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Amazon Web Services is paying Synopsys more than $1 billion for chip design blueprints

The multi-year agreement makes Amazon the lead customer for Synopsys' expanded silicon IP business, which is shifting to a license-plus-royalty model

Photo by Matthias Balk/picture alliance via Getty Images

Amazon $AMZN Web Services announced a multi-year agreement on Wednesday to license chip design intellectual property from Synopsys $SNPS (Nasdaq $NDAQ: SNPS) in a deal valued at more than $1 billion, the companies said.

The agreement names Amazon as the lead customer for Synopsys' silicon IP business as it expands into what the company calls application-optimized IP — blueprints tailored for specific chip types rather than generic components. The deal also........

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