Cypress Acquires Its Cypress MicroSystems Subsidiary | Cypress Semiconductor
Cypress Acquires Its Cypress MicroSystems Subsidiary
Cypress Acquires Its Cypress MicroSystems Subsidiary
Company Buys Out Minority Interest in Fast-Growing
Programmable System-on-Chip™ Enterprise
SAN JOSE, Calif., February 8, 2006 - Cypress Semiconductor Corp. (NYSE: CY) has completed the acquisition of the 6.5% minority shareholder (employee) interest in Cypress MicroSystems (CMS), a subsidiary of Cypress. Based in Lynnwood, Wash., CMS invented and sells Programmable System-on-Chip (PSoC®) configurable mixed-signal arrays. The PSoC device reached $23.8 million in revenue for Cypress in the fourth quarter with 16.2% pre-tax profit. CMS is now a business unit in the company's Consumer and Computation Division.
The revolutionary new PSoC product, which contains an embedded microcontroller, is used in a wide variety of applications and market segments, including cell phones, portable media players, laptop computers, PDAs, white goods and industrial automation. Demand for the PSoC mixed-signal array has quadrupled over the past two quarters, driven in part by designs in handheld consumer devices. Cypress recently initiated production of PSoC devices in its high-volume Fab 4 facility in Bloomington, Minn., to keep up with increasing customer demand. PSoC is also manufactured at Cypress's Fab 2 plant in Round Rock, Texas, and will soon be produced at Grace Semiconductor Manufacturing Corp. as the result of a recent foundry agreement signed with Cypress.
"Cypress MicroSystems is the latest success in our internal startup program," said T.J. Rodgers, Cypress's president and CEO. "Using this approach, we have launched independent companies with the entrepreneurial freedom to thrive in highly competitive environments-in the case of CMS, both the $5.4 billion market for 8-bit microcontrollers and the technically challenging area of mixed-signal, programmable analog products."
"The PSoC product has become a reusable architectural solution for our customers," said George Saul, vice president of Cypress's PSoC business unit. Saul served as CMS's chief executive officer from 2002-2005. "It is a uniquely practical product with a flexible, reconfigurable architecture that provides customers with the ability to make quick design changes and integrate dozens of peripheral function ICs into a single PSoC.
"The core team of 50 hardware, software, product and field application engineers and marketers-second to none in our business-has been integral to our success," Saul added. "In addition, consistent support from Cypress, our only venture partner, meant we could focus on our customers and execution, instead of diluting valuable time raising money."
About the PSoC Family
PSoC devices are configurable mixed-signal arrays that integrate a fast 8-bit microcontroller with many peripheral functions typically found in an embedded design. PSoC devices provide the advantages of an ASIC without the ASIC NRE or turn-around time. A single PSoC device can integrate as many as 100 peripheral functions with a microcontroller, saving customers design time, board space, power consumption and from five cents to as much as $10 in system costs. Easy to use development tools enable designers to select configurable library elements to provide analog functions such as amplifiers, ADCs, DACs, filters and comparators and digital functions such as timers, counters, PWMs, SPI and UARTs. The PSoC family's analog features include rail-to-rail inputs, programmable gain amplifiers and up to 14-bit ADCs with exceptionally low noise, input leakage and voltage offset. PSoC devices include up to 32KB of Flash memory, 2KB of SRAM, an 8x8 multiplier with 32-bit accumulator, power and sleep monitoring circuits, and hardware I2C communications.
All PSoC devices are dynamically reconfigurable, enabling designers to create new system functions on-the-fly. Designers can achieve more than 120 percent utilization of the die in many cases, by reconfiguring the same silicon for different functions at different times. In the automotive PSoC LIN bus reference design, the same digital blocks are reconfigured four times to support the different LIN communication modes. In doing so, these blocks consume less than 10 percent of PSoC hardware resources and less than 10 percent of the PSoC MCU cycles.
Cypress solutions are at the heart of any system that is built to perform: consumer, computation, data communications, automotive, industrial, and solar power. Leveraging a strong commitment to customer service and performance-based process and manufacturing expertise, Cypress's product portfolio includes a broad selection of wired and wireless USB devices, CMOS image sensors, timing solutions, network search engines, specialty memories, high-bandwidth synchronous and micropower memory products, optical solutions, and reconfigurable mixed-signal arrays. Cypress stock is traded on the New York Stock Exchange under the ticker symbol CY. More information about the company is available online at www.cypress.com.
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Cypress, the Cypress logo and PSoC are registered trademarks of Cypress Semiconductor Corporation. Programmable System-on-Chip is a trademark of Cypress.