SAN MATEO, Calif. Cypress Semiconductor Corp. has strengthened its USB hand with the acquisition of ScanLogic Corp., a supplier of USB chips, in a $22 million cash deal. Cypress currently offers USB components for peripherals, but the acquisition gives the company USB controller technology as well.
"The USB market is changing," said Dave Podsiadlo, marketing manager for USB products at Cypress (San Jose, Calif.). A PC-centric approach was common in the past, with a single USB controller in a PC chip set and multiple peripheral systems plugged into that PC. But new USB formats are emerging that involve a change to a peer-to-peer standard that allows any peripheral to function as a smart host, but which requires advanced USB controller components in the peripheral, Podsiadlo said.
"In the past it didn't make sense for us to have controller technology," he said, since Cypress did not offer PC chip sets. But the requirement for USB controller technology in peripherals and embedded systems puts the controller squarely into Cypress territory. "The time is right to see USB hosts in places other than the PC," he said.
ScanLogic (Burlington, Mass.) has 18 people, who will be added to Cypress' roster. The company is already shipping products, and generated $3.8 million in revenues in the first quarter of this year. Podsiadlo said the deal will add to Cypress' 2001 revenues almost immediately.
Cypress made its first foray into the USB market in 1999 when it picked up the USB business unit of Intel Corp., then acquired Anchor Chips Inc., a USB chip supplier based in San Diego.
"This deal is not expensive considering what we got," said Podsiadlo. "Now we've got everything."