Synopsys (SNPS) Sells Processor IP Business to GlobalFoundries (GFS)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: seekingalpha
- Transaction Overview: Synopsys has entered into an agreement to sell its Processor IP Solutions business to GlobalFoundries, marking a strategic shift for Synopsys, although financial terms remain undisclosed.
- Technology Integration: This deal allows GlobalFoundries to acquire Synopsys' ARC-V (RISC-V) and ARC CPU IP, DSP IP, and Neural Network Processing Unit (NPU) IP, which, combined with GF's advanced manufacturing capabilities, is expected to accelerate customer innovation in next-generation compute and AI applications.
- Market Impact: While this transaction is not material to Synopsys' business, it underscores GlobalFoundries' strategic commitment to Physical AI, potentially influencing market expectations for both companies in the long term.
- Completion Timeline: The transaction is expected to be finalized in the second half of 2026, indicating a long-term planning approach for future technological collaboration that may create new growth opportunities for both parties.
Analyst Views on GFS
Wall Street analysts forecast GFS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for GFS is 38.88 USD with a low forecast of 35.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 44.220
Low
35.00
Averages
38.88
High
45.00
Current: 44.220
Low
35.00
Averages
38.88
High
45.00
About GFS
GlobalFoundries Inc. is a semiconductor manufacturer. The Company offers a range of mainstream wafer fabrication services and technologies. It manufactures a range of semiconductor devices, including microprocessors, mobile application processors, baseband processors, network processors, radio frequency modems, microcontrollers, and power management units. Its specialized foundry manufacturing processes include a library consisting of qualified circuit-building block designs (known as IP titles or IP blocks), and advanced transistor and device technology. The Company's differentiated technology platforms include radio frequency (RF) silicon-on-insulator (SOI), Fin Field-Effect Transistor (FinFET), FDX, Complementary Metal-Oxide Semiconductor (CMOS), Silicon Germanium (SiGe), Gallium Nitride (GaN), Bipolar-CMOS-DMOS (BCD), and Silicon Photonics (SiPh).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
