GlobalFoundries (NASDAQ: GFS) entered into a definitive agreement to acquire Synopsys’ ARC Processor IP Solutions business, a move that will add a suite of configurable RISC‑V and proprietary ARC processors to its portfolio. The deal includes the ARC‑V, ARC‑Classic, ARC VPX‑DSP and ARC NPX NPU families, as well as the ASIP Designer and ASIP Programmer tools that enable customers to design custom instruction‑set processors.
The acquisition brings engineering teams and product lines that have been used in a range of embedded and AI‑edge applications. By integrating these assets with its recently acquired MIPS subsidiary, GlobalFoundries aims to create a unified processor IP platform that supports both traditional RISC‑V cores and Synopsys’ ARC architecture, thereby broadening its “Physical AI” roadmap and offering customers a more flexible set of building blocks for low‑power, high‑performance AI workloads.
Synopsys will retain its broader design‑IP portfolio, including interface and foundation IP that drives its core revenue streams. The divestiture is described by Synopsys as “not material to its business,” underscoring the company’s intent to focus on high‑margin, high‑growth IP segments while shedding a legacy processor line that has seen declining demand in recent quarters.
The transaction’s financial terms have not been disclosed, but the lack of a material impact on Synopsys’ earnings suggests a modest valuation. GlobalFoundries, which reported Q3 2025 revenue of $1.688 billion and a 0.44 % diluted EPS, is positioning the acquisition to accelerate its entry into the AI‑edge market, where competition from companies such as NVIDIA, Intel, and emerging fabless players is intensifying.
Management comments highlight the strategic fit: GlobalFoundries CEO Tim Breen said the deal “doubles down on our commitment to advancing Physical AI” and will “lower the barrier for customer adoption of essential technologies.” Synopsys CEO Sassine Ghazi noted the transaction “enhances our focus on interface and foundation IP” and that GlobalFoundries will be a “future steward” for the processor IP business.
The integration is expected to expand GlobalFoundries’ IP library, enabling customers to mix ARC and MIPS cores in a single silicon design and to leverage ASIP tools for rapid prototyping. This capability aligns with the company’s broader strategy to offer end‑to‑end solutions for AI‑enabled devices, from edge sensors to data‑center accelerators.
For Synopsys, the divestiture frees resources that can be redirected toward its high‑growth Design Automation and IP segments, which have driven a 37.8 % revenue increase in Q4 2025. The company’s focus on interface and foundation IP is expected to sustain its profitability as it continues to invest in AI‑driven design tools.
In sum, the acquisition represents a significant shift for both firms: GlobalFoundries broadens its processor IP offering to support a wider range of AI workloads, while Synopsys sharpens its portfolio around core IP that underpins its long‑term growth strategy.
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