Cypress Acquires Silicon Packets

SAN JOSE, Calif. -- Cypress Semiconductor (NYSE:CY) today announced that it has acquired Silicon Packets Inc., a company that specializes in designing 10 gigabit-per-second framers for OC-192/STM-64 SONET/SDH and 10G Ethernet transport solutions. The acquisition accelerates Cypress's current schedule to develop 10-Gbps solutions for MAN/WAN infrastructure equipment such as switches and routers. Silicon Packets's framers are complementary to the company's existing communications product portfolio and its roadmap for high-speed networking linecards. Silicon Packets's framer penetrates both the 10G Ethernet and OC-192/STM-64 SONET/SDH markets with a single device. The framer will be among the first devices with an SPI-4 phase II system interface, which provides maximum flexibility to interface with other networking components. The SPI-4 phase II interface is preferred by most 10G system designers. The new framer is expected to sample in Q102. "This acquisition brings a roadmap-critical 10G product to Cypress with specific, compelling technical advantages, and it enhances our focus on Metropolitan Area Networks (MANs) -- a segment of the communications market that shows the highest growth potential," said Cypress president and CEO T.J. Rodgers. "Targeting Metro-focused 10G Ethernet and OC-192/STM-64 SONET/SDH designs will enhance Cypress's ability to get a quick start out of the blocks in its core communications markets." Cypress Semiconductor Corp.