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Synopsys (SNPS) has a fresh $1 billion reason for investors to pay attention as the chip-design software provider expands its relationship with Amazon (AMZN). Last week, Synopsys announced a multiyear agreement worth more than $1 billion with Amazon to expand the use of its semiconductor intellectual property (IP) for Amazon’s custom silicon. The deal also broadens collaboration around Synopsys’ electronic design automation, simulation and analysis, and artificial intelligence (AI)-powered engineering technologies.
The agreement is particularly significant as Amazon continues developing purpose-built chips, including its Graviton processors and Trainium AI chips, to support its cloud and AI infrastructure. Synopsys said Amazon will serve as its lead customer for application-optimized silicon IP as the company evolves toward a license-plus-royalty model, potentially allowing revenue from the IP business to scale with production volumes.
