Amazon Becomes Lead Customer for Synopsys' Application-Optimized Silicon IP

Synopsys has announced a multi-year agreement worth over $1 billion with Amazon. The deal, confirmed on September 30, 2026, makes Amazon the lead customer for Synopsys' new application-optimized silicon IP.

This type of IP is designed around specific workloads and system architectures. It's a departure from the generic interface IP that Synopsys has historically sold. The agreement spans four areas: application-optimized silicon IP, electronic design automation software, simulation and analysis tools, and agentic AI technologies for engineering workflows.

Synopsys will earn revenue through a license-plus-royalty model, which ties part of its earnings to production volume. This means Synopsys will benefit directly from Amazon's growth in custom-silicon deployments. The deal also includes a reciprocal cloud commitment, with Synopsys expanding its use of AWS infrastructure.