Cypress Licenses 40-Nanometer Embedded Flash IP to UMC, Enabling Next-Generation MCUs, IoT and Wearables Applications

Agreement Extends Collaboration on 65- and 55-nm SONOS Embedded Nonvolatile Memory; Cost-Effective Technology Delivers High-Yield, Scalable Process

SAN JOSE, Calif., January 21, 2015 -- Cypress Semiconductor Corp. (NASDAQ: CY), a leading provider of embedded nonvolatile memory solutions, and United Microelectronics Corporation (NYSE: UMC; TWSE: 2303) ("UMC"), a leading global semiconductor foundry, today announced that UMC licensed Cypress’s SONOS (Silicon Oxide Nitride Oxide Silicon) embedded Flash memory intellectual property (IP) for the 40-nanometer process technology node. Cypress’s SONOS delivers an easy-to-integrate nonvolatile memory cell with unmatched scalability for future development. The technology will primarily be used in Internet of Things (IoT) applications, wearables, microcontrollers and logic-dominated products.

This marks the third SONOS technology collaboration in the last three years between the two companies. UMC licensed Cypress’s 55-nm SONOS process technology in 2014 and qualified Cypress’s 65-nm technology in 2013.

Cypress’s 40-nm SONOS embedded nonvolatile memory (NVM) process provides significant advantages over other embedded NVM offerings. SONOS requires fewer additional mask layers to insert it into a standard CMOS process, specifically, five additional masks at the 40-nm node compared with a minimum of twelve additional masks needed for other embedded Flash technologies. In addition, SONOS does not alter standard device characteristics or models when added to baseline CMOS processes, preserving existing design IP. SONOS delivers intrinsically high yields and reliability, 10 years of data retention, 100,000 program/erase endurance cycles, and robust resistance to soft errors. Cypress and UMC have demonstrated the ability to scale SONOS to smaller nodes, expediting future IP development.

“In addition to offering an IoT-specific technology and design platform, UMC offers design kits and IP specialized for our IoT processes to expedite our customers’ designs to market,” said S.C. Chien, vice president of Specialty Technology Development at UMC. “We are happy to expand our diverse range of eFlash solutions with the addition of Cypress’s SONOS on UMC’s high-volume and high-demand 40-nm process, providing customers with a high-performance, low power embedded memory option for customer IoT products.”

“We are pleased to continue working with UMC to extend the adoption of our SONOS IP as the top choice for embedded nonvolatile memory,” said Sam Geha, Vice President of the Technology and Intellectual Property Business Unit at Cypress. “The 40-nm SONOS process is embedded in an ultra-low power process technology and other 40-nm variants. It will benefit a broad range of UMC’s customers looking to develop smart, power-efficient products for the Internet of Things and wearable electronics markets. 40-nm SONOS also enables faster processing speeds and lower power consumption for microcontrollers.”

About UMC

UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced technology and manufacturing for applications spanning every major sector of the IC industry. UMC’s robust foundry solutions allow chip designers to leverage the company’s leading-edge processes, which include 28nm poly-SiON and gate-last High-K/Metal Gate technology, mixed signal/RFCMOS, and a wide range of specialty technologies. Production is supported through 10 wafer manufacturing facilities that include two advanced 300mm fabs; Fab 12A in Taiwan and Singapore-based Fab 12i. Fab 12A consists of Phases 1-4 which are in production for customer products down to 28nm. Construction has been completed for Phases 5&6, with future plans for Phases 7&8. The company employs over 15,000 people worldwide and has offices in Taiwan, mainland China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.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 flagship PSoC® 1, PSoC 3, PSoC 4 and PSoC 5LP programmable system-on-chip families. Cypress is the world leader in capacitive user interface solutions including CapSense® touch sensing, TrueTouch® touchscreens, and trackpad solutions for notebook PCs and peripherals. Cypress is a world leader in USB controllers, which enhance connectivity and performance in a wide range of consumer and industrial products. Cypress is also the world leader in SRAM and nonvolatile RAM memories. Cypress serves numerous major markets, including consumer, mobile handsets, computation, data communications, automotive, industrial and military. Cypress trades on the NASDAQ Global Select Market under the ticker symbol CY. Visit Cypress online at www.cypress.com.