January 20, 2026 /SemiMedia/ — GlobalFoundries said it has signed a definitive agreement to acquire the ARC processor IP business from Synopsys, a move that will extend the foundry’s reach from manufacturing into processor and system-level solutions.

The deal includes the full ARC processor portfolio, covering ARC-V, classic cores, DSPs and neural network processors, along with related ASIP development tools. The business and engineering team will be integrated into MIPS, where the technology will be positioned as a processor IP platform focused on physical AI applications.

As AI workloads move beyond cloud data centers into edge and real-world systems, chipmakers are facing growing demand for power-efficient and customizable compute architectures. GlobalFoundries said combining ARC processor IP with its differentiated manufacturing processes will help customers design chips for applications such as wearables, robotics and specialized AI devices.

The company said the acquisition is aimed at lowering the technical barriers for customers adopting advanced processor and AI technologies, while also shortening development cycles by offering tighter integration between IP, software and manufacturing.

Synopsys said it will continue to invest in its core design IP businesses, including logic libraries, security IP and interface solutions. The transaction is subject to regulatory approvals and other customary conditions, and is expected to close in the second half of 2026.