GlobalFoundries to Acquire Synopsys ARC Processor IP Business
In a move that signals a significant restructuring of the semiconductor IP landscape, Synopsys and GlobalFoundries (GF) today announced a definitive agreement for GF to acquire Synopsys’ Processor IP Solutions business. The deal, which includes the ARC processor family and related software development tools, marks a pivotal moment for both companies as they sharpen their focus on the burgeoning Physical AI opportunity.
The transaction, expected to close in the second half of calendar year 2026, will see Synopsys’ Processor IP portfolio—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—move into the GlobalFoundries ecosystem. The transaction also includes Synopsys’ ASIP Designer™ and ASIP Programmer™ tools for automating the design and implementation of application-specific instruction-set processors (ASIPs).
GF’s announcement also calls out the included ARC product lines as ARC-V, ARC-Classic, ARC VPX-DSP, and ARC NPX NPU, and says that upon closing, these assets and expert teams will be integrated with MIPS, a GlobalFoundries company.
Synopsys: Shedding the Cores to Focus on the “Plumbing” of AI
For Synopsys, the divestiture looks like disciplined portfolio management. By offloading its processor business, Synopsys is doubling down on its leadership in interface and foundation IP.
“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.
This focus is more than just marketing speak. As AI chips become increasingly complex, the bottleneck is rarely the processor core alone; it’s the high-speed connectivity (PCIe, CXL, DDR) and the fundamental logic libraries that enable multi-die/chiplet architectures. Synopsys is positioning itself to be the indispensable provider of the “connective tissue” that powers AI from the cloud to the edge, while continuing to dominate the EDA software market where they optimize implementations for all processor ecosystems.
GlobalFoundries: Moving Up the Value Chain
For GlobalFoundries, this acquisition is an aggressive step toward becoming a platform provider rather than a pure-play foundry. By acquiring ARC and integrating it with MIPS, GF is building a more complete “Physical AI” stack.
Physical AI refers to the deployment of AI in the tangible world—wearables, robotics, automotive, and industrial IoT—where power efficiency and custom silicon are paramount. By owning the processor IP, GF can offer its customers more tightly integrated, end-to-end solutions, lowering the barrier to entry for companies that want to move quickly from concept to high-volume manufacturing.
“This acquisition doubles down on our commitment to advancing our leadership in Physical AI,” noted 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.”
Transaction Details and Timeline
Assets transferred: The Synopsys Processor IP portfolio includes ARC-V™ (RISC-V) and ARC® CPU IP, DSP IP, NPU IP, related software development tools including ARC MetaWare Development Toolkits, plus ASIP Designer™ and ASIP Programmer™. GF additionally describes the included ARC product lines as ARC-V, ARC-Classic, ARC VPX-DSP, and ARC NPX NPU.
- Impact on Synopsys: Synopsys says the transaction is not material to its business and that terms are not being disclosed.
- Closure: Anticipated in the second half of calendar year 2026, subject to customary closing conditions including regulatory approvals.
- Continuity: Synopsys will retain and continue to grow its design IP portfolio spanning logic libraries, embedded memories, interface IP, security IP, and subsystems.
- Continuity for customers: Synopsys and GF say they will work together to ensure Processor IP customers are supported through the transition without disruption.
TechArena Take
The divestiture of Synopsys’ Processor IP Solutions business fits the pattern of the “New Synopsys” story arc: a company increasingly defining itself as an engineering-solutions platform from silicon to systems, especially after Synopsys completed its acquisition of Ansys in July 2025.
Layer on the NVIDIA partnership news from December 1, 2025—where NVIDIA announced an expanded strategic partnership with Synopsys and disclosed a $2 billion investment in Synopsys common stock (at a stated purchase price of $414.79 per share)—and the strategic emphasis on simulation, digital twins, and AI-accelerated engineering workflows becomes even clearer.
For GF, this is a “Foundry 2.0” play. In a world where specialized AI silicon is the new gold, being “just” a manufacturer isn’t enough. By owning the IP (ARC and MIPS) and packaging it with software tools, GF is positioning itself to deliver more “foundry-ready” platforms—particularly for physical AI use cases where power, latency, and tight integration matter.
The industry is watching closely. This deal consolidates ARC and MIPS under one roof. If GF can successfully integrate these teams and maintain the neutrality required to keep ARC customers comfortable through the transition, it will have carved out a serious niche in the Physical AI era.
