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

CypressCypress 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.”