Cypress Semiconductor and Chinese Grace Semiconductor Manufacturing have established a strategic foundry partnership in which Cypress will transfer the technologies of PSoC (Programmable System-on-Chip) mixed signal array, CMOS (Complementary Metal Oxide Semiconductor) image sensors, wireless USB (Universal Serial Bus), and PC clock deign to Grace, while Grace will prioritize its supply to Cypress. The first product will be certified in Grace's 8-inch fab in the third quarter of 2006. Grace will then produce PSoC mixed signal array with Cypress proprietary S4 technology. Starting the fourth quarter of 2007, Cypress is expected to gain an additional output of 15,000 wafers per month.