Synopsys makes software and hardware tools that engineers use to design and test semiconductors, and — following the $35B+ acquisition of Ansys in 2025 — to simulate and analyze physical products across virtually any engineering discipline. On the chip design side, Synopsys' EDA software automates and verifies each step of the chip design process, from initial architecture through manufacturing. Key EDA products include Fusion Compiler for digital design, PrimeTime for timing sign-off, and VCS and ZeBu for functional verification and emulation. Synopsys also sells hardware emulation and prototyping systems (ZeBu, HAPS) that let customers run software on simulated chips before physical silicon is available — critical for AI and HPC programs. The Ansys portfolio adds multi-physics simulation (structural, fluid dynamics, electromagnetics, thermal, optical) used across aerospace, automotive, industrial, and healthcare industries. Synopsys also sells pre-designed silicon IP blocks — interface IP, processors, memory, and security IP — that chip designers incorporate rather than build from scratch. EDA and simulation software are sold primarily as multi-year, non-cancelable subscriptions recognized ratably, creating a stable, predictable revenue base backed by an $11.4B backlog. Hardware products are sold or leased outright, making that revenue lumpier. Design IP is licensed on a per-design basis, making it more variable quarter-to-quarter. Synopsys sells primarily through a direct sales force to semiconductor companies, hyperscalers, automotive OEMs, and aerospace and industrial firms. Synopsys reports in two segments: Design Automation (~75% of revenue) and Design IP (~25% of revenue).