Synopsys is exploring partnerships with Chinese AI developers to integrate local large language models into its electronic design automation (EDA) software. This initiative aims to assist Chinese clients, as OpenAI services remain unavailable in the region, while ensuring full compliance with US export regulations.
The company recently partnered with OpenAI to create GPT-Synopsys, a specialized model designed to optimize chip designs for power, performance, and area. This tool interprets design data and suggests improvements, which are then verified by traditional Synopsys software. Revenue from this joint venture will be shared between the two firms.
Director of Product Management Ravi Subramanian noted that customers currently face a one-year development cycle for new chips, driving demand for automation. While specific partners for the Chinese market have not been disclosed, the company intends to replicate the OpenAI collaboration model using local AI technology.
Synopsys projects a 15% revenue growth for the 2027 fiscal year, targeting $11.1–11.2 billion. The Chinese market remains significant, contributing approximately 10% of total revenue. In the last reported quarter, the company generated $255.5 million in China, marking a 3% year-over-year increase.
Beyond chip design, the company is eyeing growth in physical AI, which includes humanoid robots and other systems capable of interacting with the physical environment.
