Synopsys has entered a definitive agreement to sell its Processor IP Solutions business to GlobalFoundries. The deal includes ARC CPU, DSP, and NPU IP portfolios, along with development tools like ASIP Designer.

The move allows Synopsys to sharpen focus on interface and foundation IP, particularly in high-growth areas like AI and cloud-to-edge computing. CEO Sassine Ghazi emphasized strategic realignment toward higher-value opportunities.

GlobalFoundries sees the acquisition as a way to bolster its Physical AI strategy. CEO Tim Breen noted the combination of Synopsys IP with GF’s manufacturing will accelerate customer innovation in next-gen compute and AI-enabled devices. The deal is expected to close in the second half of 2026.