July 19, 2006 – Cypress Semiconductor Corp. says that it has shipped the first devices manufactured by Grace Semiconductor Manufacturing Corp. several months ahead of plan. Cypress expects to ship “significant revenue” from the programmable system-on-chip (PSoC) mixed-signal arrays, which integrate configurable analog and digital circuitry with an eight-bit microcontroller, on two devices during the current quarter, and qualify a third PSoC device in 4Q06.

“We are pleased with how quickly the team at Grace has been able to ramp to volume production,” said Shahin Sharifzadeh, EVP of wafer fabs and technology at Cypress. “To get from concept to production in under two quarters far exceeded our expectations.”

Following the manufacturing ramp, Cypress said it will begin transferring its 0.13-micron C8 process technology to the Chinese foundry in 3Q06, for use in low-power devices including USB and clock chips, with production starting by 2Q07.