Here are a couple of analogies for Synopsys (SNPS):

• Adobe for chip designers: Just as Adobe provides essential software tools (like Photoshop and Illustrator) for creative professionals, Synopsys provides the indispensable software tools that engineers use to design and verify the microchips inside all our electronic devices.
• Autodesk for microchip design: Similar to how Autodesk provides Computer-Aided Design (CAD) software (like AutoCAD) for architects and mechanical engineers to design buildings and products, Synopsys provides the specialized EDA (Electronic Design Automation) software for electronic engineers to design intricate microchips.

• Electronic Design Automation (EDA) Tools: Software used by semiconductor companies to design, verify, test, and manufacture integrated circuits (chips).
• Design IP (Intellectual Property): Reusable, pre-verified design blocks and interface IP for system-on-chip (SoC) designs, accelerating product development.
• Software Integrity Solutions: Tools and services that help organizations build secure software by identifying and fixing security vulnerabilities throughout the development lifecycle.

Major Customers of Synopsys (SNPS)

Synopsys (SNPS) operates primarily as a business-to-business (B2B) company, providing electronic design automation (EDA) software, intellectual property (IP), and services essential for the design, verification, and manufacturing of semiconductors and electronic systems. Its customer base consists of other companies in the semiconductor, electronics, and system design industries.

Due to the critical role of EDA tools in chip design, virtually all major semiconductor companies and technology firms that design their own custom silicon are customers of Synopsys, often alongside its competitors. While Synopsys typically does not disclose individual customers due to confidentiality and the diversified nature of its revenue, the following are examples of major companies that extensively use advanced EDA tools and are highly likely to be significant customers or partners:

• NVIDIA (Symbol: NVDA) - A leading designer of graphics processing units (GPUs) and AI accelerators, requiring sophisticated EDA tools for complex chip designs.
• Qualcomm (Symbol: QCOM) - A global leader in mobile chip design, including Snapdragon processors and modems.
• Intel (Symbol: INTC) - A major integrated device manufacturer (IDM) that designs and manufactures a wide range of processors and other semiconductors.
• Apple (Symbol: AAPL) - Designs its own custom silicon (e.g., A-series, M-series chips) for its devices, making it a significant consumer of EDA solutions.
• Samsung Electronics (Symbol: 005930.KS) - As both a major integrated device manufacturer and a leading foundry (listed on the Korea Exchange), Samsung heavily utilizes and collaborates with EDA vendors for chip design and manufacturing process optimization.

These companies represent the core segments of Synopsys's customer base, including fabless semiconductor companies, integrated device manufacturers, and system houses that develop proprietary silicon.

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Sassine Ghazi, President and Chief Executive Officer

Sassine Ghazi became President and Chief Executive Officer of Synopsys in January 2024, and also serves on the company's board of directors. He joined Synopsys in 1998 as an applications engineer and has held various leadership roles, including President and Chief Operating Officer, Chief Operating Officer, and General Manager of the Design Group. Before joining Synopsys, he began his career as a design engineer at Intel. Ghazi has been instrumental in driving innovation and growth at Synopsys, including the launch of groundbreaking solutions like the Fusion Design Platform™ and Synopsys.ai.

Shelagh Glaser, Chief Financial Officer

Shelagh Glaser joined Synopsys as Chief Financial Officer on December 1, 2022, overseeing finance and other business operations. Prior to Synopsys, Glaser served as the Chief Financial Officer at Zendesk from May 2021 to December 2022, a software-as-a-service CRM company that was acquired by a consortium led by private equity firms Hellman & Friedman and Permira in 2022. She also had an extensive 29-year career at Intel, where she held various senior leadership positions, including Corporate Vice President and CFO/COO for the Data Platform Group and the Client Computing Group. Glaser also serves on the board of PubMatic.

Antonio Varas, Chief Strategy Officer

Antonio Varas has served as the Chief Strategy Officer of Synopsys since 2021. Before joining Synopsys, he was a Senior Partner and Managing Director at Boston Consulting Group, where he also co-led the global Semiconductor practice.

Sriram Sitaraman, SVP and Chief Information Officer

Sriram Sitaraman serves as the Senior Vice President and Chief Information Officer at Synopsys, where he also co-chairs the Digital Transformation Office.

Jill Larsen, Chief People Officer

As Synopsys' Chief People Officer (CPO), Jill Larsen oversees all aspects of the company's People and Workplace Experience.

Synopsys (SNPS) operates primarily in the Electronic Design Automation (EDA) software and Semiconductor Intellectual Property (IP) markets. Historically, the company also had a Software Integrity business, which was divested in September 2024.

