Hua Hong NEC Establishes NVM Technical Cooperation Relationship with Cypress

SHANGHAI, China and SAN JOSE, Calif, April 17, 2007 -- Shanghai Hua Hong NEC Electronics Co. Ltd. ("Hua Hong NEC") and Cypress Semiconductor Corp. (NYSE: CY) have signed an agreement whereby Cypress will license its 0.13um SONOS (Silicon Oxide Nitride Oxide Silicon) embedded nonvolatile memory (NVM) technology to Hua Hong NEC.

Embedded nonvolatile memory is one of the strategic niche technology platforms offered by Hua Hong NEC. Its 0.35um embedded EEPROM, 0.35um embedded OTP and 0.25um embedded Flash technologies have been in mass production for several years and have helped Hua Hong NEC to deliver outstanding performance in the area of embedded NVM. Cypress's 0.13um SONOS technology will extend Hua Hong NEC's rich technology offering and enhance its market leadership in embedded NVM, while enabling Cypress to drive adoption of the technology.

SONOS flash memory has numerous advantages, such as excellent salability, high endurance, low power, radiation hardness, and is highly compatible with standard CMOS technologies. In addition, SONOS can provide more cost-effective solutions with a low mask adder, compared to other embedded NVM technologies.

"We are delighted to cooperate with Cypress on embedded flash/EEPROM technology at the 0.13um node. By leveraging Cypress's experience with SONOS technology, Hua Hong NEC can offer its customers a more comprehensive and higher quality foundry service," said Dr. Steve Liu, president of Hua Hong NEC. "0.13um SONOS NVM technology will also put Hua Hong NEC in a leading position in the area of embedded flash/EEPROM. This will be a powerful technology for applications such as smart cards and microcontrollers."

"Hua Hong NEC is a well-established leader in the embedded flash/EEPROM foundry market," said Shahin Sharifzadeh, executive vice president of wafer fabs and technology at Cypress. "This agreement will help to drive Cypress's SONOS technology as the predominant solution for a variety of embedded NVM applications."

About Hua Hong NEC
Hua Hong NEC is one of China's largest pure play wafer foundry companies, providing foundry services to both domestic and international customers. It offers CMOS technologies for Logic, Mixed Signal, RF, HV, eNVM and other processes for a wide range of applications such as Smart Card, communications, consumer electronics and computing. Hua Hong NEC provides first-class round-the-clock services, including design support, IP library, mask layout, wafer processing, functionality testing, reliability testing and failure analysis. Collaborating with its partners, Hua Hong NEC also provides mask manufacturing, packaging and testing services. To date, Hua Hong NEC has received various international certifications such as ISO9001 for quality system, ISO14001 for environmental protection, ISO27001 for information security and OHSAS18001 for occupational health safety. Proven by such certifications, Hua Hong NEC ensures its customers of high product quality and information security. For more information on the company, please visit http://www.hhnec.com.

About Cypress
Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value. Cypress offerings include the PSoC® Programmable System-on-Chip™, USB controllers, general-purpose programmable clocks and memories. Cypress also offers wired and wireless connectivity solutions ranging from its WirelessUSB™ radio system-on-chip, to West Bridge™ and EZ-USB® FX2LP controllers that enhance connectivity and performance in multimedia handsets. Cypress serves numerous markets including consumer, computation, data communications, automotive, industrial, and solar power. Cypress trades on the NYSE under the ticker symbol CY. Visit Cypress online at www.cypress.com.