About Magma Design Automation, Inc.

To sum up, Synopsys is a leading provider of electronic design automation (EDA) software and services. Its products are used by designers of integrated circuits (ICs) to develop, simulate, and test the physical design of ICs before production, and then to test finished products for bugs and security vulnerabilities. The company also provides semiconductor intellectual property (SIP), pre-designed circuits used as part of larger chips. Customers come from a variety of markets, but particularly the semiconductor and electronics manufacturing industries. Intel is its top customer. Synopsys offers time-based software licenses, where customers make annual payments for use and support. It generates about half its sales outside the US.


Synopsys makes money from four groups: Core EDA, which includes digital and custom IC design products, verification products, and field-programmable gate array (FPGA) design products; IP and Software Solutions, which includes the Designware IP portfolio, system-level design tools, and Coverity quality and security testing; manufacturing solutions; and professional services. CoreEDA is the core source of revenue, accounting for more than 60%. IP and Software Solutions brings in 30%, followed by Manufacturing Solutions and professional services rounding out the revenue.

Geographic Reach

The company, based in Mountain View, California, has some 30 offices in the US. Its international headquarters is in Dublin, Ireland and it has offices in about 30 countries, with major operations in China, France, Germany, India, and Taiwan.

The US represents Synopsys' largest market, accounting for 50% of sales. The Asia/Pacific region generates just under 30% of revenue, followed by Europe and Japan at 12% and 10%, respectively.

Sales and Marketing

Synopsys markets its products primarily to semiconductor and electronics systems companies through direct sales efforts in the US and in select international markets. Intel accounts for about 16% of revenue while other customers include Samsung, TSMC, Broadcom, NVIDIA, Qualcomm, Toshiba, Infineon, and Huawei.

Technology subscription licenses (TSLs) generate about 80% of revenue, followed by upfront licenses at 10% of revenue. Maintenance and service accounts for the rest of the revenue.

Financial Performance

Synopsys reported higher revenue and profits as well as more cash from operations in 2016 (ended October) compared to 2015.

The company's technology subscription license (TSL) products and hardware led sales growth 8% higher in 2016 to $2.4 billion. TSL grew 7% (adding almost $120 million in revenue) while hardware sales jumped 26% (adding about $50 million in revenue). Sales rose in all geographic markets, but for Europe where sales dipped 4%. Sales in the Asia/Pacific region surged 19% in 2016, accounting for 60% of the revenue growth for the year. Overall sales rebounded after a decrease in 2014.

Synopsys pushed profit 18% higher to about $267 million in 2016. The higher revenue combined with steady levels of spending (as percentage of revenue) resulted in a solid net income increase.

Operations generated $586 million in cash compared to $495 million in 2015. Higher cash collections accounted for most of the cash flow increase.


Like most suppliers to the semiconductor industry, Synopsys has had to deal with the industry's consolidation. Synopsys has managed its way through the merger and acquisition trends and, in some cases, expanded its business. The trend toward integration of multiple chips and software into chip products plays to Synopsys' strengths in providing design and test products and services. The company looks for opportunities to grow in areas such as digital intelligence, machine learning, the Internet of Things, 5G mobile networks, virtual and assisted reality, and massive cloud-based computing. The automotive market is a particular area of interest for Synopsys, where sees opportunities in technologies for self-driving cars.

Mergers and Acquisitions

In 2017, Synopsys completed its acquisition of certain assets of Forcheck, a privately held software company based in the Netherlands that provides a static analysis tool for detecting coding defects and anomalies in FORTRAN applications. This acquisition extends the capabilities of the company's Software Integrity Platform.

The acquisition of Cigital and Codiscope came in 2016. Cigital and Codiscope add complementary products, services, and their workforces to Synopsys's portfolio.

Also in 2016 Synopsys acquired Gold Standard Simulations Ltd., a provider of CAD and EDA simulation products for design technology, Synopsys built on its TCAD strategy to reduce development time and cost.

In 2015 Synopsys bought Codenomicon, a software security company focused on software embedded in chips and devices. The acquisition of assets of Quotium, including the Seeker product and R&D team, added talent and technology to accelerate Synopsys' efforts in the software application security market.

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Magma Design Automation, Inc.

1650 Technology Dr Ste 100
San Jose, CA 95110
Phone: 1 (408) 565-7500


  • Employer Type: Public
  • Chief Information Officer: Nancy Birschbach
  • Pres-magma Kk: Noriaki Kikuchi
  • Chief Financial Officer: Greg Walker
  • Employees: 696

Major Office Locations

  • San Jose, CA

Other Locations

  • Durham, NC