Synopsys and Amazon Announce Strategic, Multi-year IP Agreement for Custom Silicon; Collaboration Also Extends to Cloud and AI-Powered Engineering

Amazon becomes the lead customer for application-optimized silicon IP as Synopsys evolves toward a license-plus-royalty model.

Rhea-AI Summary

Synopsys (SNPS) announced a multi-year agreement worth more than $1 billion with Amazon to expand its custom-chip engineering collaboration. Amazon is the lead customer for Synopsys' expansion into application-optimized silicon IP, reusable chip-design technology tailored to specific applications. The business is evolving to a license-plus-royalty model intended to deliver value as production volumes grow.

The agreement expands Amazon's use of Synopsys' chip-design, simulation and AI tools. The companies plan to optimize Synopsys software on Trainium and Graviton and develop custom AI capabilities for engineering workflows. Synopsys is also adopting Amazon EC2, cloud storage and Bedrock to accelerate its own product development.

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Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointMulti-year, $1B+ agreement expands Synopsys' silicon IP business with Amazon as lead customer. 1.3% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.License-plus-royalty model aims to deliver value as production volumes grow.
• Minor pointExpanded Amazon use covers Synopsys' chip-design, simulation and agentic AI technologies.
• Minor point. Forward-looking: it has not happened yet and may not happen.Planned software collaboration includes optimization on Trainium and Graviton and custom AI engineering capabilities.
• Minor point. Forward-looking: it has not happened yet and may not happen.AWS services adoption aims to accelerate Synopsys' IP and chip-design tools development.

Negative

• None.

Key Figures

Agreement value: $1B+

Agreement value

$1B+

Multi-year Synopsys–Amazon agreement

Key Terms

silicon ip, multiphysics

2 terms

silicon ip technical

"expansion of Synopsys' silicon IP business"

Silicon IP is reusable, pre-designed semiconductor building blocks—such as processor cores, memory controllers, interface controllers and analog circuits—licensed to chipmakers to include inside integrated circuits. It covers design files, verification materials and physical layouts that save engineers from designing common functions from scratch. Investors care because silicon IP can speed product development, lower manufacturing risk and create predictable licensing or royalty revenue for the IP provider, like buying prefabricated parts for a machine.

multiphysics technical

"accelerate multiphysics solutions on Trainium and Graviton"

A multiphysics simulation is a computer model that links two or more interacting physical effects—such as heat, fluid flow, structural stress or electrical behavior—so they can be studied together instead of separately. For investors, it matters because these coupled models help companies predict real-world performance, cut costly prototypes, speed product development, and reduce technical risk before production or regulatory review; think of it like testing how a building handles wind, rain and weight simultaneously rather than one at a time.

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News Highlights:

• Strategic engagement to accelerate the engineering of Amazon custom chips and AWS infrastructure using Synopsys' silicon IP and AI-powered engineering software solutions
• Multi-year, $1B+ agreement marks the expansion of Synopsys' silicon IP business to serve increasing demand for application-optimized IP while evolving to a license-plus-royalty business model that aims to deliver value to both companies as production volumes grow
• Synopsys to accelerate product development using AWS services and partner to optimize Synopsys' software on Trainium and Graviton
• Synopsys engineering will also adopt Amazon Elastic Compute Cloud (Amazon EC2) and Amazon Bedrock to accelerate its product development.

SUNNYVALE, Calif., Sept. 30, 2026 /PRNewswire/ -- Synopsys, Inc. (Nasdaq: SNPS) today announced a strategic agreement with Amazon to accelerate Amazon's custom silicon innovation and advance the development of increasingly complex AI-powered products and cloud infrastructure. The multi-year agreement marks the expansion of Synopsys' silicon IP business to serve increasing demand for application-optimized IP with Amazon as its lead customer.

Amazon continues to build on its leadership and longstanding investment in a broad portfolio of purpose-built chips, including Nitro for cloud security, network and storage, Graviton for general-purpose computing, and Trainium for AI training and inference workloads. Building on more than 15 years of collaboration, the agreement expands Amazon's use of Synopsys' IP to include application-optimized silicon IP. The agreement also expands Amazon's use of Synopsys EDA, simulation and analysis (S&A), and agentic AI technologies. Synopsys and Amazon will work to accelerate multiphysics solutions on Trainium and Graviton.

In addition, the companies plan to collaborate on applying AI across silicon-to-system engineering workflows. This includes deploying Synopsys' AI-powered EDA, physics-based simulation and agentic AI solutions, as well as developing custom agentic AI capabilities to help Amazon's engineering teams design, analyze, optimize, and validate complex chips and systems more efficiently.

"Amazon has invested in custom silicon for more than a decade, and it has fundamentally changed what's possible for AWS and our customers," said Peter DeSantis, SVP, foundational AI, custom silicon, quantum computing at Amazon. "From Graviton to Trainium, purpose-built chips deliver better performance at lower cost because they're designed for exactly what customers need. As our chip designs grow more ambitious and AI reshapes the engineering process itself, Synopsys helps us move faster across the design cycle, helping us deliver more capable, efficient computing for customers worldwide."  

To accelerate its own IP and EDA tools development, Synopsys is adopting Amazon EC2 and cloud storage services, as well as Amazon Bedrock to build and deploy AI applications and agents to help innovate faster and scale its product offerings.

"Special purpose silicon is at the heart of AWS innovation. As we expand into application-optimized IP solutions, we're proud to have Amazon as our lead customer for this next phase of growth," said Sassine Ghazi, president and CEO of Synopsys. "More broadly, by combining Amazon's leadership in AI infrastructure and custom silicon with Synopsys' leadership in silicon IP, EDA and Multiphysics solutions, we can dramatically increase the productivity of our teams and shape the future of AI-native engineering." 

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. 

© 2026 Synopsys, Inc. All rights reserved. Synopsys, Ansys, the Synopsys and Ansys logos, and other Synopsys trademarks are available at https://www.synopsys.com/company/legal/trademarks-brands.html. Other company or product names may be trademarks of their respective owners.

Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements regarding the strategic multi-year agreement between Synopsys and Amazon and its anticipated benefits, future business and technology opportunities, growth initiatives, product development and innovation, and expected future results and outcomes. These statements involve risks, uncertainties and other factors that could cause our actual results, time frames, or achievements to differ materially from those expressed or implied in such forward-looking statements. Information on potential risks, uncertainties and other factors that could affect Synopsys' results is included in filings we make with the SEC from time to time, including in the sections entitled "Risk Factors" in our latest Annual Report on Form 10-K and in our latest Quarterly Report on Form 10-Q. Synopsys undertakes no duty, and does not intend, to update any forward-looking statement provided in this press release, whether as a result of new information, future events or otherwise, unless required by law.

Contacts

Investors
Tushar Jain
synopsys-ir@synopsys.com

Media
Cara Walker  
cara@synopsys.com
corp-pr@synopsys.com 

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SOURCE Synopsys, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How large is Synopsys' custom silicon agreement with Amazon?

The agreement is multi-year and worth more than $1 billion. It expands Amazon's use of Synopsys' silicon IP to include application-optimized designs, with Amazon serving as the lead customer for that business expansion.

What business model is Synopsys adopting under its Amazon collaboration?

Synopsys' silicon IP business is evolving toward a license-plus-royalty model. The company aims for the model to deliver value to both companies as production volumes grow.