Mark LaPedus EE Times (12/09/2009 2:21 PM EST)

The case for Cypress Semiconductor

Ashok Kumar, an analyst from Northeast Securities, on Cypress: ''Our checks indicate that Cypress has captured (the) bulk of the new design wins for multi-touch capacitive smartphones. The differentiating attributes include higher level of functionality, attractive cost, lower power consumption and a tightly integrated software stack.

Based on current design activity, we expect Cypress to displace Synaptics and become the dominant supplier of touch screen chip solutions in 2010.

Samsung and LG are expected to shift their high end smartphone touchscreen chip designs to Cypress based solutions. We also expect Cypress to increase its footprint at Nokia and Motorola at the expense of Synaptics and Atmel respectively.''

Doug Freedman, an analyst with Broadpoint Amtech, on Cypress' TrueTouch line: ''Ramp of TrueTouch (likely reaching $100 million by the end of next year) is encouraging as design win activity remains healthy. Management expects to increase their presence across the top five handset OEMs (2-3 coming by the end of 1Q10).''

The case for Microchip Technology Inc.

Freedman of Broadpoint Amtech on Microchip: ''Management is focused on growing SAM through its mTouch (Touch Sense) and XLP products, as 32-bit begins to ramp towards meaningful volumes.''

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