GlobalFoundries Advances Physical AI Strategy with ARC Deal

Engineers working on semiconductor designs symbolizing GlobalFoundries’ growth in Physical AI capabilities.

New Delhi, India, January 16, 2026 – GlobalFoundries has announced a major step forward in its pursuit of leadership in Physical AI. The company revealed plans to acquire Synopsys’ ARC Processor IP Solutions business. This acquisition will include engineering teams, product lines, and specialized software tools. By bringing these assets under its umbrella, GlobalFoundries aims to strengthen its roadmap for custom silicon and expand its RISC-V and AI portfolio.

The deal covers several well-known processor families, including ARC-V, ARC-Classic, ARC VPX-DSP, and ARC NPX NPU. It also includes advanced tools such as ASIP Designer and ASIP Programmer. Once the acquisition closes, these technologies and teams will be integrated with MIPS, a GlobalFoundries company. Together, they will deliver a comprehensive suite of processor IP designed specifically for Physical AI applications. Customers will benefit from faster development cycles and improved access to IP licensing and software.

The integration of Synopsys’ ARC technologies is expected to provide scalable and energy-efficient solutions. These cores range from high-performance to ultra-low power, making them suitable for a wide variety of uses. From wearables and robotics to consumer devices and advanced AI silicon, the expanded portfolio will support innovation across industries. With Synopsys’ strong patent base and global customer network, GlobalFoundries will gain both technical depth and market reach.

Tim Breen, CEO of GlobalFoundries, emphasized the importance of this move. He stated that combining Synopsys’ ARC IP with MIPS technologies and GF’s manufacturing capabilities will lower barriers for customers. Breen explained that the acquisition will help innovators bring new AI-enabled products to market more quickly. He added that the deal strengthens GF’s technology roadmap and positions the company to deliver end-to-end solutions for the next generation of computing.

Synopsys, meanwhile, will continue to focus on its broader design IP portfolio. This includes logic libraries, embedded memories, interface IP, and security IP. Sassine Ghazi, president and CEO of Synopsys, said the transaction allows Synopsys to sharpen its focus on foundation IP while pursuing new opportunities. He expressed confidence that GlobalFoundries will be a strong steward of the processor IP business, ensuring customers worldwide benefit from healthy competition and continued innovation.

The acquisition is subject to regulatory approvals and other closing conditions. It is expected to be finalized in the second half of 2026. Both companies have pledged to work closely to ensure a smooth transition for employees, customers, and partners. This cooperation will help maintain stability while unlocking new opportunities for growth.

The industry already recognizes GlobalFoundries as a leading semiconductor manufacturer. Its products power industries ranging from automotive and mobile devices to communications infrastructure and the internet of things. With manufacturing sites across the United States, Europe, and Asia, GF provides a reliable supply chain for customers worldwide. The company emphasizes sustainability, security, and long-term partnerships in its operations.

MIPS, part of the GlobalFoundries family, plays a key role in advancing Physical AI. It specializes in RISC-V IP and software platforms that enable real-time, event-driven computing. MIPS technology supports industries such as aerospace, automotive, defense, enterprise infrastructure, and industrial robotics. By combining MIPS expertise with Synopsys’ ARC portfolio, GF will deliver Physical AI solutions at foundry scale.

This acquisition represents a significant milestone in the semiconductor industry, underscoring the rising importance of Physical AI, where computing power is embedded directly into devices that interact with the real world. As a result, companies like GlobalFoundries are strategically positioning themselves to lead in a market driven by the demand for smarter, more efficient products. By expanding its processor IP capabilities, GF is preparing to meet the evolving needs of customers who seek faster, more adaptable solutions.

The deal also reflects broader trends in the technology sector. Companies are increasingly seeking integrated solutions that combine hardware, software, and design expertise. With this acquisition, GlobalFoundries is not only expanding its portfolio but also reinforcing its role as a trusted partner for innovation. As the second half of 2026 approaches, all eyes will be on GF and Synopsys to see how this transition unfolds and how it shapes the future of Physical AI.

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