Synopsys And Amazon Sign More Than $1 Billion Multi-Year Custom Silicon Agreement

By Amit Chowdhry ● Yesterday at 10:32 PM

Synopsys and Amazon have entered into a multi-year agreement valued at more than $1 billion focused on custom silicon, cloud infrastructure and AI-powered engineering.

The agreement will expand Amazon’s use of Synopsys silicon intellectual property to include application-optimized silicon IP, with Amazon serving as the lead customer for the expanded offering.

Synopsys is also moving toward a license-plus-royalty business model, giving both companies the potential to benefit as production volumes increase.

The collaboration builds on more than 15 years of work between Amazon and Synopsys. Amazon will expand its use of Synopsys electronic design automation, simulation and analysis technologies, and agentic AI tools across its silicon engineering efforts.

The companies will also work together to accelerate Synopsys multiphysics software on AWS Trainium and Graviton processors and apply AI across silicon-to-system engineering workflows.

Synopsys, meanwhile, will adopt Amazon EC2, AWS cloud storage and Amazon Bedrock to accelerate development of its own IP and EDA tools and build AI applications and agents.

KEY QUOTES:

“Amazon has invested in custom silicon for more than a decade, and it has fundamentally changed what’s possible for AWS and our customers. From Graviton to Trainium, purpose-built chips deliver better performance at lower cost because they’re designed for exactly what customers need. As our chip designs grow more ambitious and AI reshapes the engineering process itself, Synopsys helps us move faster across the design cycle, helping us deliver more capable, efficient computing for customers worldwide.”

Peter DeSantis, SVP of Foundational AI, Custom Silicon and Quantum Computing at Amazon

“Special purpose silicon is at the heart of AWS innovation. As we expand into application-optimized IP solutions, we’re proud to have Amazon as our lead customer for this next phase of growth. More broadly, by combining Amazon’s leadership in AI infrastructure and custom silicon with Synopsys’ leadership in silicon IP, EDA and Multiphysics solutions, we can dramatically increase the productivity of our teams and shape the future of AI-native engineering.”

Sassine Ghazi, President and CEO of Synopsys

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