EXHIBIT 99.1


                SMSC AND ANALOG DEVICES SETTLE PATENT LITIGATION


Hauppauge,  NY - January 31, 2005 - SMSC (Nasdaq:  SMSC) today announced that it
has settled a patent infringement  dispute with Analog Devices Inc. (NYSE: ADI),
under which both parties  have agreed to dismiss all claims  against each other.
As part of the agreement, SMSC has made a one-time payment of $6 million to ADI,
and ADI has granted SMSC a  royalty-bearing  license to the patents in question.
SMSC does not expect  royalties  under the license to have a material  impact on
future results of operations.

The  one-time  payment  to ADI  will  reduce  SMSC's  net  income  per  share by
approximately $0.20 in its fourth quarter ending February 28, 2005.

Updated Business Outlook:

For the quarter ending February 28, 2005,  revenues are currently expected to be
higher than guidance  provided on December 20, 2004,  due to stronger end market
demand as well as the receipt of payment for a portion of distributor  shipments
that were not  recognized in the prior quarter due to  collectibility  concerns.
The average  gross  profit  percentage  in the fourth  quarter is expected to be
lower due to product mix,  operating  expenses are expected to be at the low end
of prior estimates, and, excluding the impact of the above-referenced payment to
ADI, net income is expected to exceed SMSC's prior expectations.

The Company expects to report fourth quarter fiscal 2005 results in mid-April.

About SMSC:

Many of the world's most successful global  technology  companies rely upon SMSC
as a go-to resource for integrated  circuits and semiconductor  system solutions
that span analog, digital and mixed-signal technologies.  SMSC delivers products
that solve the  challenges  of space,  cost and  time-to-market  for  high-speed
computing, connectivity and embedded networking applications.

SMSC  addresses  computing,  communications  and  consumer  electronics  markets
through  leading  positions  in  Input/Output  and  non-PCI  Ethernet  products;
innovations in USB 2.0 and other  high-speed  serial  solutions;  and integrated
networking  products  employed  in a broad  range  of  applications.  Leveraging
substantial  intellectual  property and a comprehensive  global  infrastructure,
SMSC  thrives at the  intersection  of  silicon,  software  and  customized  OEM
applications.

SMSC is based in Hauppauge,  New York with operations in North America,  Taiwan,
Japan,  Korea,  China and  Europe.  Engineering  design  centers  are located in
Arizona,   New  York  and  Texas.   Additional   information   is  available  at
www.smsc.com.


Forward Looking Statements:

Except for historical  information  contained  herein,  the matters discussed in
this  announcement are  forward-looking  statements about expected future events
and financial and operating results that involve risks and uncertainties.  These
include the timely development and market acceptance of new products; the impact
of competitive  products and pricing; the effect of changing economic conditions
in domestic  and  international  markets;  changes in customer  order  patterns,
including loss of key customers,  order  cancellations or reduced bookings;  and
excess or obsolete  inventory  and  variations  in  inventory  valuation,  among
others.  Such  statements  are qualified in their entirety by the inherent risks
and  uncertainties  surrounding  future  expectations  and may not  reflect  the
potential impact of any future acquisitions, mergers or divestitures.

SMSC  competes  in the  semiconductor  industry,  which  has  historically  been
characterized  by intense  competition,  rapid  technological  change,  cyclical
market patterns,  price erosion and periods of mismatched  supply and demand. In
addition,  sales of many of the Company's  products  depend  largely on sales of
personal computers and peripheral devices,  and reductions in the rate of growth
of the PC, consumer  electronics and embedded markets could adversely affect its
operating  results.  SMSC  conducts  business  outside the United  States and is
subject to tariff and import  regulations and currency  fluctuations,  which may
have an effect on its business. All forward-looking  statements speak only as of
the date  hereof and are based upon the  information  available  to SMSC at this
time. Such information is subject to change, and the Company may not necessarily
inform,  or be required to inform,  investors of such  changes.  These and other
risks and uncertainties, including potential liability resulting from pending or
future litigation, are detailed from time to time in the Company's reports filed
with the SEC.  Investors are advised to read the Company's Annual Report on Form
10-K and quarterly  reports on Form 10-Q filed with the  Securities and Exchange
Commission,  particularly those sections entitled "Other Factors That May Affect
Future  Operating  Results" for a more  complete  discussion  of these and other
risks and uncertainties.

SMSC is a registered  trademark of Standard  Microsystems  Corporation.  Product
names and company names are trademarks of their respective holders.

Contact:

Carolynne Borders
Director of Corporate Communications
SMSC
Phone: 631-435-6626
Fax: 631-273-5550
carolynne.borders@smsc.com