Synopsys has moved to acquire a semiconductor business.
The chip design tool and IP firm has agreed to pay $22m for the analogue chip business of processor firm MIPS Technologies.
On the face of it an unusual step for a design tool firm.
But when you consider the crucial importance of high quality chip IP in the system-on-chip and FPGA design business, the acquisition of high performance ADC and DAC chip IP has a definite logic.
The analogue business at the centre of the deal was only acquired by MIPS two years ago when it bought Portgual-based Chipidea.
In essence it is the former Chipidea business and semiconductor IP, which includes valuable audio codecs and power management technology, which will move to Synopsys.
"With this acquisition, we are well-positioned to provide our customers with a strong interface and analog IP portfolio that is silicon-proven, shipping in volume and unmatched in the industry," said Joachim Kunkel, vice president and general manager of the Solutions Group at Synopsys.
Synopsys' business, which started as a straight-forward EDA software and design tool business, changed ten years ago in fundamental ways.
As a result the company, like other EDA firms, increasingly relies in the quality of the semiconductor design IP which it can provide to its Asic and FPGA design customers.
Compatibility and interoprability of the IP is important. Acquiring a source of key IP, such as ADCs and DACs, ensures Synopsys has greater control over the design process.
"The addition of the new analog IP products and the highly skilled engineering team, our customers will benefit from a broader portfolio of high quality IP," said Kunkel.
Existing IP in Synopsys' portfolio already includes digital controllers, PHY and Verification IP for widely used protocols such as USB, PCI Express, DDR, SATA and Ethernet.
Interestingly, the deal ends MIPS' brief affair with analogue chip technology, which started just two years ago when it paid $147m for Chipidea. This deal with Synopsys will see MIPS return to its roots as a pure-play microprocessor company.

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