Electronic Design Automation (EDA)

The global Electronic Design Automation (EDA) market, a core area for Synopsys, is substantial and experiencing continued growth:

• The global EDA market is projected to be approximately USD 15.12 billion in 2024, rising to USD 16.65 billion in 2025. Other estimates place the global EDA software market at USD 12.11 billion in 2023, with a projection to reach USD 22.21 billion by 2030, demonstrating a Compound Annual Growth Rate (CAGR) of 9.1% from 2024 to 2030.
• Another report values the global EDA market at USD 14.66 billion in 2023, with a projection to grow to USD 32.75 billion by 2032 at a CAGR of 9.35% from 2024 to 2032.
• The Electronic Design Automation Tools market was valued at USD 19.22 billion in 2025 and is forecast to reach USD 28.85 billion by 2030, growing at an 8.5% CAGR over the period.
• Regionally, North America accounted for 45% of the EDA market in 2025, while Asia-Pacific held 42.4% of the Electronic Design Automation Tools market share in 2024 and is expected to grow at a 9.9% CAGR by 2030.

Semiconductor Intellectual Property (IP)

Synopsys is also a significant player in the Semiconductor IP market:

• Global design IP revenues reached USD 8.5 billion in 2024.
• The global Semiconductor IP Market size was valued at USD 47.91 billion in 2024 and is projected to reach USD 75.22 billion by 2032, exhibiting a CAGR of 6.4% from 2026 to 2032.
• Another assessment of the global semiconductor IP market valued it at USD 6.6 billion in 2022, with a forecast to grow to USD 14.6 billion by 2032 at a CAGR of 8.3% from 2023 to 2032.

Combined Addressable Market (after Ansys acquisition)

Following Synopsys's acquisition of Ansys, their total addressable market (TAM) is expected to increase by 1.5x to approximately $28 billion globally. This combined TAM, which encompasses silicon to systems design solutions including EDA and simulation, is projected to grow at roughly an 11% CAGR.

1. Advancements in AI-driven Electronic Design Automation (EDA) Tools: Synopsys is poised for significant revenue growth through the increasing adoption of its AI-driven EDA tools and solutions. The accelerating complexity and pace of technology innovation, particularly in artificial intelligence, are driving silicon and systems companies to utilize Synopsys's offerings, such as PrimeSim, Custom Compiler, and Synopsys.ai Copilot. These tools enhance efficiency, boost productivity, and shorten design cycles for advanced chips, especially those tailored for AI applications.
2. Expansion into System-Level Design and Simulation through the Ansys Acquisition: The strategic acquisition of Ansys is a transformative event expected to significantly expand Synopsys's market opportunity and solidify its position as a leader in engineering solutions from "silicon to systems." This merger integrates Synopsys's expertise in silicon design with Ansys's advanced simulation and analysis capabilities, addressing the growing need for comprehensive solutions in complex system development.
3. Broadening Customer Base and Market Penetration: Synopsys is experiencing an expanding customer set as a wider range of companies across various industries are increasingly defining and optimizing system performance at the silicon level. This includes major technology players like Amazon, Google, and Apple, as well as car manufacturers and other businesses that are investing in designing their own chips, thereby driving demand for Synopsys's software and services.
4. Strategic Focus and Investment in Core Design and IP Businesses: By divesting its Software Integrity Group, Synopsys is sharpening its focus and prioritizing investments in its higher-growth Design Automation and Design IP segments. This strategic realignment allows the company to concentrate resources on its core design business, which is critical for supporting the development of advanced and AI-driven technologies. While the Design IP segment has faced some recent headwinds, Synopsys has ambitious long-term targets for mid-teens growth, particularly in high-value IP for AI and other advanced designs.

Share Repurchases

• Synopsys replenished its stock repurchase program with an increased authorization of up to $1.5 billion on September 1, 2022.
• In December 2021, the company authorized a new stock repurchase program of up to $1 billion.
• Actual share repurchases (net) were approximately $907.74 million in fiscal year 2024, $862.04 million in fiscal year 2023, $542.36 million in fiscal year 2022, and $44.68 million in fiscal year 2021.

Share Issuance

• The net effect of common equity issuance and repurchase generally shows repurchases over the last several years. However, for the partial fiscal year ending October 31, 2025, Synopsys reported a net issuance of approximately $232.21 million.

Outbound Investments

• Synopsys entered into a definitive agreement to acquire Ansys for approximately $35 billion in a cash-and-stock transaction, announced on January 16, 2024, and completed on July 17, 2025.
• The company completed the sale of its Software Integrity business on September 30, 2024, for $1.65 billion.
• Other recent acquisitions include Valtrix (July 2024), Intrinsic ID (March 2024), Imperas (December 2023), Maxeda and Silicon Frontline (both 2023).

Capital Expenditures

• Capital expenditures were approximately $123.16 million in fiscal year 2024, $191.82 million in fiscal year 2023, and $139.08 million in fiscal year 2022.
• Expected capital expenditures for fiscal year 2025 are approximately $200 million.
• These investments are primarily directed towards growth initiatives and maintaining investments in property and equipment.