Synopsys returns focus to core IP business, as ARC and MIPS come together under GlobalFoundries
In a move that signals a major strategic pivot, Synopsys has agreed to sell its ARC Processor IP business to New York-based foundry vendor GlobalFoundries for an undisclosed sum.
The deal that is expected to close in the second half of 2026, will see the Sunnyvale-based EDA tool supplier’s Processor IP product lines — which include ARC-V (RISC-V) and ARC CPU IP, DSP IP, neural network processing unit IP, and all related software development tools — transferred to GF’s ecosystem. Additionally, GF will also acquire Synopsys’ ASIP Designer and ASIP Programmer tools for application-specific instruction-set processors.
Once the deal closes, the assets and engineering teams will be folded into GF’s MIPS operation, another RISC-V company the foundry acquired in August 2025.
“This acquisition doubles down on our commitment to advancing our leadership in Physical AI,” said Tim Breen, CEO of GlobalFoundries in a statement. “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. 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.”
What the industry is saying
Comments started pouring in within minutes of the announcement. While some opined that the deal will set MIPS on the path to extend leadership in not only RISC-V but also in the multi-architecture IP platform, other see GF’s back-to-back RISC-V acquisition as a calculated move to compete with Arm in compute subsystems.
The transaction is “one of the clearest signals yet” of the beginning of the Foundry 2.0 era, wrote Allyson Klein, tech analyst and principal at The TechArena. A concept first introduced by TSMC, Foundry 2.0 is a phase defined by deep integration of volume semiconductor manufacturing and packaging, assembly, and testing to meet the performance and scale demands of AI.
“When GlobalFoundries acquires Synopsys’ ARC Processor IP, they aren’t just buying a product line; they are building a vertically integrated engine for Physical AI,” Klein wrote.
In an interview with EE Times, MIPS CEO Sameer Wasson said that the coming together of ARC and MIPS is most opportune for creating a stronger end-to-end Physical AI platform for custom silicon for GF.
“MIPS and ARC is a great marriage,” he said. “As the world automates and the world becomes more intelligent, the requirements on processing are low power, lower cost, more AI processing. So it’s pretty natural putting two of the world’s most successful RISC entities together to go attack and deliver compelling solutions in a physical AI world. I think its intuitive.”
What Synopsys gains from the divestiture
For Synopsys, the move is more than just an exit from the processor IP market. It represents strategic portfolio management — and perhaps cost optimization.
Synopsys acquired its ARC processor portfolio through purchase of semiconductor IP company Virage Logic back in 2010. Over the years, it has invested in developing new products and technologies under the ARC banner. This begs the question, why abandon it now?
The simple answer is, shedding the Processor IP business allows Synopsys to focus on its core IP business and push deeper into its most critical growth areas, “while pursuing highest-value, AI-driven opportunities from cloud to edge,” the company said, hinting at its recent AI play in partnership with Nvidia, and broader effort to redefine itself as an engineering solutions company.
“This is a portfolio management exercise for us,” Neeraj Paliwal, senior VP for silicon IP product management said to EE Times. “There’s a simple thesis behind this transaction. The market for AI has grown leaps and bounds, for which there is a huge demand for our core IP, which includes foundation IP and interface IP. The foundation IP includes everything from cell libraries and embedded memory to I/O, OTP, PUF, and security. Interface IP is where we are seeing the biggest growth.”
With a slimmer portfolio and a narrower focus, it can now go all out on interface and foundation IP that are essential for AI, cloud, and edge applications. As Klein wrote, “By shedding its processor business, Synopsys removes a significant point of friction with its partner ecosystem. They can now focus entirely on being the indispensable provider of Interface IP and digital twin technologies that help automakers and AI companies “shift left” and reduce development time by up to 12 months.”
Synopsys said that it will continue to own and grow its design IP portfolio, which currently includes logic libraries, embedded memories, interface IP, security IP, and subsystems.
With chips becoming smaller and more complex, high-speed interconnects and logic libraries are the forefront of enabling new architectures. By holding on to these assets, Synopsys has a clear opening to push deeper into this space and tap into markets across HPC, data center, edge AI, storage, cloud, mobile, consumer, microcontroller, AIoT, automotive, and industrial applications
“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,” Sassine Ghazi, CEO of Synopsys said.
