The operations are expected to continue with Cypress becoming a customer of SVTC going forward. Cypress will transfer substantially all equipment, process technologies, and personnel associated with its SVTC business to the private equity firms.

"With SVTC, Cypress created a unique R&D business model that turned a capital-intensive operation into a profit center and that has enabled many novel silicon technologies to find their way from lab to fab using the SVTC," said T.J. Rodgers, president and CEO of Cypress.  "With a recent shift in focus to a new mix of programmable products and solutions, Cypress now has very few products requiring ‘bleeding-edge' technology, leading us to conclude that we can do R&D more cost-effectively as an SVTC customer than as an owner."

"We believe SVTC plays a valuable role in the semiconductor value chain.  We are thrilled to provide resources that will allow SVTC's management to pursue their vision and provide a wider range of services and technologies to the fabless semiconductor community," said J. Crandall, managing partner of Oak Hill.