GlobalFoundries has announced a major move to boost its Physical AI plans. In the opening statement, GlobalFoundries confirmed it will buy Synopsys’ processor business. The deal aims to expand its ability to build smarter and more efficient chips. Moreover, the agreement supports faster development for future AI devices.
The announcement came on January 14, 2026, from Malta, New York. GlobalFoundries said it signed a final agreement to acquire Synopsys’ ARC Processor IP Solutions unit. This purchase includes experienced engineers and designers. As a result, the company expects to strengthen its custom chip offerings. In addition, the deal supports its long-term Physical AI roadmap.
Through this acquisition, GlobalFoundries will gain several processor product lines. These include ARC-V, ARC-Classic, ARC VPX-DSP, and ARC NPX NPU technologies. The deal also brings special processor design tools. These tools help customers tailor chips for specific tasks. Therefore, customers can move from design to production faster.
Once the deal closes, GlobalFoundries will merge these assets with MIPS. MIPS already operates as a GlobalFoundries company. Together, they will offer a wider processor portfolio. This combined setup will focus on Physical AI uses. These uses include real-world machines that sense, decide, and act. As a result, clients can license designs and software from one source.
The ARC technology adds strong computing options. It supports high performance, mid-level tasks, and very low power needs. Because of this range, GlobalFoundries can serve many markets. These markets include wearables, robots, and smart consumer devices. In addition, advanced AI chips will benefit from this flexibility.
GlobalFoundries also gains access to a strong patent base. The acquired business brings global customers and proven engineering skills. Therefore, innovation should move faster across product lines. Furthermore, the company expects better energy use in future chip designs. This matters as devices demand more power efficiency.
Tim Breen, chief executive of GlobalFoundries, spoke about the deal’s importance. He said the company is reinforcing its leadership in Physical AI. By joining ARC and MIPS technologies, customers face fewer barriers. Consequently, they can adopt new AI tools faster. Breen added that the move supports complete solutions from design to production.
Meanwhile, Synopsys will keep its broader design business. The company will continue developing other chip-related technologies. These include memory, security, and connection designs. Synopsys leaders said the sale sharpens their focus. Therefore, they can invest more in high-value design areas.
Sassine Ghazi, president and CEO of Synopsys, shared his view. He said the transaction helps Synopsys strengthen its core offerings. He also praised GlobalFoundries as a future caretaker of the processor unit. According to Ghazi, customers will benefit from healthy competition. This competition supports innovation worldwide.
The acquisition still requires regulatory approvals. Both companies expect completion in the second half of 2026. Until then, they plan close cooperation. Their goal is a smooth transition for staff, customers, and partners. Therefore, ongoing projects should continue without disruption.
GlobalFoundries operates chip factories across the United States, Europe, and Asia. The company supplies chips used in cars, phones, and connected devices. It focuses on secure and reliable production. Meanwhile, MIPS supports open processor designs for Physical AI. Together, these units aim to shape the future of smart machines.
