Cypress Semiconductor to Buy IC Works

Cypress Semiconductor Corp., which makes microchips for computers and telecommunications uses, agreed to buy IC Works Inc., a closely held maker of integrated-circuit timing equipment, for about $130.2 million in stock. Cypress, which reported 1997 revenue of about $500 million, will issue 13.7 million shares of its stock to ICW shareholders. ICW has annual revenue of about $70.4 million. San Jose-based Cypress said it expects the acquisition to help it penetrate the PC market. Its manufacturing size will help reduce production costs at ICW, also based in San Jose. Cypress shares fell 31 cents to close at $9.50 on the NYSE. The announcement came after the close of trading.