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More for IoT: our natural roadmap says Cypress’ CEO

More for IoT: our natural roadmap says Cypress’ CEO

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By eeNews Europe



When asked about possible product line consolidations (both companies offer memory and ARM-based MCUs for the automotive market), Rodgers emphasizes the complementarity of the two companies.

“Of course, there may be some overhead and duplication of sales forces, but on the R&D front, all our programs will continue unaffected on both sides, without any cuts”, Rodgers told eeNews Europe. Within three years, the merger is expected to achieve more than $135 million in cost synergies on an annualized basis.

“We’ll be able to exchange more IP and that will certainly open up new ventures, but there is virtually zero duplication between our product portfolios. One of the benefits of this merger is precisely that Cypress and Spansion’s lines of MCUs are almost complementary. There is no negative revenue synergy”.

Even if both companies were already present individually in the automotive market, Rodgers explained that while Cypress tends to address embedded system solutions in the cockpit, with touch-screen interfaces, Spansion’s products find their way into car engine management.

As for the memory markets that the two companies served (Spansion will retain its own name in the merger), Rodgers expects that cross-channel selling will expand the whole company’s memory business.

Remaining on board as one of the four Spansion directors, John Kispert (formerly CEO at Spansion) highlighted that the resulting company has all the essential building blocks to address factory automation, next generation connected cars, and to fuel the growth of IoT.

“When we started our conversation Rodgers and I, we realized that by putting our companies together, we would see a wonderful roadmap in the growth of IoT”, Kispert said, although a joint growth plan for the post-merger company has not been formalized yet.

“If we lay out our combined portfolio, we now truly have a one-stop shop for our customers, so we become a more strategic supplier. We eliminate multiple sources and this makes it easier for them too” added Rodgers, “as one company, we have doubled our number of customers”.

Visit Cypress at www.cypress.com
Visit Spansion at www.spansion.com

Related articles:

Spansion expands MCUs with IoT on its radar

Can Japan get her groove back with IoT?

IoT will give ’embedded’ a shot in the arm

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