Synopsys Sells Processor IP Unit to GlobalFoundries

Synopsys is realigning a business by selling processor IP assets to become more AI and interface centered.

Synopsys, Inc. has signed a definitive agreement with GlobalFoundries to divest its Processor IP Solutions business unit as a strategic business step to enhance its focus on high-value, AI-driven opportunities. The deal enables Synopsys to focus its IP roadmap on cloud and HPC automotive and consumer device interfaces and foundation technologies.

Synopsys CEO Sassine Ghazi explains the rationale behind the move in a wider business plan to build stronger leadership in key IP, as well as allow customers to develop at a more rapid pace in silicon-to-systems development. The company indicated that GlobalFoundries will become a trustworthy custodian of the processor IP portfolio, which would ensure customer and partner continuity.

GlobalFoundries will, in the process, buy ARC-V (RISC-V) and ARC CPU IP, ARC DSP and NPU IP, and other software tools, such as the ARC MetaWare Development Toolkit and ASIP design solution. Tim Breen, the CEO of GF, claimed that the acquisition assists the business in the focus of Physical AI, combining the tested IP with high-end manufacturing.

Synopsys will own and continue to grow its extensive design IP businesses, such as logic libraries, embedded memory, interface IP, security IP, and subsystems. The firms will form alliances in the process to ensure that there is continued support for their customers.

Bringing the business transaction to a close should happen in the second half of 2026, subject to regulatory approvals and customary closing conditions. No financial terms were provided.