Sepp Lars and Shanghai semiconductor manufacturing agreement reached

Game of the Plath company and Shanghai Hongli semiconductor manufacturing company reached an OEM agreement, launched the strategy of flexible manufacturing, to expand production capacity to support the rapid growth of the consumer, computing products.

The day before the game, Plath semiconductor company (CypressSemiconductor) and Shanghai Hongli Semiconductor Manufacturing Co. Ltd. (Grace) announced a strategic partnership with IC foundry. Under the agreement, Cypress company will own the programmable system on chip (ProgrammableSystem-on-ChipTM PSoC?) mixed signal array, CMOS image sensor, WirelessUSBTM and PC clock technology transfer to grace, and in return, Hongli company will give priority to the Cypress provide IC OEM production capacity. The increase in production capacity will be increased by Cypress in Bloomington and the Texas RoundRock factory production in Minnesota, so as to provide support for Cypress products with high yield, high growth in consumption and calculation equipment.

President and CEO Plath (CEO T.J.Rodgers) game company said: "the implementation process of manufacturing strategy in the model is flexible, can make Cypress using its own proprietary technology and realize the huge IC manufacturing capacity, the agreement marks the first step of the work completed, aims to support rapid growth of our leading products. In addition, we can also reduce the support we need to grow the demand for funds, and always maintain our own Fab utilization rate, and thus become a successful strategy for our customers, shareholders and the company's grace."

The first product is expected to be identified at the beginning of the three quarter of 2006 in Acer's company in Shanghai's 8 inch wafer fab. Acer will start from the production of PSoC mixed signal array, and will use Cypress proprietary S4 process. Cypress's plans to increase its total production capacity by 15000 wafers per month from the start of the fourth quarter of 2007, after a rapid rise in the company's production capacity.

Transfer the match Plath company will adopt industry best business procedures to complete its technology, at the same time dispatch manufacturing process control experts responsible for inspection, in order to make the Cypress manufacturing technology and advanced process control infrastructure to grace into a seamless heavenly robe. This will ensure a timely and efficient transfer of technology, methods, and techniques that will enable the company to fully integrate Cypress quality, statistical process control, and stringent quality requirements.

Plath game company responsible for manufacturing and R & D executive vice president ShahinSharifzadeh said: "after, after a comprehensive audit we firmly believe that: no matter the quality of products or technical ability, grace will be able to achieve consistent expectations of our customer base on Cypress. We and Grace's partnership will bring great flexibility to the Cypress, so as to meet our manufacturing requirements, while providing world-class service to our customers in the delivery time and cost."

President and chief executive officer of Acer company (CEO) Mr DongYeshun said: "we show that the generation of factory operation mode and technical expertise recognized by the grace selection game of the Plath company, aims to establish long-term partnership of mutual promotion, so as to produce additional value and maximize the enhancement of our partner's competitive advantage. We are committed to providing Cypress with advanced production equipment to support the growing demand for its products and to provide the appropriate production capacity to meet the needs of its future development."

By the third quarter of 2005, sales revenue for Plath's consumer and computing devices grew by more than $25% and is expected to grow again in the fourth quarter. These chips have a wide range of applications, including MP3 players, set-top boxes, game systems and computers, etc..