In a move that signals a significant restructuring of the semiconductor IP landscape, Synopsys and GlobalFoundries (GF) today announced a definitive agreement for GF to acquire Synopsys’ Processor IP Solutions business. The deal, which includes the ARC processor family and related software development tools, marks a pivotal moment for both companies as they sharpen their focus on the burgeoning Physical AI opportunity.
The transaction, expected to close in the second half of calendar year 2026, will see Synopsys’ Processor IP portfolio—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—move into the GlobalFoundries ecosystem. The transaction also includes Synopsys’ ASIP Designer™ and ASIP Programmer™ tools for automating the design and implementation of application-specific instruction-set processors (ASIPs).
GF’s announcement also calls out the included ARC product lines as ARC-V, ARC-Classic, ARC VPX-DSP, and ARC NPX NPU, and says that upon closing, these assets and expert teams will be integrated with MIPS, a GlobalFoundries company.
Synopsys: Shedding the Cores to Focus on the “Plumbing” of AI
For Synopsys, the divestiture looks like disciplined portfolio management. By offloading its processor business, Synopsys is doubling down on its leadership in interface and foundation IP.
“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.
This focus is more than just marketing speak. As AI chips become increasingly complex, the bottleneck is rarely the processor core alone; it’s the high-speed connectivity (PCIe, CXL, DDR) and the fundamental logic libraries that enable multi-die/chiplet architectures. Synopsys is positioning itself to be the indispensable provider of the “connective tissue” that powers AI from the cloud to the edge, while continuing to dominate the EDA software market where they optimize implementations for all processor ecosystems.
GlobalFoundries: Moving Up the Value Chain
For GlobalFoundries, this acquisition is an aggressive step toward becoming a platform provider rather than a pure-play foundry. By acquiring ARC and integrating it with MIPS, GF is building a more complete “Physical AI” stack.
Physical AI refers to the deployment of AI in the tangible world—wearables, robotics, automotive, and industrial IoT—where power efficiency and custom silicon are paramount. By owning the processor IP, GF can offer its customers more tightly integrated, end-to-end solutions, lowering the barrier to entry for companies that want to move quickly from concept to high-volume manufacturing.
“This acquisition doubles down on our commitment to advancing our leadership in Physical AI,” noted 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.”
Transaction Details and Timeline
Assets transferred: The Synopsys Processor IP portfolio includes ARC-V™ (RISC-V) and ARC® CPU IP, DSP IP, NPU IP, related software development tools including ARC MetaWare Development Toolkits, plus ASIP Designer™ and ASIP Programmer™. GF additionally describes the included ARC product lines as ARC-V, ARC-Classic, ARC VPX-DSP, and ARC NPX NPU.
- Impact on Synopsys: Synopsys says the transaction is not material to its business and that terms are not being disclosed.
- Closure: Anticipated in the second half of calendar year 2026, subject to customary closing conditions including regulatory approvals.
- Continuity: Synopsys will retain and continue to grow its design IP portfolio spanning logic libraries, embedded memories, interface IP, security IP, and subsystems.
- Continuity for customers: Synopsys and GF say they will work together to ensure Processor IP customers are supported through the transition without disruption.
TechArena Take
The divestiture of Synopsys’ Processor IP Solutions business fits the pattern of the “New Synopsys” story arc: a company increasingly defining itself as an engineering-solutions platform from silicon to systems, especially after Synopsys completed its acquisition of Ansys in July 2025.
Layer on the NVIDIA partnership news from December 1, 2025—where NVIDIA announced an expanded strategic partnership with Synopsys and disclosed a $2 billion investment in Synopsys common stock (at a stated purchase price of $414.79 per share)—and the strategic emphasis on simulation, digital twins, and AI-accelerated engineering workflows becomes even clearer.
For GF, this is a “Foundry 2.0” play. In a world where specialized AI silicon is the new gold, being “just” a manufacturer isn’t enough. By owning the IP (ARC and MIPS) and packaging it with software tools, GF is positioning itself to deliver more “foundry-ready” platforms—particularly for physical AI use cases where power, latency, and tight integration matter.
The industry is watching closely. This deal consolidates ARC and MIPS under one roof. If GF can successfully integrate these teams and maintain the neutrality required to keep ARC customers comfortable through the transition, it will have carved out a serious niche in the Physical AI era.
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