Synopsys Divests Processor IP Unit to GlobalFoundries in Major AI Realignment

SUNNYVALE, CA – January 14, 2026 – In a significant strategic move reshaping the semiconductor landscape, Synopsys, Inc. today announced it has entered into a definitive agreement to sell its Processor IP Solutions business to the major chip manufacturer GlobalFoundries (GF). The deal signals a deliberate repositioning by both companies as they race to capture the burgeoning market for artificial intelligence, from massive cloud data centers to intelligent edge devices.

Under the terms of the agreement, GlobalFoundries will acquire a substantial portfolio of processor technologies, including the widely used ARC-V (RISC-V) and classic ARC CPU cores, Digital Signal Processor (DSP) IP, and specialized Neural Network Processing Unit (NPU) IP. The transaction also includes the associated software development tools crucial for designing custom chips, such as the ARC MetaWare Development Toolkits and the ASIP Designer tools for creating application-specific processors.

For Synopsys, the divestiture marks a strategic pivot to concentrate its formidable resources on what it deems its most critical and highest-growth intellectual property. For GlobalFoundries, the acquisition represents an aggressive leap beyond its traditional role as a pure-play foundry, moving to offer customers a more integrated package of design IP and advanced manufacturing.

A Strategic Pruning for Synopsys

Synopsys is framing the sale as a calculated step to sharpen its competitive edge in the AI era. By divesting the processor unit, the company plans to double down on its leadership in interface IP—the crucial technology that allows different parts of a chip to communicate—and foundation IP, which includes fundamental building blocks like logic libraries and embedded memories. This move is designed to free up resources to pursue what the company calls the "highest-value, AI-driven opportunities."

"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, in the official announcement. Ghazi added that he believes GF will be an "excellent future steward" for the processor business and committed to a smooth transition.

While the financial terms of the deal were not disclosed, Synopsys characterized the transaction as "not material" to its overall business. This claim is substantiated by the company's robust financial standing. With full-year 2025 revenues hitting a record $7.05 billion and projections for fiscal 2026 soaring towards $9.6 billion, buoyed by the recent landmark acquisition of Ansys, the sale of a single IP division represents a manageable portfolio adjustment. The move aligns with a disciplined strategy to optimize its vast portfolio and direct investment toward areas with the highest potential for growth and margin, particularly in the complex domain of AI-powered system design.

GlobalFoundries' Bold Leap into 'Physical AI'

The acquisition is a cornerstone of GlobalFoundries' evolving strategy to become a leader in what it terms "Physical AI"—the integration of AI capabilities directly into physical devices at the edge. By acquiring Synopsys' processor IP, GF is moving significantly up the value chain. Instead of simply manufacturing wafers based on designs from other companies, it can now offer a powerful combination of licensable processor IP, development tools, and its own advanced manufacturing processes.

This vertical integration is intended to lower the barrier to entry for companies developing next-generation AI and compute applications. GlobalFoundries plans to merge the newly acquired ARC portfolio with its existing MIPS technologies, which also has a strong RISC-V offering, creating a comprehensive and highly competitive suite of processor IP.

"This acquisition doubles down on our commitment to advancing our leadership in Physical AI," stated Tim Breen, CEO of GlobalFoundries. "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." Breen emphasized that the move will strengthen GF's technology roadmap and enable it to deliver end-to-end solutions for the expansion of AI into the physical world.

Reshaping the RISC-V and Embedded IP Market

The transaction is poised to send ripples across the competitive processor IP market, which has long been dominated by a few key players. By consolidating the MIPS and ARC portfolios, GlobalFoundries instantly becomes a more formidable force, particularly within the rapidly expanding open-standard RISC-V ecosystem. The ARC-V cores from Synopsys are a significant addition to GF's existing RISC-V assets through MIPS.

This creates a powerful alternative for chip designers who might otherwise license technology from competitors like Arm or SiFive. GlobalFoundries can now offer a compelling one-stop-shop proposition: license our proven, low-power processor IP for your AI edge device, use our integrated toolchains to design it, and then manufacture the final silicon in our fabs. This integrated model could be particularly attractive for customers in the automotive, IoT, and consumer electronics sectors who are looking to accelerate their time-to-market for new AI-enabled products.

The consolidation strengthens GF's ability to provide custom silicon solutions and could intensify competition by offering a unique blend of IP licensing and manufacturing services that few rivals can match.

The Path Forward

Both companies have stressed their commitment to ensuring a seamless transition for the teams, partners, and, most importantly, the existing customers of the Synopsys Processor IP business. Until the transaction officially closes, the division will continue to operate as part of Synopsys, with a focus on uninterrupted service and continued innovation.

The deal is expected to be completed in the second half of the 2026 calendar year. Its finalization is contingent upon the satisfaction of customary closing conditions, which includes receiving all necessary regulatory approvals from relevant authorities. As the industry watches this strategic realignment unfold, the integration of ARC's deep processor expertise into GlobalFoundries' manufacturing prowess will be a key development to monitor in the global race for AI leadership.