MANHASSET, N.Y. Nonvolatile SRAM supplier Simtek Corp. has signed an expanded license and development agreement with Cypress Semiconductor Corp.
In May 2005, Simtek (Colorado Springs, Colo.) and Cypress (San Jose) agreed to jointly develop a 0.13-micron Silicon-Oxide-Nitride-Oxide-Silicon (SONOS) nonvolatile memory process
that would be utilized in future products from both companies.
Under the expanded agreement, Cypress retains the right to include nvSRAM functionality on future programmable system-on-chip (PSoC) and customized integrated circuits originally granted in the May 2005 agreement, and now with clearly defined royalty payments to Simtek for the use of its SONOS-based nvSRAM intellectual property.
Simtek is granted the right to use certain Cypress IP in developing future generation nvSRAM products, including the 0.13-micron SONOS-based CMOS process, advanced SRAM IP, design-related IP, design-for-manufacturability know-how; and other IP related to Cypress' advanced CMOS processes and procedures.
Both companies will extend the deployment of Simtek's nvSRAM technology, and work to establish SONOS as the preferred technology for scaleable non-volatile products at 65-nm and below. They will jointly develop and produce a family of products utilizing the SONOS technology using Cypress's manufacturing processes.
Upon signing the agreement, Simtek received $2 million from Cypress, and receive additional payments of $1 million on June 30, 2006 and Dec. 31, 2006. The agreement also calls for Simtek to issue warrants to Cypress to purchase 20 million shares of its common stock at an exercise price of 75 cents per share.