Under the plan, Cypress has spun out the assets and intellectual property of its PC clock business to a new entity called Spectra Linear Inc. Spectra Linear (Santa Clara, Calif.) acquired these assets for an undisclosed amount of cash and equity, and licensed access to its clock-related intellectual property. Cypress, based here, will continue to provide wafer manufacturing, assembly, test and logistics services to Spectra Linear.

The transaction calls for the transfer of Cypress's frequency timing generators and buffers optimized for desktop and notebook computers, computer servers and memory modules to Spectra Linear. It does not include Cypress' general purpose clock offerings of fixed and programmable timing products.

"This transaction accelerates Spectra Linear's entry into the PC market with world class customer engagements,'' said Ilhan Refioglu, president and CEO of the new startup. Most recently, he was vice president of the Timing Technology Division of Cypress.

Little is known about the startup. Spectra Linear is venture backed by InterWest Partners and Norwest Venture Partners.

"The spin-out of Cypress's PC Clocks business is consistent with our strategic plans to focus on mass-market programmable, system-on-chip products," said T.J Rodgers, Cypress's president and CEO, in a statement.

The word on the street is that private-equity firms are talking to Cypress Semiconductor about a leveraged buyout, according to an analyst.

By: DocMemory
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