Cypress enters into deal with SK hynix for its NAND flash business across automotive, industrial and IoT markets

Embedded solutions company Cypress Semiconductor announced that it has entered into a joint venture with SK hynix system ic. Under an agreement for an initial five-year period, the joint venture will manufacture and sell Cypress’ existing single-level cell (SLC) NAND products and will continue to invest in next-generation NAND products.

The joint venture will be 60-percent-owned by SK hynix system ic and 40-percent-owned by Cypress, and it will be based in Hong Kong.

Cypress will transfer its full portfolio of SLC NAND Flash memories to the joint venture. The 1Gb to 16Gb devices provide reliable data storage for communications, consumer, automotive and industrial applications. The products are available in compact packages to fit in small form factors, and they meet stringent quality standards, including AEC-Q100 automotive-grade quality.

Cypress offers advanced embedded solutions for the automotive, industrial, smart home appliances, consumer electronics and medical products. Cypress’ microcontrollers, wireless and USB-based connectivity solutions, analog ICs and reliable, high-performance memories help engineers design differentiated products and get them to market first. Cypress is committed to providing customers with support and development resources enabling them to disrupt markets by creating new product categories.

The implementation and launch of the joint venture is expected to take place in the first quarter of next year, subject to applicable regulatory approvals having been obtained (including the expiration or termination of the applicable waiting periods) and other customary closing conditions.

“This joint venture provides a path to a continued and stable supply to customers longer term,” said Hassane El-Khoury, Cypress’ president and chief executive officer. “A key aspect of our Cypress 3.0 strategy is to focus on our core technology targeting growth markets. We will continue to sharpen our focus on differentiated Connect, Compute and Store solutions that target the automotive, industrial and IoT markets, which have longer design cycles. Our NAND customers will now be supported by the joint venture, and the joint venture will continue to support their future needs while allowing Cypress to participate in the success of the joint venture.”


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