Synopsys has agreed to sell its processor IP solutions business to GlobalFoundries (GF) for an undisclosed price.

The Synopsys Processor IP portfolio includes ARC-V (RISC-V) and ARC CPU intellectual property, digital signal processor (DSP) IP, neural network processing unit (NPU) IP, and associated software development tools such as the ARC MetaWare Development Toolkits.

Also included are the ASIP Designer and ASIP Programmer tools for automating application-specific instruction-set processor (ASIP) design and implementation.

Both companies stated they will support current Processor IP customers through the transition period without disruption.

Following the completion of the sale, Synopsys plans to focus its remaining design IP portfolio on logic libraries, embedded memories, interface IP, security IP, and subsystems.

The transaction will allow Synopsys to further concentrate resources on its interface and foundation IP business. It will also enable the company to pursue opportunities in AI applications across sectors such as high-performance computing, mobile devices, automotive systems, and consumer products.

Synopsys president and CEO Sassine Ghazi said: “GF will be an excellent future steward for the processor IP solutions business, and we are committed to a smooth transition for the team, customers and partners.”

Until regulatory approval is secured and the transaction closes, the processor IP solutions business will remain under Synopsys’ management with ongoing operations targeting product delivery and customer support.

Synopsys described the transaction as immaterial to its overall business performance.

The company said it will continue providing electronic design automation solutions optimised for processor implementation, verification, and signoff workflows across the semiconductor industry.

For GlobalFoundries, the acquisition is expected to support the company’s physical AI roadmap, including its subsidiary MIPS, and expand its capabilities in custom silicon solutions. MIPS was acquired by GlobalFoundries in August 2025.

After the transaction closes, the acquired assets and teams will be integrated with MIPS to provide a broader processor IP portfolio targeted at physical AI applications. The expanded portfolio is intended to support IP licensing and software offerings and help reduce time-to-market for GlobalFoundries’ customers.

GlobalFoundries stated that integrating Synopsys’ ARC technologies, including high-performance, mid-range, and ultra-low-power compute and AI cores, will enable scalable, energy-efficient processing solutions.

The company also noted that the acquisition adds patents, a global customer base, and engineering expertise, which it expects will support solutions for wearables, robotics, AI-enabled consumer products, and advanced AI silicon.

GlobalFoundries CEO Tim Breen said: “This acquisition doubles down on our commitment to advancing our leadership in Physical AI. 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.”

The deal is expected to close in the latter half of this year subject to receipt of regulatory approvals and other customary closing conditions.