Cypress (CY) Launches New Automotive TrueTouch Controller

Cypress Semiconductor Corp. (NASDAQ:CY) has launched a new automotive-qualified capacitive touchscreen controller family for next-generation infotainment systems.

Named CYAT817, the new family of capacitive touchscreen controllers has been especially designed to meet the quality standards in the automotive space.

These controllers will most likely be available in the second quarter of 2018.

Notably, the company has underperformed the industry it belongs to on a 12-month basis. The stock has returned 43.7%, while the industry grew 48% over the same time frame.

More to the Headlines

From the user point of view, these CYAT817 controllers offer an advanced hover and touch feature, which can detect a finger up to 35 mm above the screen and also accurately measure the pressure applied by multiple independent fingers.

From a car manufacturer’s point of view, these new touchscreen controllers meet the electromagnetic compatibility (EMC (NYSE:EMC)) requirements for chip-level emissions (IEC 61967), conducted (IEC 62132) and radiated (ISO 11452) immunity, as well as for system-level (CISPR 25) specifications.

On the hardware front, these controllers can replace the mechanical on/off button of an infotainment system, freeing up space, and thereby giving it a sleek and modern interior look.

Additionally, CYAT817 controllers can support two standard host interfaces such as I2C and SPI, along with a CAN interface, allowing higher system integration and fulfilling safety requirements.

Bottom Line

Cypress sits on a multibillion-dollar opportunity in the automotive space, as its chips enable connectivity in the cars of tomorrow. The company has been making continuous efforts to build an exhaustive road map in order to target the auto space by supplying touchscreen controllers, flash memory, and power management chips, and enabling wireless applications for connected cars.

Moreover, the company has also been making rapid inroads in The Internet of Things (IoT) market by unveiling a wide array of products. It recently launched new microcontroller architecture, along with new wireless solutions, in order to increase its share in the growing IoT market.

We believe that the continuing innovation in the auto space should lead to increasing demand for Cypress’ controllers over the next few years. The latest launch is expected to further boost its touch business and share in the auto market.

Zacks Rank & Stocks to Consider

Currently, Cypress has a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the broader technology sector are ASML Holding (AS:ASML) N.V. (NASDAQ:ASML) , Lam Research Corporation (NASDAQ:LRCX) and PetMed Express, Inc. (NASDAQ:PETS) , each sporting a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings per share growth rate for ASML Holding, Lam Research and PetMed Express is projected to be 22.6%, 14.9% and 10%, respectively.

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