Jim:     Mr. Rodgers, welcome back to the show...

TJ:     Thank you very much.

Jim:    Alright, I want you to tell our viewers what a great Penoir has with inventions? What does it have to do with making a new chip?

TJ:     Well, you have got to do something on Saturday and Sunday, and my passion every since I had my first bottle of great Burgandy in 1973 was to make the pest Penoir in the world. So I do that on the weekends. Make my own wine.

Jim:    And you learned though. You learned about light, you learned about chips, you learned about design. Give us an example of the PSoC, and the kind of inventions that you come up with, have to do less with what the end market is and first with the ingenious nature of it. And then you find other reasons to use it.

TJ:     Look, I will give you one example. First of all PSoC is a small computer with a program and analog circuitry that you can configure the way that you want. And digital circuitry that you can figure the way you want. All in one chip. All for a buck, $1.25 rough cut, average price. We brought out a chip called Radon in 2004, and in 2007 Apple invented the iPhone and the world went gaga over it. We actually took a chip that we invented in 2004, programmed it and configured it differently and taught it how to run an iPhone like interface. We are now shipping millions, tens of millions of them into the marketplace. We were a few years ahead of the market because we could configure what we had.

Jim:    Right, and that is the same again how about the fact that when I go into a hotel room, I have to put a card in. How does that card know when I have checked out? How is that card so smart? What is the brains of that card?

TJ:     Well, we had a company that came to us, they made the little magnetic electric door locks and they wanted a cost reduction. So we took PSoC and we programmed it to read data coming from the desk, when they give you a number, and they send it up to the door. Read that number and then we programmed it to have the analog read the magnetic strip, which is a very weak signal, amplify it and then match the ones and zeros on the card vs. the ones and zeroes that came up on the desk. Turn on the red or green light, meaning ? indicator, and then pull back the lock and let you in. And we did that literally with the same chip that runs the iPhone interface, just programmed a different way.

Jim:    How does my soda machine know that it does not have enough soda in it? So the guy does not come. These are all yours. I am just trying to explain to people, people does not understand an ?. They do not understand PSoC. They use your stuff everyday and they do not know it, right?

TJ:     Exactly. Same chip. Same chip again and in this case you go into a vending machine and you count the coins as they go thru, there is a little electric signal so they count coins. Then they read the bottom, you want Diet Coke, you want 7-Up, whatever. And then they run the solenoids that open the trap door to drop the soda down. And then they decrement so they know how much soda they started out with and they keep track of inventory. And then at night that chip which runs that function, which everybody knows, shuts itself down and turns on the off light. And turns into a modem. That is the thing that can translate data over the telephone. And then it transmits in either I am out of quarters, I am out of Diet Coke, come help me. Or it transmits in, I am still full. It has been a rainy day. Don’t waste any money coming to find me. I am still full. And then it turns back and it turns the Coke machine on again.

Jim:    Now, how about this… the best for last… finger navigation? How unbelievable would this be if we were in the 1990’s and someone… or it was science fiction in the movies. It is reality now, isn’t it?

TJ:     It is. If you have a laser pointer sometime and you point it at cloth or even glass, you will notice little speckles around the laser. And those little speckles are due to the interference of the coherent light in the laser. And it turns out that their size and spacing is not random. It looks random. But if you move that light, you can count the dots and you can count how fast they are moving. And by doing that, you can shine the laser up underneath the bottom of your finger. This infrared laser, you cannot see it. And then those speckles go back down to the chip, and the chip watches those dots. And you can move your thumb or your finger over, like a roller ball, except it is completely solid and has no moving parts.

Jim:    So it does look like “Minority Report”? It does.

TJ:     It is getting there. Human interface devices.

Jim:    Cypress Envirosystems… the last time when you started doing SunPower people told me that it might be worth $500m some day. Maybe $800m. I am hearing people saying that this might be worth a billion to me. It sounds like it could be another SunPower. Tell me about it.

TJ:     Well, SunPower when we spun it out was $14 and change per share, it was $2.5b. I like the Environment stuff. Our shareholders like it, so we started another one called Cypress Envirosystems, instead of creating energy, their job is to save energy. And they are going in and making you more efficient. For example, your thermostats, those hissy ones that run on air power, you cannot control them remotely. Therefore, in most building in the United States they stay hot or air conditioned at night, and they never change. You have to have somebody running up and down changing all the thermostats. So we put a radio in it, and we put a little mechanical thumb in it that goes back and forth and you know can sit at a personal computer on the internet and go in and turn down all the thermostats in a building to save power.

Jim:    Why do other companies not win the Golden Mouse Trap? And this seems to be something that you guys are after.

TJ:     We got one. That one was for power PSoC. The chip that I described to you earlier, the PSoC had all of these attributes, we then took it into the power room so that it can drive light emitting diodes, the next most efficient source of light coming. This is 5 to 10 years out because of cost. Are light emitting diodes, so I could nearly blind you with the light emitting diode with a 12 watt light. And we build a PSoC chip that has the intelligence as I said but also it can run an ampler current thru these diodes.

Jim:    Now, I know that a lot of people might not understand a lot of things that TJ said. He does explain it in English, if you go to the analyst day it is on the web. This man is an inventor for you if you are a shareholder. Why not own shares of what he does? TJ Rodgers, founder, President and CEO of one of the most exciting companies on earth, Cypress Semi. Thank you so much for coming on the show.

TJ:     Thank you.

[verbatim recap]

[end of segment]

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