Synopsys Expands Silicon IP Business With Amazon As Lead Customer — Multi-Year Deal Targets Custom Chips, AI Infrastructure

Synopsys Expands Silicon IP Business With Amazon As Lead Customer — Multi-Year Deal Targets Custom Chips, AI Infrastructure

Synopsys Inc. (SNPS) is expanding its silicon intellectual property business into application-optimized designs, with Amazon.com Inc. (AMZN) becoming the lead customer under a new multi-year agreement.

The deal broadens a 15-year relationship and increases Amazon’s use of Synopsys technology as the cloud provider builds its own processors for general computing and artificial intelligence (AI) workloads.

Silicon intellectual property (IP) refers to reusable components of a chip design. Under the agreement, Amazon will expand its use of Synopsys IP to include designs optimized for particular applications rather than relying only on more general-purpose building blocks.

At the time of this writing, SNPS stock traded nearly 3% higher, and AMZN stock was also marginally up.

Amazon Deepens Its Custom-Chip Work

Amazon already develops a range of purpose-built processors for Amazon Web Services. Its Graviton family handles general-purpose computing, while Trainium is designed for AI training…

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