Electronic Engineering Times Global, January 15 – GlobalFoundries, a leading global semiconductor manufacturer, announced on January 14 that it has entered into a definitive agreement with Synopsys to acquire the latter’s ARC processor IP solutions business.

The transaction covers product lines including ARC-V, ARC-Classic, ARC VPX-DSP and ARC NPX neural network processors, as well as domain-specific instruction-set tools such as ASIP Designer and ASIP Programmer. Upon completion of the acquisition, these assets will be integrated into MIPS, a subsidiary of GlobalFoundries, forming a comprehensive portfolio of processor IP solutions.

Under the terms of the agreement, GlobalFoundries will take over the engineering and design teams from Synopsys’ ARC Processor IP division. The transaction is still subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the second half of 2026. Following the transaction, Synopsys will continue to advance its core IP business, which includes product portfolios such as logic libraries, embedded memory, interface IP, and security IP.

Tim Breen, Chief Executive Officer of GlobalFoundries, stated that this acquisition will strengthen the company’s leading position in the Physical AI space. By integrating ARC IP, MIPS technologies and advanced manufacturing capabilities, GlobalFoundries will be able to deliver end-to-end solutions to its customers. Sassine Ghazi, President of Synopsys, commented that the transaction will enable the company to focus more on interface and foundational IP segments, while GlobalFoundries will serve as the ideal steward for the processor IP business.

This acquisition marks another key strategic move by GlobalFoundries following its acquisition of MIPS, which was finalized in August 2025. The integrated product portfolio will enhance customer collaboration through IP licensing and software tools, with a focus on expanding Physical AI applications such as wearables, robotics, and AI-powered consumer devices. Analysts believe that this strategy will help GlobalFoundries’ customers shorten product time-to-market and accelerate the development of custom chips. Some analysts point out that the transaction reflects the trend toward specialized division of labor across the industry chain. GlobalFoundries will focus on lowering technical barriers for customers by integrating design IP and manufacturing capabilities, while Synopsys will concentrate on high-growth potential core IP segments. Both companies stated that they will collaborate to ensure a smooth business transition and maintain continuous service for customers and partners.