Cypress sells PSRAM product line

By Colleen Taylor, Contributing Editor -- Electronic News, 5/14/2007

In its latest move to streamline its business model, Cypress Semiconductor Corp. today announced a technology transfer agreement under which Taiwan-based Elite Semiconductor Memory Technology Inc. (ESMT) will acquire Cypress's pseudo static random access memory (PSRAM) product line for an undisclosed amount.

According to the agreement, Cypress will transfer PSRAM-related intellectual property, photomasks and probe card assets to ESMT, strengthening ESMT's memory product portfolio for handheld devices.

ESMT said it manufactures specialty memory products for consumer products including DVD players and recorders, LCD flat panel monitors and TVs, portable automotive audio/video systems, MP3 players, settop boxes, and video game systems.

The company also said its existing low power SDRAM product line includes 16-Mbit, 32-Mbit, 64-Mbit and 128-Mbit devices for the handheld market. With the PSRAM product transfer from Cypress, ESMT's Mobile RAM product line will expand to cover lower-density, low-power memory products including 2-Mbit, 4-Mbit, 8-Mbit, 16-Mbit and 32-Mbit PSRAM devices.

Cypress has cut a significant amount of fat in recent months, parting ways with a number of its businesses in a move to narrow its focus and up its profitability. Included in these streamlining deals have been the $53 million sale of its Silicon Valley Technology Center (SVTC) business unit, the outsourcing of its SRAM manufacturing to Taiwan-based foundry United Microelectronics Corp. (UMC), and the sale of its automotive image sensor business to Sensata Technologies Inc.  Earlier this month, the company sold 7.5 million shares of its wholly-owned solar technology subsidiary SunPower Corp.'s Class A common stock for proceeds of $455.1 million.
 
"The divestiture of the PSRAM business is consistent with Cypress's new strategic direction," Ahmad Chatila, executive VP of Cypress's memory and imaging division, said in a statement. Chatila added that ESMT will continue all delivery and support to Cypress's current PSRAM customer base.