GlobalFoundries has expanded its response to the physical AI market from manufacturing to the design and software sectors by completing the acquisition of Synopsys' ARC processor IP business unit. As AI computing spreads to edge environments such as automotive and industrial systems, foundry companies are moving to secure not only production capabilities but also the ability to support customized semiconductor design.

GlobalFoundries announced on the 2nd (local time) that it has completed the acquisition of Synopsys' ARC processor IP solutions business unit and integrated the business into its subsidiary, MIPS. The ARC business unit, which possesses processor IP, development tools, and custom processor design technology, has been incorporated into GlobalFoundries' physical AI portfolio.

With this acquisition, MIPS has added ARC's CPU IP, AI cores, and software development environment to its existing RISC-V-based processor capabilities. GlobalFoundries has also secured custom processor design and development tools, including ASIP designers and ASIP programmers. It amounts to expanding the foundation necessary for client companies to design processors tailored to specific applications and integrate them with mass production processes.

Automotive radar, advanced driver assistance systems, industrial robots, smart factories, and next-generation IoT devices require real-time data processing under limited power and latency conditions. Consequently, the capability to provide low-power processor IP, AI acceleration, software, and manufacturing supply chains together is becoming increasingly important.

GlobalFoundries has been conducting its business centered on specialized processes and stable supply chains in the automotive, industrial, and telecommunications sectors. The acquisition of ARC can be seen as a strategy to expand customer touchpoints from the design stage to mass production by combining processor IP and software capabilities with these capabilities.

“With the combination of MIPS and ARC, GlobalFoundries is now able to provide the software, IP, and custom silicon capabilities needed for customers to develop application-specific solutions across automotive, industrial robotics, and embedded systems,” said Samir Watson, CEO of MIPS.

With the incorporation of the ARC business unit, MIPS has secured an IP ecosystem based on over 150 patents and more than 300 customers. Synopsys will focus on interface and underlying IP portfolios, while GlobalFoundries will be responsible for the ownership and operation of ARC processor IP. This acquisition is an example of a foundry strategy to combine design and manufacturing amidst the trend of AI semiconductor competition expanding beyond data centers to automotive and industrial edge systems.