Synopsys has sold its processor IP solutions business to GlobalFoundries (GF) for an undisclosed amount.

The acquisition will bolster GF’s leadership in the physical AI space and enhance its compute capabilities, the company said in a statement, adding that it would also enable the chipmaker to expand its RISC-V and AI portfolio to support custom silicon development.

Separately, Synopsys said the sale would allow it to focus on extending its leadership in interface and foundation IP and pursue the “highest-value, AI-driven opportunities from cloud to Edge."

The transaction is expected to close in the second half of 2026, subject to customary closing and regulatory conditions. The two companies said they will work together to ensure processor IP customers are fully supported through the transition, without disruption.

Under the terms of the deal, GF will acquire Synopsys processor IP portfolio, which consists of the company’s ARC-V (RISC-V) and ARC CPU IP, DSP IP, neural network processing unit IP, in addition to related software development tools, and Synopsys' ASIP Designer and ASIP Programmer tools for application-specific instruction-set processors.

Upon closure of the deal, these assets and teams will be integrated with MIPS, a GF company, to deliver "a comprehensive processor IP suite, especially tailored for physical AI applications," the chipmaker said in its own statement.

Synopsys will retain its broad design IP portfolio, comprising logic libraries, embedded memories, interface IP, security IP, and subsystems.

"We are focusing our IP resources and roadmap to further our leadership in essential interface and foundation IP while winning new, high-value opportunities that advance our position as the leading provider of engineering solutions from silicon to systems," said Sassine Ghazi, president and CEO of Synopsys. "GF will be an excellent future steward for the processor IP solutions business, and we are committed to a smooth transition for the team, customers, and partners."

Tim Breen, CEO of GlobalFoundries, added: "This 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.

"This move will strengthen our differentiated technology roadmap and position GF to deliver end-to-end solutions for our customers that will support the expansion of AI-enabled devices into the physical world."