March 31, 2006 – Cypress Semiconductor Corp. and Simtek Corp. have expanded their yearlong licensing and development agreement, which involved creating a 0.13-micron SONOS-based CMOS nonvolatile static random-access memory (nvSRAM) process.

Under the new deal, Cypress will pay Simtek $2 million and additional payments of $1 million in June and December of this year, and receive warrants to purchase up to 20 million Simtek shares. Cypress will include the functionality in its future programmable system-on-chip and customized ICs, and Simtek can use certain Cypress IP for future nvSRAM products and will receive manufacturing support.

The two also plan to jointly develop new products utilizing Simtek’s SONOS-based nonvolatile technology for production using Cypress’ manufacturing processes, and will work toward getting it adopted in 65nm and below node manufacturing.