Amazon Puts Muscle Behind Synopsys' Custom Silicon Plans
Amazon has signed a multi-year strategic deal with Synopsys worth over $1 billion to accelerate the development of custom silicon for AI-powered products and cloud infrastructure. The agreement expands Synopsys' silicon IP business and introduces a license-plus-royalty model that aligns value with production volumes.
Under the partnership, Synopsys will use AWS services to speed up product development and optimize its software for Amazon's Trainium and Graviton chips. Amazon will serve as Synopsys' lead customer for application-optimized IP. Synopsys engineers will also use Amazon EC2 and Amazon Bedrock to accelerate their work.
The deal plans to apply AI across silicon-to-system engineering workflows, using Synopsys' AI-powered EDA, physics-based simulation, and agentic AI solutions. The companies will also develop custom agentic AI tools to help Amazon's engineering teams design, analyze, optimize, and validate complex chips and systems more efficiently.