Synopsys makes electronic design automation (EDA) software, semiconductor IP, and—following its 2025 acquisition of Ansys—simulation software for structural, fluid dynamics, and electromagnetic analysis. EDA software is the foundational toolchain for designing any integrated circuit. Synopsys and Cadence are the two dominant EDA vendors globally, each deeply embedded in the workflows of semiconductor companies across the industry.

AI chip design has expanded the demand for EDA tools in two ways. First, the complexity of AI chips—multi-die architectures, chiplet integration, 3D packaging, heterogeneous compute—has increased the scope of what EDA must simulate and verify. Second, hyperscalers building custom AI ASICs have become significant EDA customers, requiring full design engagements for in-house chip programs at scale.

In 2025, Synopsys completed the $35B acquisition of Ansys, the leading provider of engineering simulation software. The combination creates a platform that can model how a chip will perform thermally and electrically when integrated into a server or other product. The company's backlog stands at $8.1B, reflecting multi-year commitments from AI chip design customers with long-cycle programs.