Cypress Semiconductor Corporation
Sep 11, 2015

Cypress and Fujitsu Electronics Announce $500 Million Distribution Agreement for Japan

Agreement Expands Distribution Partnership to Include All Cypress Products, Opening up New Opportunities for Growth in Japanese Market

SAN JOSE, Calif. and TOKYO, Sept. 11, 2015 /PRNewswire/ -- Cypress Semiconductor Corp. (NASDAQ: CY) and Fujitsu Electronics Incorporated (FEI) today finalized an agreement that will significantly expand FEI's role as a distribution partner for Cypress. In the wake of Cypress's merger with Spansion Inc. in March 2015, the agreement replaces the two prior agreements between Spansion and FEI, providing FEI with access to the products covered by the prior agreements and adding Cypress's entire product line, including PSoC® Programmable System-on-Chip devices, automotive touch-sensing solutions, SRAM and nonvolatile memories, Bluetooth Low Energy solutions and USB controllers. The agreement took effect on September 10, 2015 and is expected to generate $500 million in sales the first year.

"We are excited to welcome Fujitsu Electronics as a distribution partner for all Cypress products, building on their team's knowledge of and design expertise with our NOR and NAND flash memories, MCUs and analog products," said Mike Balow, Executive Vice President of Sales and Applications at Cypress. "One-third of Cypress's current revenue is generated in Japan, and FEI will help us to further grow our business in this key market. The agreement will expand our ability to sell the combined Cypress product portfolio into the large Japanese automotive market and to new customers in the industrial and consumer markets."

"We are pleased to expand our distribution partnership with Cypress to include their full lineup of products, including their flexible PSoC solutions, market-leading SRAMs and cutting-edge USB Type-C controllers," said Shigeo Kashiwagi, President of Fujitsu Electronics Inc. "Cypress's focus on high-quality, high-performance products is a natural fit for the Japanese market, and FEI has the design experience and strong customer relationships to help expand their presence with a broad range of key OEMs."

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About Cypress

Cypress (NASDAQ: CY) delivers high-performance, high-quality solutions at the heart of today's most advanced embedded systems, from automotive, industrial and networking platforms to highly interactive consumer and mobile devices. With a broad, differentiated product portfolio that includes NOR flash memories, F-RAM™ and SRAM, Traveo™ microcontrollers, the industry's only PSoC® programmable system-on-chip solutions, analog and PMIC Power Management ICs, CapSense® capacitive touch-sensing controllers, and Wireless BLE Bluetooth Low-Energy and USB connectivity solutions, Cypress is committed to providing its customers worldwide with consistent innovation, best-in-class support and exceptional system value. To learn more, go to www.cypress.com.

Forward-Looking Statements

This press release contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the expected revenue and benefits to Cypress related to the distribution agreement with FEI. Statements including words such as "believes," "expects," "will," "look forward" or similar expressions are forward-looking statements.  Because these statements reflect the Company's current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties that may affect the Company's business or future financial results.  These risks include, among others, risks related to the fact that our operating results may be dependent on the performance of our distributors, including FEI, who is our primary distributor for Japan; risks associated with the economy; conditions in the overall semiconductor market; acceptance and demand for the Company's products; technological and development risks; legal and regulatory matters and other competitive factors. Additional factors that could cause future results or events to differ from those the Company expects are those risks discussed under Item 1A. "Risk Factors," in Cypress's Annual Report on Form 10-K for the fiscal year ended December 28, 2014, Cypress's Quarterly Report on Form 10-Q for the quarter ended June 28, 2015, and other reports filed by Cypress with the Securities and Exchange Commission. Please read the "Risk Factors" and other cautionary statements contained in these filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, the occurrence of certain events or otherwise. As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and Cypress's financial condition and results of operations could be materially adversely affected.

Cypress, the Cypress logo, PSoC and CapSense are registered trademarks and PSoC Creator, F-RAM and Traveo are trademarks of Cypress Semiconductor Corp. All other trademarks are property of their owners.

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SOURCE Cypress Semiconductor Corp.

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