Hua Hong NEC Completes 0.13-Micron NVM Technology License From Cypress

SHANGHAI, China and SAN JOSE, Calif. -- March 25, 2008 -- Cypress Semiconductor Corp. and Shanghai Hua Hong NEC Electronics Co. Ltd (Hua Hong NEC) today announced the successful qualification of Cypress's 0.13-micron SONOS (Silicon Oxide Nitride Oxide Silicon) embedded nonvolatile memory (NVM) technology at Hua Hong NEC. The technology was originally licensed from Cypress in December 2006.

After 14 months of seamless cooperation between both companies, Hua Hong NEC has completed all new tool installations, process transfer and flash Macro IP verification, achieved high yields comparable to Cypress, and has passed all process qualifications. Multiple products from both Cypress and Hua Hong NEC's customers have now been taped-out by Hua Hong NEC.

"This successful licensing of 0.13-micron embedded flash technology has put Hua Hong NEC in a leading position in the area of embedded flash/EEPROM, " said Dr. Leiping Lai, vice president and chief marketing officer at Hua Hong NEC. "This new move further demonstrates our long-term commitment to such a strategically important market."

"Cypress's 0.13-micron embedded flash technology is a true flash technology delivering more than 100k cycles of endurance and at least 20 years of data retention at competitive performance and leakage levels," said Cypress Managing Director, Bo Jin. "The technology provides high reliability, low power and cost-effective solutions with a low mask adder compared to other embedded NVM technologies and most of all, it is scalable."

"This was a perfectly managed and executed project," said Hua Hong NEC President and CEO, Dr. Steve Liu. "I'm happy to see this 0.13-micron embedded flash technology extending Hua Hong NEC's rich technology offering and enhancing its market leadership in embedded NVM."

"Hua Hong NEC is a well-established leader in the embedded flash/EEPROM foundry market," said Shahin Sharifzadeh, executive vice president of Worldwide Wafer Manufacturing and president of Cypress China. "This project 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 the world's leading pure-play foundries, providing value-added foundry services to worldwide customers. Based on its solid foundation in 0.35-micron to 0.13-micron process, the Company offers CMOS technologies for logic, mixed signal, RF, HV, eNVM, BCD and other processes for a wide range of applications such as smart card, communications, consumer electronics, computing and automotive. 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, OHSAS18001 for occupational health safety, VEU authorization from the U.S. Commerce Department's BIS, and has passed the TS16949 compliance audit for quality management. 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.