GlobalFoundries is acquiring Synopsys' processor IP business to step up its entry into the physical AI market. GlobalFoundries said on Jan. 14, local time, it signed a final agreement with Synopsys to acquire the ARC processor IP solutions business. The acquisition includes related engineering and design personnel.

The acquisition targets the physical AI market by strengthening the capabilities of its MIPS subsidiary in custom semiconductor solutions. Once the acquisition process is completed, the assets and personnel will be integrated into MIPS. GlobalFoundries will build a processor IP product lineup focused on physical AI applications. Expanded IP licensing and software capabilities will make it possible to shorten customers' product time to market.

The assets to be acquired include the processor product lineup ARC-V, ARC-Classic, ARC VPX-DSP and ARC NPX NPU. They also include application-specific instruction set tools such as ASIP Designer and ASIP Programmer. Synopsys' ARC technology spans high-performance, mid-range and ultra-low-power computing and AI cores.

GlobalFoundries has secured a patent portfolio and a global customer network. It plans to lead technology development in wearables, robotics, AI-based consumer electronics and advanced AI semiconductors. It will use proven engineering expertise to expand its RISC-V and AI portfolio.

GlobalFoundries Chief Executive Tim Breen said, "This acquisition sends a message that we will solidify GlobalFoundries' leadership in physical AI." He stressed, "By combining Synopsys' ARC IP, MIPS' technology capabilities, and GlobalFoundries' advanced manufacturing capabilities, we will lower the barriers to adoption so customers can more easily introduce the core technologies needed for next-generation computing and AI application innovation."

He added, "This move will strengthen GlobalFoundries' differentiated technology roadmap and position the company as a provider of end-to-end solutions for customers as AI technology expands into the physical world."

Synopsys President and Chief Executive Sassine Ghazi said, "Through this transaction, Synopsys will focus on strengthening leadership in core interface and foundation IP and seize high-value opportunities as a leading engineering solutions company spanning silicon to systems."

He said, "GlobalFoundries is an excellent partner to lead the processor IP business, and will enable customers worldwide to continue benefiting through healthy competition in the development and supply of processor IP solutions." The acquisition is expected to be completed in the second half of 2026, subject to regulatory approvals. Synopsys will maintain its existing design IP portfolio after the sale, including logic libraries, embedded memory, interface IP and security IP.