Cypress Achieves Greater Than 99 Percent On-Time Delivery While Dramatically Reducing Lead Times

Cypress Semiconductor Corp. (Nasdaq: CY) today announced it has achieved greater than 99% on-time delivery of its products as a result of an internal program to focus on customer support. The program is based on gathering feedback from customers and making corresponding improvements that will have the greatest impact. As part of these efforts, Cypress launched a new webpage at www.cypress.com/customercare that highlights the program’s results and provides customers with an easier way to provide feedback and get support.

Based on customer feedback, Cypress focused on four specific areas to improve on-time deliveries: simplifying the company’s supply chain, backlog and capacity planning, flexible manufacturing, and dual sourcing. The improvements involved reorganizing resources and changing planning methods to deliver on time by design. Cypress leaned out its supply chain by moving from 31 manufacturing sites with 211 travel routes to 18 sites with only 48 routes. As part of the effort, Cypress also reduced the average product lead-time from approximately seven weeks to five weeks. Cypress has also invested in additional manufacturing capacity and placed a focus on having multiple sources available to manufacture products--giving the company the flexibility to absorb manufacturing delays and increases in demand.

"In 2010, Cypress launched a major effort to serve our customers better, and we are very pleased with our progress, especially with regards to on-time delivery,” said Minh Pham, Executive Vice President of Worldwide Manufacturing and Operations at Cypress. “Our customer support program is fundamentally based on listening to direct customer feedback and acting on it. This is the primary impetus for our new customer service website, which we believe will facilitate communication for our customers while helping us achieve our goal of 100% on-time delivery with just a four-week lead-time.”

About Cypress

Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value. Cypress offerings include the flagship PSoC® 1, PSoC 3, PSoC 4, and PSoC 5 programmable system-on-chip families. Cypress is the world leader in capacitive user interface solutions including CapSense® touch sensing, TrueTouch® touchscreens, and trackpad solutions for notebook PCs and peripherals. Cypress is the world leader in USB controllers, which enhance connectivity and performance in a wide range of consumer and industrial products. Cypress is also the world leader in SRAM and nonvolatile RAM memories. Cypress serves numerous major markets, including consumer, mobile handsets, computation, data communications, automotive, industrial, and military. Cypress trades on the NASDAQ Global Select Market under the ticker symbol CY. Visit Cypress online at www.cypress.com.

Cypress and the Cypress logo, PSoC, CapSense, and TrueTouch are registered trademarks of Cypress Semiconductor Corporation. All other trademarks are the property of their respective owners.