Electronic design automation software provider Synopsys has reached a cooperation agreement with activist investor Elliott Investment Management that will see Elliott managing partner Jesse Cohn join the company’s board, according to a report by Reuters.
Under the arrangement, Synopsys will expand its board from 10 to 11 directors, with Cohn also taking a seat on the company’s corporate governance and nominating committee.
The agreement follows several weeks of discussions between the California-based semiconductor software company and Elliott, which reportedly accumulated a multi-billion-dollar position in the business earlier this year.
Shares in Synopsys have risen around 20 per cent since Elliott’s involvement became public, reflecting investor optimism that the activist firm could help drive operational improvements and margin expansion.
In a statement, Cohn described Synopsys as a critical player within the semiconductor ecosystem, citing growing demand linked to artificial intelligence and rising chip design complexity as key long-term growth drivers.
Synopsys, which has a market capitalisation of roughly $100bn, provides software and intellectual property used in the design of advanced semiconductors. The company’s customer base includes major technology and chip groups such as Nvidia, AMD, Tesla and Alphabet.
Alongside Cadence Design Systems, Synopsys dominates the electronic design automation market, supplying tools that underpin the development of modern semiconductor architectures.
Elliott has encouraged Synopsys to improve profitability and execution metrics in order to narrow the margin gap with Cadence. Despite strong structural demand for semiconductor design tools, analysts have also pointed out that Synopsys shares have underperformed the broader semiconductor sector since the emergence of the AI-driven rally in late 2022.
The company has been positioning itself to capitalise on accelerating global chip demand, with industry forecasts projecting semiconductor sales to surpass $1tn in 2026 following record revenues in 2025.
Synopsys appointed Sassine Ghazi as chief executive in early 2024, succeeding long-time leadership under co-founder Aart de Geus, who now serves as executive chair.
De Geus welcomed Cohn’s appointment, highlighting his experience as both an investor and public company director.
Cohn is one of Elliott’s senior leaders alongside Gordon Singer and serves on the hedge fund’s investment committee. Elliott oversees approximately $80bn in assets and has built a reputation as one of the most influential activist investors in the technology sector.
Beyond his investment work, Cohn has held a number of high-profile board roles, including positions at Twitter prior to its acquisition by Elon Musk, as well as Citrix, eBay and athenahealth.
