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Synopsys IP revenue declines amid Intel 18A foundry delays and high-performance computing shifts
Thursday, February 26, 2026 at 12:54 PM
Synopsys reports a three-quarter decline in its IP business performance, attributed largely to delays in Intel 18A foundry timing and challenges in the Chinese market. The company is currently operating under the assumption that Intel will not initiate new design starts this year and is restructuring its IP portfolio through non-core asset sales and the addition of royalty-based structures for hyperscaler contracts.
Context
Synopsys is facing a period of transition as its Design IP business has reported a revenue decline for three consecutive quarters, significantly underperforming initial expectations. This downturn is primarily attributed to timing delays with Intel’s 18A foundry node, which has resulted in no new design starts from the Intel foundry expected for the remainder of the year. Additional headwinds include shifting demand in the China market and a slower-than-anticipated catch-up in High-Performance Computing (HPC) IP titles.
To counter these challenges and drive resilient growth, Synopsys is aggressively rationalizing its business by divesting non-core assets, such as the recently completed $2.1 billion sale of its Software Integrity Group. The company is also shifting its business model with hyperscalers by integrating royalty components into new deals to capture long-term value. Despite the IP weakness, Synopsys remains a mission-critical partner in the AI supply chain, recently closing its $35 billion acquisition of Ansys to expand its simulation and silicon-to-system capabilities.
Sources (8)
Synopsys, Inc. | Investor Relations Quarterly Results
Intel Foundry Achieves Major Milestones - Intel Newsroom
Cadence Expands Design IP Portfolio Optimized for Intel 18A and Intel 18A-P Technologies, Advancing AI, HPC and Mobility Applications | Cadence
Synopsys supports Intel 18A-P, E process tech ... - eeNews EuropeIntel 18A(P) Process Technology Wiki - SemiWikiSynopsys's (SNPS) Trillion-Dollar Test: After a Market Shock ...Synopsys Completes Sale of Software Integrity Business to Clearlake Capital and Francisco Partners | Cleary GottliebIncreasing Exit Multiples: IP and AI Asset Management in M&A Transactions - Ocean Tomo
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