Synopsys Will Take a Royalty on Amazon's Chips and Sell GPT-Synopsys: Ravi Subramanian

Synopsys is moving from flat IP licensing to Arm-style royalties on hyperscaler custom chips, starting with a $1B+ Amazon deal.

• Amazon royalty deal: Synopsys signed a multi-year, $1B+ application-optimized IP agreement with Amazon covering interfaces like PCIe, HBM, LPDDR, UCIe, and Ethernet for chips such as Trainium, Graviton, and Nitro.
• New business model: Synopsys is shifting from license-fee-only ("Factory 1") standards IP to a three-part model—license fee, customization fee, and royalty—for custom "Factory 2" application-optimized IP, mirroring Arm's royalty approach.

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