Synopsys Enters Definitive Agreement with GlobalFoundries For Sale of Processor IP Solutions Business
Rhea-AI Summary
Synopsys (NASDAQ: SNPS) has entered a definitive agreement to sell its Processor IP Solutions business to GlobalFoundries (NASDAQ: GFS). The portfolio transferring includes ARC-V (RISC-V) and ARC CPU IP, DSP IP, NPU IP, and related software tools such as ARC MetaWare, plus ASIP Designer and ASIP Programmer tools. Synopsys said the deal is not material to its business and that terms are not disclosed. The transaction is expected to close in second half of calendar 2026, subject to customary closing conditions and regulatory approvals. Synopsys will retain its design IP for logic libraries, embedded memories, interface IP, security IP, and subsystems and will focus IP resources on interface and foundation IP and AI-driven opportunities from cloud to edge.
Positive
- Processor IP portfolio sale refocuses Synopsys on interface and foundation IP
- Includes ARC-V, ARC CPU, DSP, NPU IP and software toolchains
- Expected close in H2 2026 provides a clear timing window for transition
Negative
- Deal terms not disclosed, limiting investor assessment
- Closing is subject to regulatory approvals, introducing execution risk
News Market Reaction
On the day this news was published, SNPS declined 1.26%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
GFS rose 2.46% while key semiconductor peers showed mixed moves: ON and ASX were positive, UMC, STM and SWKS declined. No peers appeared in the momentum scanner, supporting this as a stock-specific reaction to the processor IP deal rather than a broad sector 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% | Named Sam Franklin as new CFO with finance and IR background. |
| Nov 19 | Defense partnership | Positive | +0.3% | Collaboration with BAE Systems on radiation-hardened space semiconductors. |
| Nov 17 | Silicon photonics M&A | Positive | -0.3% | Acquisition of AMF to expand silicon photonics and AI infrastructure. |
| Nov 14 | AI strategy webinar | Positive | +1.0% | Announced investor webinar on Physical AI and edge device solutions. |
Recent GFS news often shows mixed alignment: strategic and M&A updates sometimes saw modest or negative moves, while neutral logistical announcements have occasionally coincided with stronger gains.
Over the past few months, GlobalFoundries has highlighted multiple strategic initiatives. On Nov 14, 2025, it announced a webinar focused on the Physical AI market. This was followed on Nov 17, 2025 by acquiring Advanced Micro Foundry to build a leading silicon photonics foundry, and on Nov 19, 2025 by a space-focused semiconductor collaboration with BAE Systems. A new CFO was appointed on Dec 10, 2025, and an earnings call date for Q4 and full-year 2025 was set on Jan 7, 2026. Today’s processor IP acquisition deepens this AI and systems roadmap.
Market Pulse Summary
This announcement adds Synopsys’ ARC-V, ARC CPU, DSP and NPU IP, along with ASIP tools, to GlobalFoundries’ portfolio, reinforcing its focus on Physical AI and end-to-end solutions. In recent quarters, GFS also reported stronger profitability, including Q3 2025 net income of $249 million and basic EPS of $0.45, and completed the $226 million MIPS acquisition. Investors may track regulatory approvals, integration progress, and future earnings disclosures to gauge the long-term impact of this transaction.
Key Terms
risc-v technical
cpu technical
dsp technical
neural network processing unit technical
AI-generated analysis. Not financial advice.
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.
"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.
© 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.
Synopsys Contacts:
Phil Lee
Investor Relations
synopsys-ir@synopsys.com
Cara Walker
Media Relations
corp-pr@synopsys.com
Forward-Looking Statements
This press release includes certain forward-looking statements regarding Synopsys' Processor IP Solutions business; details of the transaction including expected timing thereof; the benefits of the transaction; and initiatives involving Synopsys' design IP business. 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. Such risks, uncertainties and factors include but are not limited to, the failure to satisfy the conditions to the consummation of the proposed divestiture, and the risks more fully described in filings Synopsys makes with the SEC from time to time, including in the sections entitled "Risk Factors" in Synopsys' latest Annual Report on Form 10-K and in Synopsys' latest Quarterly Reports on Form 10-Q. The information provided herein is as of January 14, 2026. Synopsys undertakes no duty to, and does not intend to, update any forward-looking statement, whether as a result of new information, future events or otherwise, unless required by law.
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SOURCE Synopsys, Inc.
FAQ
What assets is GlobalFoundries buying from Synopsys in the GFS acquisition announced January 14, 2026?
How will the Synopsys (SNPS) sale of Processor IP affect Synopsys' business focus?
When is the Synopsys to GlobalFoundries (GFS) Processor IP transaction expected to close?
Did Synopsys (SNPS) say the Processor IP sale is material to its business?
Will Synopsys (SNPS) retain other IP after selling the Processor IP business?
