier Q3 earnings date announcement on Oct 23, 2025 saw a strong +10.02% move. Today’s acquisition fits the pattern of strategic expansion around AI, automotive, and data-centric silicon.
Market Pulse Summary
This announcement highlights Arteris’ plan to acquire Cycuity to add semiconductor cybersecurity assurance capabilities across SoCs and chiplets, addressing a threat landscape where hardware CVEs grew over 15x in five years. It extends a recent string of design wins in AI and automotive-oriented silicon. Investors may monitor how the deal, expected to close in Q1 fiscal 2026, complements existing NoC IP, as well as ongoing trends in revenue growth, operating losses, and insider selling activity reported over the past quarter.
Key Terms
soc technical
firmware technical
AI-generated analysis. Not financial advice.
CAMPBELL, Calif., Dec. 11, 2025 (GLOBE NEWSWIRE) -- Arteris, Inc. (Nasdaq: AIP), a leading provider of system IP for accelerating semiconductor creation in the AI era, today announced it has entered into a definitive agreement to acquire Cycuity, Inc., a leading provider of semiconductor cybersecurity assurance. The addition of Cycuity’s technology and expertise strengthens Arteris’ product portfolio, enabling chip designers to understand and improve data movement security in chiplets and SoCs. This pending acquisition addresses a growing industry concern about the increasing volume of sophisticated cyberattacks targeting the vast amounts of unsecured data moving through semiconductors, from AI data centers to a broad range of edge devices.
“In today’s world, where vast amounts of data are traversing every SoC and chiplet, the need for hardware security is at an inflection point. From the AI data center to the expansive array of edge applications such as autonomous driving, aerospace, drones, robotics, consumer electronics, and more, a hardware security foundation is paramount,” said K. Charles Janac, president and CEO of Arteris. “Expanding our technology portfolio to include Cycuity’s hardware security assurance products will enable our customers to achieve secure on-chip data movement.”
Semiconductor cybersecurity assurance is becoming critical to all types of chip designs, as the threat landscape has expanded to the hardware layer. Silicon vulnerabilities can result in compromised systems exposing unprotected information, a trend accelerated by the proliferation of AI and chiplets. According to the US Department of Commerce’s National Institute of Standards and Technology (NIST), the reported new Common Vulnerabilities and Exposures (CVEs) in hardware grew by over 15 times in the last five years. As such, there is a growing need for technology solutions that help to increase semiconductor security without risking SoC functionality, performance, and schedules.
"The growing footprint of hardware security vulnerabilities has greatly extended the attack surface beyond traditional software exploits. From AI data centers to edge devices, designs now require a trustworthy silicon foundation to ensure security for all electronic systems,” said Andreas Kuehlmann, CEO of Cycuity. “Arteris’ products provide the backbone to move the data across SoCs and chiplets, making them naturally complementary to hardware security assurance. Together we can accelerate the secure design and deployment of microelectronics for commercial and defense engineering teams.”
Cycuity’s innovative products and deep domain expertise help mitigate security vulnerabilities across the SoC hardware development cycle, ensuring robust protection of the entire technology stack from chips to software applications. Cycuity products uncover security weaknesses across IP blocks, XPUs and other subsystems, chiplets, and full SoCs including firmware. Working in conjunction with EDA tool flows from leading companies such as Cadence, Siemens EDA, and Synopsys, Cycuity products help semiconductor designers identify, verify, and resolve security risks prior to silicon implementation and production. This includes safeguarding against attacks exploiting microarchitectural side channels, logic bugs, third-party and open-source IP, unsecured interconnects, debug backdoors, and supply-chain gaps.
The transaction is subject to customary closing conditions and is expected to close in Arteris’ first quarter of fiscal year 2026.
About Arteris
Arteris is a global leader in system IP used in semiconductors to accelerate the creation of high-performance, power-efficient silicon. Arteris network-on-chip (NoC) interconnect IP and system-on-chip (SoC) integration automation software are used by the world's top semiconductor and technology companies to improve overall performance, engineering productivity, reduce risk, lower costs, and bring complex designs to market faster. Learn more at arteris.com.
About Cycuity
Cycuity, Inc. is a pioneer in hardware security delivering security assurance for semiconductor devices, a rapidly increasing target for remote cyberattacks. Cycuity’s innovative Radix software products and services specify, integrate and verify security across the hardware development lifecycle to ensure robust protection for the chips powering today’s sophisticated electronic systems. Radix uncovers security weaknesses across all levels, from block and subsystem to full system-on-chip (SoC) and firmware, enabling our customers to identify and resolve risks prior to manufacturing. Serving both commercial and defense industries, Cycuity provides the broadest security assurance across the design supply chain. Learn more at cycuity.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including but not limited to statements regarding the transaction(s) described in this release such as the anticipated benefits to the Company and its customers as well as the anticipated timing of the transaction closing. Words such as "may," "will," "could," "expect," "approximately," "believe," "estimate," "future," "guidance," "outlook," and similar words or expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements allow potential investors an opportunity to understand Company management’s beliefs and opinions regarding potential future outcomes, which may be used as a factor by potential investors in evaluating an investment. Although forward-looking statements are based upon what Company management believes may be reasonable future outcomes, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in a forward-looking statement. Therefore, such statements are not guarantees. Arteris assumes no obligation to update any forward-looking statement in this release, except as required by law. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from the Company’s current expectations. Important factors that could cause actual results to differ materially from those anticipated in the Company’s forward-looking statements include, but are not limited to, the Company’s ability to consummate the transaction(s) disclosed herein and the other factors described under the heading “Risk Factors” in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 filed with the Securities and Exchange Commission on November 4, 2025.
© 2004-2025 Arteris, Inc. All rights reserved worldwide. Arteris, Arteris IP, the Arteris IP logo, and the other Arteris marks found at https://www.arteris.com/trademarks are trademarks or registered trademarks of Arteris, Inc. or its subsidiaries. All other trademarks are the property of their respective owners.
Investor Contacts:
Arteris Inc.
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IR@arteris.com
Sapphire Investor Relations, LLC
Erica Mannion and Michael Funari
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Media Contact:
Arteris Inc.
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+1 408 560 3044
newsroom@arteris.com
This press release was published by a CLEAR® Verified individual.
FAQ
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