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U.S. Chip Maker to Enter Design Deal With Soviets : High technology: If Cypress Semiconductor of San Jose finalizes the licensing project, it will be the first of its kind.

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TIMES STAFF WRITER

Cypress Semiconductor Corp., a San Jose chip maker, said Friday that it has signed a tentative agreement with a Soviet research institute to license designs for several advanced semiconductors.

T. J. Rodgers, Cypress’ chief executive, said that, when the licensing agreement is completed later this year, it would be the first between a U.S. semiconductor maker and a Soviet group.

Cypress’ deal was struck during a 10-day tour that 13 Russian scientists and high-ranking government technology officials are making through the Silicon Valley in Northern California. Dubbed the “Silicon Summit,” the tour followed Soviet President Mikhail S. Gorbachev’s summit meetings with President Bush and Gorbachev’s subsequent visit to San Francisco.

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Organizers of the Silicon Summit said several semiconductor manufacturers and other high-technology companies are meeting with representatives of the Soviet delegation to explore possible business opportunities.

Cypress, the first company to reach an accord with members of the tour, signed a letter of intent with the Soviet Union’s International Center for Informatics and Electronics to license a variety of advanced semiconductor-manufacturing technologies as well as semiconductor designs.

Among the designs in which Cypress is interested are high-definition television products chips that could be used in televisions as well as computers; digital signal-processing chips for telecommunications and audio/video applications, and digital filtering devices used in communications applications.

Cypress has agreed to pay royalty fees for use of the designs and to deposit $100,000 in an escrow account while terms of the final licensing agreement are written.

“This is a tremendous opportunity for Cypress,” said Rodgers, who said his company makes none of the products for which he wants licenses. “Our philosophy is to grow through the addition of new products and product lines. . . . It also meets the Soviets’ needs. They require high-quality process technology, international marketing capabilities and support as well as negotiable currency--all things we can provide. We see this as a long-term, win-win situation.”

Rodgers said he plans to visit the Soviet Union next month to discuss the specific technologies and products under consideration.

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