Synopsys signs $1B+ multi-year custom silicon IP agreement with AWS

Investing.com — Synopsys Inc (NASDAQ:SNPS) stock rose over 3% in Wednesday trade after the chip design software maker announced a multi-year deal with Amazon Web Services worth more than $1 billion to license its silicon intellectual property. The agreement establishes Amazon.com Inc (NASDAQ:AMZN) as the lead customer for Synopsys’ expanded offering of application-optimized IP blueprints.

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Synopsys produces electronic design automation software used by major chipmakers to lay out billions of transistors on silicon, alongside a growing IP licensing business that generated $1.75 billion in revenue during its most recent fiscal year. While Synopsys historically focused on licensing standard chip components, the new arrangement expands its reach into more complex, custom designs suited for specific cloud workloads.

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