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. 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 yearly payments for use and support. It generates about half its sales outside the US.

Geographic Reach

The company has about 25 offices in the US. International offices are located in another 25 countries, with major operations in China, France, Germany, India, and Taiwan.

The US represents Synopsys' largest market, accounting for nearly half of sales. Japan and Europe contributed 13% and 14%, respectively. All regions except Japan reported year-over-year growth in fiscal 2013 (year-end October).

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.

Financial Performance

Overall sales rose 12% in 2013 to $1.9 billion. Synopsys saw growth in all areas of its business, but results were driven primarily by upfront license revenue, which jumped 25% year-over-year due to acquisitions. Profits grew 36% to $247 million, in line with the increased revenue.

Cash provided by operating activities increased slightly to $496 million due to an increase in collections from customers and a decrease in tax payments, which was offset by higher vendor payments and higher personnel-related costs due to increased headcount.


The company has had success growing through acquisitions and by expanding its operations outside the US. 

Mergers and Acquisitions

Synopsys has used acquisitions to expand its product lines, and it bought six companies in 2012. ExpertIO strengthened the delivery of its line of verification IP with a new collection of storage protocols, while RSoft Design provides software used for design, optimization, and simulation in telecommunications components, systems, and networks. Ciranova added EDA technology used to cut the time required to design transistor-level layouts for nanometer-scale and other advanced nodes.

Additionally, Synopsys paid $426 million for Taiwan-based SpringSoft, a developer of IC design software. It also paid $550 million for Magma Design Automation and $213 million for Emulation & Verification Engineering, S.A. (EVE).

In 2011 Synopsys bought nSys Design Systems as part of an effort to address the system-on-a-chip (SoCs) verification market. Also that year the company acquired Extreme DA, a maker of software used to improve circuit design performance, power consumption, and manufacturing output.

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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
  • Managing Director, Magma India: Anand Anandkumar
  • Pres-magma Kk: Noriaki Kikuchi
  • Vp Finance And Cfo: Peter S Teshima

Major Office Locations

  • San Jose, CA

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