791915--3/3/2010--CYPRESS_SEMICONDUCTOR_CORP

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{customer, product, revenue}

{tax, income, asset}

{condition, economic, financial}

{regulation, change, law}

{stock, price, operating}

{system, service, information}

{personnel, key, retain}

{product, market, service}

{operation, natural, condition}

{financial, litigation, operation}

{product, liability, claim}

{property, intellectual, protect}

{cost, regulation, environmental}

{debt, indebtedness, cash}

{competitive, industry, competition}

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{operation, international, foreign}

{acquisition, growth, future}

{loss, insurance, financial}

Current unfavorable economic and market conditions, domestically and internationally, may adversely affect our business, financial condition, results of operations and cash flows. The trading price of our common stock has been and will likely continue to be volatile due to various factors, some of which are beyond our control, and each of which could adversely affect our stockholders value We face significant volatility in supply and demand conditions for our products, and this volatility, as well as any failure by us to accurately forecast future supply and demand conditions, could materially and negatively impact our business. Our business, financial condition and results of operations will be seriously harmed if we fail to compete successfully in our highly competitive industry and markets. Our financial results could be adversely impacted if we fail to develop, introduce and sell new products or fail to develop and implement new technologies. The complex nature of our manufacturing activities, our broad product portfolio, and our increasing reliance on third party manufacturers makes us highly susceptible to manufacturing problems and these problems can have a substantial negative impact on us if they occur. We are increasingly dependent upon third-parties to manufacture, distribute, generate a significant portion of our sales, fulfill our customer orders and transport our products and problems in the performance or availability of these companies could seriously harm our financial performance. If our products contain defects, it could result in loss of future revenue, decreased market acceptance, injury to our reputation and product liability claims. Any guidance that we may provide about our business or expected future results may differ significantly from actual results. We may be unable to protect our intellectual property rights adequately and may face significant expenses as a result of ongoing or future litigation. If credit market conditions do not continue to improve or if they worsen, it could have a material adverse impact on our investment portfolio. Unfavorable outcome of litigation pending against us could materially impact our business. We face additional problems and uncertainties associated with international operations that could seriously harm us. We compete with others to attract and retain key personnel, and any loss of, or inability to attract, such personnel would harm us. If the spin-off of SunPower does not qualify as a tax-free transaction, tax could be imposed on both our shareholders and us. We are subject to many different environmental, health and safety laws, regulations and directives, and compliance with them may be costly. Our operations and financial results could be severely harmed by certain natural disasters. The failure to integrate our business and technologies with those of companies that we acquire could adversely affect our financial results. We maintain self-insurance for certain indemnities we have made to our officers and directors. We may utilize debt financing and such indebtedness could adversely affect our business, financial condition, results of operations, earnings per share and our ability to meet our payment obligations. If Grace Semiconductor Manufacturing Corporation were to default on the leases we have guaranteed on their behalf, our financial condition could be harmed. We have implemented and will implement future new Oracle-based applications to manage our worldwide financial, accounting and operations reporting, and disruptions in such tools could adversely affect the integrity of our financial data and our business generally. Changes in U.S. tax legislation regarding our foreign earnings could materially impact our business. We are subject to examination by the U.S. Internal Revenue Service (the IRS ), and from time to time we are subject to income tax audits or similar proceedings in other jurisdictions in which we do business, and as a result we may incur additional costs and expenses or owe additional taxes, interest and penalties which will negatively impact our operating result. The accumulation of changes in our shares by 5-percent stockholders could trigger an ownership change for U.S. income tax purposes, in which case our ability to utilize our net operating losses would be limited and therefore impact our future tax benefits. Our ability to add or replace distributors is limited.

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791915--3/3/2010--CYPRESS_SEMICONDUCTOR_CORP_/DE/