GlobalFoundries announced a definitive agreement to acquire Synopsys’ ARC Processor IP Solutions business, adding the ARC‑V, ARC‑Classic, ARC‑VPX‑DSP and ARC‑NPX NPU product lines to its portfolio. The deal also includes Synopsys’ ASIP Designer and ASIP Programmer tools, which will be merged with GlobalFoundries’ MIPS unit to create a comprehensive processor IP suite tailored for physical‑AI applications.
The transaction is expected to close in the second half of 2026 and will be integrated with MIPS, a GlobalFoundries company that already supplies RISC‑V IP for physical‑AI platforms. By combining Synopsys’ high‑performance, mid‑range and ultra‑low‑power compute and AI cores with GlobalFoundries’ manufacturing capabilities, the company aims to lower the barrier for customers to adopt advanced AI silicon and accelerate its own physical‑AI roadmap.
GlobalFoundries’ Q3 2025 revenue of $1.688 billion and a gross margin of 24.8% illustrate the company’s solid financial footing and its capacity to fund the acquisition. The divestiture is not material to Synopsys’ overall business, and the deal value has not been disclosed. Regulatory approvals will be required, but the specific authorities and jurisdictions have not been identified.
Tim Breen, CEO of GlobalFoundries, said the 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.”
Sassine Ghazi, President and CEO of Synopsys, noted that the divestiture allows Synopsys to focus on its core interface and foundation IP, while MIPS CEO Sameer Wasson highlighted the synergy: “MIPS and ARC is a great marriage. As the world automates and becomes more intelligent, the requirements on processing are low power, lower cost, more AI processing. So it’s natural to combine two of the world’s most successful RISC entities to deliver compelling solutions in a physical AI world.”
The acquisition positions GlobalFoundries more competitively in the rapidly evolving AI chip market, potentially challenging other IP providers and integrated device manufacturers. By expanding its IP offering beyond traditional specialty foundry services, GlobalFoundries can deliver end‑to‑end solutions for wearables, robotics, AI‑driven consumer devices and other high‑growth segments, reinforcing its differentiated technology strategy and supporting future revenue and margin expansion.
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