Cypress Inaugurates Design Center in China

New Center Will Leverage Local Talent to Design Products for Region

SHANGHAI, China, September 14, 2005 - Cypress Semiconductor Corp. (NYSE: CY) today inaugurated a regional chip design center in Shanghai. The location will provide IC design and sales support to Cypress's Asia-Pacific customers. Cypress is expecting to hire as many as 50 local employees at the new facility within the next two years.

"Shanghai offers a unique blend of talent, location and critical mass, making it an ideal site for design activity," said Paul Keswick, vice president of new product development at the Silicon Valley-based company. "In addition to several outstanding universities in the area, most of China's major fabs, design houses and technology centers are located in or around Shanghai."

The new design center, to be located in Shanghai's Grand Gateway towers, expands upon Cypress's commitment to providing local support for its Asia-Pacific customer base. Cypress also runs design centers in India, a Cypress assembly and test facility outside Manila, and an operations center in Hong Kong. The Shanghai center will design a variety of products for local markets.

Cypress currently sells a broad portfolio of consumer, computation and networking IC solutions that include general purpose and PC clock chips, CMOS image sensors, memories and embedded controller technologies such as its PSoC™ Programmable System on Chip™ mixed-signal arrays and USB devices to several Chinese customers, both directly and through distributution partners.

About Cypress

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.