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About Synopsys, Inc.

Synopsys is a leading provider of electronic design automation (EDA) software and services used in the making of integrated circuits. Chip designers use the company's products 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 intellectual property (IP) products, or pre-designed circuits used as part of larger chips. Moving beyond silicon, Synopsys had added software testing to its portfolio. Customers come from a variety of industries, but particularly the semiconductor and electronics manufacturing as well as automotive and energy. The company generates about half its sales in US.


Synopsys makes money from three groups: Core EDA, about 60% of revenue, which includes digital, custom, and field-programmable gate array (FPGA) IC design tools, as well as verification products (its Verification Continuum platform); IP, and Systems Integration, about 30% of revenue, which includes the DesignWare IP portfolio, silicon-proven IP Solutions for SoCs; Software Integrity, about 10% of revenue, products that aid in developing IC designs.

Besides software, Synopsys makes hardware that handle prototyping and emulation for FPGA systems.

Revenues are also broken down among Technology Subscription Licenses (TSL, paid over the life of the contract), upfront, and maintenance and services. About 65% of revenues come from time-based products while around 20% are from upfront products, with maintenance and services accounting for about 15%.

Geographic Reach

California- based Synopsys has more than 30 offices in the US. Its international headquarters is in Dublin, Ireland, and it has offices in about 30 countries, with major operations in Armenia, India, and China.

The US represents Synopsys' largest market, accounting for about 50% of revenue; the Asia/Pacific region, including Korea and Japan generates about 40% of revenue, followed by Europe for about 10%.

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. The company typically distribute its software products and documentation to customers electronically, but provide physical media when requested by the customers.

Financial Performance

Synopsys' sales have steadily increased over the past five years, growing 50% from 2015-2019.

In 2019 (ended October), sales jumped 8% to $3.4 billion from 2018, driven by the continued business growth in all product categories. The company also had an extra week in its 2018 fiscal year, which added $46 million.

Total cost of revenue and operating expenses were $2.8 billion, a 3% increase from 2018, due to an increases in the number of employees and restructuring. But the company posted a profit of $532 million in 2019, 23% higher than 2018, thanks to a tax credit for the year. Synopsys' effective tax rate was 2.4% in 2019 compared to 19% the year before.

Synopsys held $729 million of cash and equivalents in its coffers in 2019, an increase of 1%, because of money used for acquisitions and stock repurchases. Operations generated $800.5 million in 2019, investing activities used $235.9 million, and financing activities provided $561.9 million.


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 it sees opportunities in technologies for self-driving cars.

Several years ago, Synopsys began to develop its software integrity product, which identifies and addresses security and quality problems early in the software development cycle. The software-focused product, which expands the company's portfolio beyond chips, accounts for about 10% of Synopsys' revenue.

Acquisition and strategic investments are a key part of Synopsys' strategy to fill gaps in its product offerings and expand its portfolio into other areas. The company made several acquisitions in 2019 and 2018 to strengthen its communications and intellectual property capabilities.

nventory of Synopsys' hardware products decreased 70% in 2019 from 2018, tying up about $19 million. The company carries the inventory to meet demand for the products hardware and to be able to deliver it.

Synopsis' growth strategy is based on building on their leadership in their EDA products, expanding and proliferating their IP offerings, and driving growth in the software security and quality market. As they continue to expand their product portfolio and their total addressable market, for instance in the software security and quality space, and as hardware product sales grow, the company expect to experience increased variability in their revenue.

Mergers and Acquisitions

In 2020, Synopsys acquired a certain assets from eSilicon. The acquisition expands Synopsys' DesignWare Embedded Memory IP portfolio with TCAMs and multi-port memory compilers, as well as its Interface IP portfolio with High-Bandwidth Interface (HBI) IP.

Also in 2020, the company acquired Tinfoil Security, an innovative provider of dynamic application security testing (DAST) and Application Program Interface (API) security testing solutions, headquartered in Mountain View, California. "Through the acquisition of Tinfoil Security, Synopsys is expanding its DAST capabilities and adding API security testing capabilities, extending the most comprehensive portfolio of application security and quality testing solutions and further strengthening our technology leadership," said Andreas Kuehlmann, co-general manager of the Synopsys Software Integrity Group.

In early 2020, Synopsys agreed to acquire the certain IP assets of INVECAS, headquartered in Santa Clara, California. This acquisition will broaden Synopsys' DesignWare® Logic Library, General Purpose I/O, Embedded Memory, Interface and Analog IP portfolio. The acquisition will also add a team of experienced R&D engineers to accelerate Synopsys' physical IP roadmap across a range of process technologies to address customers' evolving design requirements in markets such as consumer, IoT and automotive.

In late 2019, the company acquired DINI Group, an established leader in FPGA-based boards and solutions, headquartered in La Jolla, California. DINI Group's FPGA-based solution further expands its position in physical prototyping and extends its FPGA solutions into network applications and high frequency/low latency algorithmic trading.

In 2019, it acquired QTronic, a leader in simulation, test tools, and services for automative software and systems development headquartered in Germany. QTronic simulation and test tools will accelerate Synopsys delivery of a comprehensive automotive virtual prototyping solution for system and software development throughout the automotive electronic supply chain.

Company Background

Aart de Geus founded Optimal Solutions in 1986 with funding from General Electric, where he had been a manager in the company's Advanced Computer-Aided Engineering Group. The group built the prototype of a product that saved chip designers time by automating much of the design work.

In 1987 the company changed its name to Synopsys (an abbreviation of "synthesis and optimization systems") and moved to California. It went public in 1992, and two years later it introduced software that engineers used to design chips by function rather than structure.

As chips grew more complicated, Synopsys bolstered its product development efforts through acquisitions. The company has added other functions such as designing chip components that customers can use instead of designing their own and software testing.


Synopsys, Inc.

690 E Middlefield Rd
Mountain View, CA 94043-4033
Phone: 1 (650) 584-5000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: SNPS
Stock Exchange: , NASDAQ
President and Co-CEO: Chi-Foon Chan
Chairman and Co-CEO: Aart J. de Geus
CFO: Trac Pham
Employees (This Location): 500
Employees (All Locations): 13,896

Major Office Locations

Mountain View, CA

Other Locations

Chandler, AZ
El Segundo, CA
Milpitas, CA
Mountain View, CA
Pasadena, CA
San Diego, CA
San Francisco, CA
San Jose, CA
Sunnyvale, CA
Monument, CO
Schaumburg, IL
Marlborough, MA
Westborough, MA
Durham, NC
Parsippany, NJ
Ossining, NY
Hillsboro, OR
Allentown, PA
Austin, TX
Plano, TX
Williston, VT
Kirkland, WA
Seattle, WA
Shanghai, China
Shenzhen, China
Calgary, Canada
Mississauga, Canada
Nepean, Canada
Hsinchu City, Taiwan
Taipei City, Taiwan
Frankfurt Am Main, Germany