GlobalFoundries to Acquire Synopsys’ Processor IP Solutions Business, Expanding Capabilities to Accelerate Physical AI Applications
Rhea-AI Summary
GlobalFoundries (Nasdaq: GFS) has agreed to acquire Synopsys’ ARC Processor IP Solutions business, including ARC-V, ARC-Classic, ARC VPX-DSP and ARC NPX NPU product lines plus ASIP Designer and ASIP Programmer tools. The assets and engineering teams will be integrated with MIPS to deliver a comprehensive processor IP suite focused on Physical AI and custom silicon. Synopsys will retain its logic libraries, embedded memories, interface IP, security IP and subsystems. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in H2 2026. GF and Synopsys plan a coordinated transition for employees, customers and partners.
Positive
- Adds ARC-V, ARC-Classic, VPX-DSP and NPX NPU product lines
- Includes ASIP Designer and ASIP Programmer software tools
- Integrates ARC assets with MIPS to form a comprehensive IP suite
- Targets acceleration of GF's Physical AI and custom silicon roadmap
- Expected close in H2 2026 (clear timeline)
Negative
- Transaction subject to regulatory approvals — closing not guaranteed
- Benefits delayed until completion in H2 2026
- Does not include Synopsys' logic libraries, memories, interface and security IP
News Market Reaction
On the day this news was published, GFS gained 1.17%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
GFS was up 2.46% while key peers were mixed: UMC -1.59%, ON +1.04%, STM -0.25%, ASX +0.81%, SWKS -1.10%, indicating a stock-specific move rather than a broad semiconductor rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 07 | Earnings call logistics | Neutral | +3.0% | Scheduled Q4 and full-year 2025 earnings call and webcast details. |
| Dec 10 | CFO appointment | Positive | -1.1% | Appointment of Sam Franklin as CFO to support profitability and AI scaling. |
| Nov 19 | Strategic partnership | Positive | +0.3% | Collaboration with BAE Systems on radiation-hardened space semiconductors. |
| Nov 17 | AI acquisition | Positive | -0.3% | Acquisition of Advanced Micro Foundry to expand silicon photonics AI capacity. |
| Nov 14 | AI strategy update | Positive | +1.0% | Announcement of a Physical AI-focused business and strategy webinar. |
Recent AI- and acquisition-related announcements have produced mixed single-day reactions, with an average move of 3.65% for tagged acquisition/AI events and occasional divergences on leadership and M&A news.
Over the last few months, GlobalFoundries has focused on AI and strategic positioning. An acquisition/AI deal for Advanced Micro Foundry on Nov 17, 2025 modestly moved shares by -0.33%, while the earlier MIPS acquisition announcement drove a 6.96% move. Collaboration with BAE Systems on space-grade semiconductors and an investor webinar on Physical AI highlight the push into specialized, higher-value markets. Today’s ARC Processor IP acquisition further extends that strategy by deepening processor IP and Physical AI capabilities.
Market Pulse Summary
This announcement further advances GlobalFoundries’ Physical AI strategy by acquiring Synopsys’ ARC Processor IP Solutions business and integrating it with MIPS to form a broader processor IP suite. Together with earlier MIPS and AMF transactions, it extends coverage from RISC-V and real-time compute to silicon photonics and scalable AI cores. Investors may focus on closing timelines in H2 2026, integration milestones, customer uptake of the combined IP portfolio, and how these moves influence mix toward higher-value AI and custom silicon solutions.
Key Terms
risc-v technical
dsp technical
processor ip technical
ip licensing financial
AI-generated analysis. Not financial advice.
Acquisition will strengthen GF’s leadership in Physical AI, enhances compute capabilities, expands company’s RISC-V and AI portfolio and software tools and accelerates custom silicon development
MALTA, N.Y., Jan. 14, 2026 (GLOBE NEWSWIRE) -- GlobalFoundries (Nasdaq: GFS) (GF) today announced its execution of a definitive agreement to acquire Synopsys’ ARC Processor IP Solutions business, including its teams of engineers and designers. This strategic move will accelerate GF’s and MIPS physical AI roadmap and strengthen its capabilities in custom silicon solutions. The proposed acquisition includes the ARC-V, ARC-Classic, ARC VPX-DSP and ARC NPX NPU product lines as well as the applications-specific instruction set (ASIP) processor tools including ASIP Designer and ASIP Programmer. Upon closing, these assets and expert teams will be integrated with MIPS, a GlobalFoundries company, to deliver a comprehensive processor IP suite, especially tailored for physical AI applications. The expanded offering will enhance engagement through IP licensing and software, enabling faster time-to-market for GF’s customers.
The integration of Synopsys’ ARC technologies, which includes high-performance, mid-range and ultra-low power compute and AI cores, will enable scalable, energy-efficient processing solutions. With a strong patent portfolio, a global customer network and proven engineering expertise, this acquisition will accelerate innovation and enhance capabilities to deliver solutions for wearables, robotics, AI-driven consumer applications and advanced AI silicon.
“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 enhances the focus of Synopsys’ IP business on furthering 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, enabling customers worldwide to benefit from continued, strong competition in the development and delivery of processor IP solutions.”
The acquisition of Synopsys' ARC and ARC-V Processor IP Solutions business is subject to the satisfaction of customary closing conditions, including the receipt of required regulatory approvals, and is expected to be completed in the second half of calendar year 2026. Following the acquisition, GF will work closely with Synopsys to ensure a seamless transition for employees, customers and partners.
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 and diverse team delivers results with an unyielding focus on security, longevity and sustainability. For more information, visit www.gf.com.
About MIPS
MIPS, a GlobalFoundries company, is a leading provider of RISC-V IP and software for physical AI platforms. Our innovations deliver standards-based computing platforms developed with our customers’ software-first solutions. MIPS technology enables the adoption of AI in real-time, event-driven products for high-growth markets such as aerospace, automotive, defense, embedded computing, enterprise infrastructure, and industrial robotics. As part of the GlobalFoundries family, we deliver RISC-V at foundry scale and enable Physical AI to be built on MIPS. For more information visit MIPS.com.
©GlobalFoundries Inc., GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. Or its subsidiaries. All other trademarks are the property of their respective owners.
Forward-looking information
This news release contains forward-looking statements regarding the combination of GF’s MIPS business with Synopsys’ Processor IP Solutions business, which involve risks and uncertainties. Such risks and uncertainties include, but are not limited to, the expected timing of the transaction, failure to satisfy the conditions to closing of the transaction, and the potential benefits of the transaction. Readers are cautioned not to place undue reliance on any of these forward-looking statements and urged to review the risks and uncertainties discussed in our 2024 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.
Media Contact:
Erica McGill
erica.mcgill@gf.com
FAQ
What did GlobalFoundries (GFS) announce on January 14, 2026 about Synopsys ARC?
Which ARC product lines will GFS acquire in the Synopsys deal for GFS stockholders?
When is the GlobalFoundries acquisition of Synopsys ARC expected to close (GFS)?
How will the Synopsys ARC acquisition affect GlobalFoundries' product strategy (GFS)?
Will Synopsys keep any IP after the GFS acquisition?
Are there regulatory or closing conditions that could affect the GFS acquisition timeline?
