Synopsys and Amazon Web Services have signed a multi-year agreement worth over $1 billion for AWS to license chip design intellectual property from Synopsys. The deal will see AWS utilize Synopsys' blueprints for specific chip designs, while Synopsys will adopt AWS cloud services and AI platforms.
The significant licensing deal highlights the growing demand for specialized chip designs and the increasing role of intellectual property licensing in the semiconductor industry. It also underscores AWS's continued investment in custom silicon development to enhance its cloud offerings and AI capabilities.
Synopsys and Amazon Web Services announced on Wednesday that Amazon.com's cloud computing unit has entered into a multi-year agreement valued at over $1 billion to license chip design intellectual property from Synopsys. Synopsys provides software for designing complex computer chips and also licenses blueprints for chip components. This business generated $1.75 billion in revenue in its most recent fiscal year.
The Synopsys design licensing business, which initially focused on common chip parts, has expanded to more complex designs, including computing cores. The current deal with AWS will specifically focus on blueprints optimized for particular chip types. AWS designs its own chips, such as its Graviton central processors and Trainium AI chips, though the specific chips that will utilize Synopsys' blueprints were not disclosed.
In addition to the licensing agreement, Synopsys will also adopt AWS computing and storage services and utilize Amazon Bedrock for building and deploying AI applications.
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