Synopsys and Amazon sign multi-year IP deal worth more than $1B
Synopsys has signed a multi-year agreement with Amazon, worth more than $1 billion according to the company, to supply silicon IP and AI-powered engineering software for Amazon's custom chips and AWS infrastructure. Amazon becomes the lead customer for Synopsys' expanding application-optimized IP business.
- Synopsys and Amazon signed a multi-year agreement worth $1B+, announced September 30, 2026.
- Amazon is the lead customer for Synopsys' application-optimized silicon IP.
- Synopsys is moving to a license-plus-royalty model that scales with production volumes.
- The companies will apply agentic AI and AI-powered EDA to chip and system design, and optimize software on Trainium and Graviton.
- Synopsys will adopt Amazon EC2, cloud storage and Amazon Bedrock for its own development.
What the agreement covers
Synopsys, listed on Nasdaq as SNPS, announced the deal on September 30, 2026. According to the company, the agreement builds on more than 15 years of collaboration with Amazon and widens Amazon's use of Synopsys technology in several areas.
Amazon will use Synopsys' application-optimized silicon IP, and will also expand its use of Synopsys EDA, simulation and analysis (S&A), and agentic AI technologies. Amazon's chip portfolio includes Nitro for cloud security, network and storage, Graviton for general-purpose computing, and Trainium for AI training and inference workloads.
Synopsys and Amazon will also work to accelerate multiphysics solutions on Trainium and Graviton.
A new business model for Synopsys IP
Synopsys describes the multi-year deal, valued at $1B+, as an expansion of its silicon IP business to meet growing demand for application-optimized IP. The company says it is evolving to a license-plus-royalty model, which it aims to make valuable for both companies as production volumes grow.
Sassine Ghazi, president and CEO of Synopsys, said: "As we expand into application-optimized IP solutions, we're proud to have Amazon as our lead customer for this next phase of growth."
AI across the engineering workflow
The companies plan to collaborate on applying AI across silicon-to-system engineering workflows. According to Synopsys, this includes deploying its AI-powered EDA, physics-based simulation and agentic AI solutions, and developing custom agentic AI capabilities. The goal is to help Amazon's engineering teams design, analyze, optimize and validate complex chips and systems more efficiently.
Peter DeSantis, SVP, foundational AI, custom silicon, quantum computing at Amazon, said purpose-built chips "deliver better performance at lower cost because they're designed for exactly what customers need." He added that as chip designs grow more ambitious and AI reshapes engineering, Synopsys helps Amazon "move faster across the design cycle."
Synopsys moves its own development to AWS
The collaboration runs in both directions. Synopsys will use AWS services to speed up its own product development, adopting Amazon EC2 and cloud storage services for its IP and EDA tools development. It will also use Amazon Bedrock to build and deploy AI applications and agents. In addition, the two companies will partner to optimize Synopsys' software on Trainium and Graviton.
Ghazi said that combining Amazon's strength in AI infrastructure and custom silicon with Synopsys' strength in silicon IP, EDA and multiphysics solutions can "dramatically increase the productivity of our teams and shape the future of AI-native engineering."
What it means
For Synopsys, the deal gives its silicon IP business a named lead customer and a royalty-linked revenue structure tied to production volumes. For Amazon, it extends a long-running tooling relationship into IP and agentic AI for chip design. The release contains forward-looking statements, and Synopsys notes that actual results may differ from the anticipated benefits it describes.
