Synopsys, Amazon Web Services sign chip design licensing deal worth more than $1 billion

By Reuters News

By Stephen Nellis

- Synopsys SNPS.O and Amazon Web Services on Wednesday said that Amazon.com's AMZN.O cloud computing unit has entered a multi-year deal worth more than $1 billion to license chip design intellectual property from Synopsys.

Synopsys makes software for designing complex computer chips, helping firms such as Nvidia NVDA.O and Intel INTC.O decide how to lay out tens of billions of transistors on a few square millimeters of silicon. But it also increasingly licenses blueprints for parts of a chip, a business that brought in $1.75 billion in revenue in its most recent fiscal year and where it competes against Arm Holdings O9Ty.F.

In its early stages, the Synopsys design licensing business focused on common parts of chips where customers found it more cost-effective to license blueprints from Synopsys than to design those parts from scratch. But Synopsys has moved into more complex designs such as computing cores and said the deal on Wednesday will focus on blueprints optimized for specific types of chips.

AWS designs a variety of its own chips, including its Graviton central processors and its Trainium AI chips. The two parties did not specify which AWS chips will use Synopsys blueprints.

As part of the deal, Synopsys will also adopt AWS computing and storage services, as well as Amazon Bedrock to build and deploy AI applications.

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.