Synopsys agrees to sell processor IP business to GlobalFoundries

Synopsys Inc. (NASDAQ: SNPS) announced it entered a definitive agreement to sell its Processor IP Solutions business to GlobalFoundries (NASDAQ: GFS). The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.

The sale includes Synopsys' ARC-V RISC-V and ARC CPU IP, DSP IP, Neural Network Processing Unit IP, and related software development tools including ARC MetaWare Development Toolkits. The transaction also encompasses ASIP Designer and ASIP Programmer tools for application-specific instruction-set processor design.

"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, Synopsys president and CEO.

GlobalFoundries CEO Tim Breen stated the acquisition "doubles down on our commitment to advancing our leadership in Physical AI" by combining Synopsys' ARC IP with GlobalFoundries' manufacturing capabilities.

Synopsys will retain its design IP portfolio including logic libraries, embedded memories, interface IP, security IP, and subsystems. The company stated the transaction is not material to its business and did not disclose financial terms.

The companies said they will work together to ensure processor IP customers experience no disruption during the transition. Until closing, the processor IP business will continue operating as part of Synopsys.

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