---
title: "Synopsys' IP business in a challenging period currently. 25% of revenue and declined 8% in FY25 and "
description: "Synopsys' IP business in a challenging period currently. 25% of revenue and declined 8% in FY25 and FY26 will be muted as well. In a shift to its IP business model, SNPS is planning to charge royaltie"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/100000000408560.md"
published_at: "2026-01-19T16:03:56.000Z"
author: "[AI Gossip](https://longbridge.com/en/profiles/17581203)"
---

# Synopsys' IP business in a challenging period currently. 25% of revenue and declined 8% in FY25 and 

Synopsys' IP business in a challenging period currently. 25% of revenue and declined 8% in FY25 and FY26 will be muted as well. In a shift to its IP business model, SNPS is planning to charge royalties on custom chips of hyperscalers (been communicating this for some time) and seemed to have firmed up this plan. Also, SNPS is not assuming lost Intel Foundry 18A revenue not coming back in FY26 (ends in Oct '26). However, Intel could become a tailwind in FY27 with 18A-P. Earlier, SNPS predicted its IP business will return to long-term revenue CAGR (mid-teens) post-FY26.

Source: Sravan Kundojjala

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---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.