On the freescale deal, it shows something people like new have been arguing for a long time. The mcu business is a software business for the most part.
Once you are specd in, it is very difficult to get kicked out and that customer is a cashhcow for you.
To get specd in, however, you have to win by software going forward - renaisas is an exception giving it's root in auto and it's roll up history. The single bigger hurdle in getting designed in is software, or ease of development. PE was absolutely best in class and for the most part got freescale where it iss today.
Soo I think for guys like St to be successful, they have tobright thee software side of theiir business.
That bring me to cypress. Of all the vendors, those guys are the only one who is doing absolutely innotive things on the software side (also hardware side as well).
Given their small size, they would be a perfect acquisition target for someone with a wide product offering.