Synopsys makes electronic design automation software that semiconductor companies use to design, simulate and verify chips before manufacturing, operating alongside Cadence Design Systems as one of the two dominant providers in this specialized software category. Its tools are deeply embedded in how chip designers work, and switching design software mid-project carries significant cost and risk, which gives Synopsys and its main rival durable, sticky customer relationships. As chips have grown more complex, with more transistors and more advanced manufacturing processes, the design and verification software needed to catch costly errors before manufacturing begins has become correspondingly more valuable. Synopsys also licenses semiconductor intellectual property, pre-designed circuit blocks that chipmakers can license rather than design from scratch, giving it a second revenue stream beyond its core design software business.