National Semiconductor[2] was founded in Danbury, Connecticut, by Dr. Bernard J. Rothlein on May 27, 1959, when he and seven colleagues, Edward N. Clarke, Joseph J. Gruber, Milton Schneider, Robert L. Hopkins, Robert L. Koch, Richard R. Rau and Arthur V. Siefert, left their employment at the semiconductor division of Sperry Rand Corporation.
The founding of the new company was followed by Sperry Rand filing a lawsuit against National Semiconductor for patent infringement.[3] By 1965, as it was reaching the courts, the preliminaries of the lawsuit had caused the stock value of National to be depressed. The depressed stock values allowed Peter J Sprague[4] to invest heavily in the company with Sprague's family funds. Sprague also relied on further financial backing from a pair of West Coast investment firms and a New York underwriter to take control as the chairman of National Semiconductor. At that time Sprague was 27 years old. Jeffrey S. Young characterized the era as the beginning of venture capitalism.[5]
That same year National Semiconductor acquired Molectro. Molectro was founded in 1962 in Santa Clara, California, by J. Nall and D. Spittlehouse, who were formerly employed at Fairchild Camera and Instrument Corporation. The acquisition also brought to National Semiconductor two experts in linear semiconductor technologies, Robert Widlar and Dave Talbert, who were also formerly employed at Fairchild. The acquisition of Molectro provided National with the technology to launch itself in the fabrication and manufacture of monolithic integrated circuits.[6][7]
In 1967, Sprague hired five top executives away from Fairchild, among whom were Charles E. Sporck and Pierre Lamond. At the time of Sporck's hiring, Robert Noyce was de facto head of semiconductor operations at Fairchild and Sporck was his operations manager.
Sporck was appointed president and CEO of National. To make the deal better for Sporck's hiring and appointment at half his former salary at Fairchild, Sporck was allotted a substantial share of National's stock. In essence, Sporck took four of his personnel from Fairchild with him as well as three others from TI, Perkin-Elmer, and Hewlett-Packard to form a new eight-man team at National Semiconductor.[5] Incidentally, Sporck had been Widlar's superior at Fairchild before Widlar left Fairchild to join Molectro after a compensation dispute with Sporck.[8]
In 1968, National shifted its headquarters from Danbury, Connecticut, to Santa Clara, California. However, like many companies, National retained its registration as a Delaware corporation, for legal and financial expediency.
Over the years National Semiconductor acquired several companies like Fairchild Semiconductor (1987), and Cyrix (1997). However, over time National Semiconductor spun off these acquisitions. Fairchild Semiconductor became a separate company again in 1997, and the Cyrix microprocessors division was sold to VIA Technologies of Taiwan in 1999.
From 1997 to 2002, National enjoyed a large amount of publicity and awards with the development of the Cyrix Media Center, Cyrix WebPad, WebPad Metro and National Origami PDA concept devices created by National's Conceptual Products Group. Based largely on the success of the WebPad, National formed the Information Appliance Division (highly integrated processors & "internet gadgets") in 1998. The Information Appliance Division was sold to AMD in 2003.[9]
Other businesses dealing in such products as digital wireless chipsets, image sensors, and PC I/O chipsets have also been recently closed down or sold off as National has reincarnated itself as a high-performance analog semiconductor company.
Peter Sprague, Pierre Lamond and the affectionately called Charlie Sporck worked hand-in-hand, with support of the board of directors to transform the company into a multinational and world-class semiconductor concern. Immediately after becoming CEO, Sporck started a historic price war among semiconductor companies, which then trimmed the number of competitors in the field. Among the casualties to exit the semiconductor business were General Electric and Westinghouse.[10]
Cost control, overhead reduction and a focus on profits implemented by Sporck was the key element to National surviving the price war and subsequently in 1981 becoming the first semiconductor company to reach the US$1 billion annual sales mark. However, the foundation that made National successful was its expertise in analog electronics, TTL (transistor–transistor logic) and MOSFET (metal–oxide–semiconductor field-effect transistor) integrated circuit technologies. As they had while employed in Fairchild, Sporck and Lamond directed National Semiconductor towards the growing industrial and commercial markets and began to rely less on military and aerospace contracts. Those decisions coupled with inflationary growth in use of computers provided the market for the expansion of National. Meanwhile, sources of funds associated with Sprague coupled with creative structuring of cash flow buffering due to Sporck and Lamond provided the financing required for that expansion. Lamond and Sporck had also managed to attract and extract substantial funds to finance the expansion.[11]
Among Sporck's cost control efforts was his offshore outsourcing of labour. National Semiconductor was among the pioneers in the semiconductor industry to invest in facilities to perform final manufacturing operations of integrated circuits in developing countries, especially in Southeast Asia.
National Semiconductor's manufacturing improvements under Sporck (in collaboration with Lamond) was enabled not by emphasizing process innovation but by improving and standardizing processes already established by other companies like Fairchild and Texas Instruments, as well as by frequent raiding to hire from Fairchild's pool of talents.
Weaknesses of Sporck's leadership
National Semiconductor under Sporck was not particularly invested in marketing strategies, even though it had the vision to launch itself into new and apparent opportunities in the consumer market. Sporck had applied strategies that made National Semiconductor function as a low-cost mass manufacturer of semiconductor commodities.[12]
A few key executives and engineers left the company in 1981. Among them was Pierre Lamond, who had been the chief IC designer (now partner at Sequoia Capital).[13] Robert Swanson's departure in the same year to found Linear Technology was another indication of the appropriateness of organisational strategies of National Semiconductor under Sporck. "For 13 of 14 years at National, I was a gung-ho guy. Then, the company started to get big. I kept looking at all the companies whose butts we'd been kicking. And then National started organizing itself like them. It was frustrating." Swanson said in the May 13, 1991, Business Journal-San Jose.
Sporck's strategy of outsourcing sales to external sources meant National Semiconductor did not have sufficient or responsive resources to respond to requests from innovators, inventors and academic research—which would have been helpful in the technological innovation boom of the 1980s.
National Semiconductor's lack and loss of innovation meant it was producing products that were easily copied and reproducible. It may have been the cheapest manufacturer in the United States, but it was not the cheapest compared to the Asian manufacturers. This weakness in National Semiconductor was evident in its failure to compete during the globalisation of Japanese semiconductor companies in the 1980s, followed by globalisation of Taiwanese and South Korean companies.
Leadership under Gilbert F. Amelio
On May 27, 1991, Charles E. Sporck was replaced by Gil Amelio as CEO and president. Amelio was then president of Rockwell International's semiconductor division and had a Ph.D. in physics from Georgia Institute of Technology. Amelio had also been formerly employed at Fairchild.
Amelio was faced with a company plagued with over-capacity and shrinking market share. Amelio found that, just prior to his taking helm, despite having spent US$1 billion over the last five years on research and development, National Semiconductor had a disappointing record in new products. The Business section of The New York Times January 11, 1991, reflected the over-capacity generated by Sporck that had to be inherited by Amelio.
Amelio disposed of the non-core products and assets in which National Semiconductor had no market motivation or expertise and turned the company towards its core expertise—analog semiconductors. National Semiconductor under Amelio emphasized on reduction of cost of sales, improving capacity utilization, scrap reduction and cycle-time reduction. Redundant facilities were sold and consolidated.
With the progress of restructuring, National Semiconductor increased revenues each year. In 1994, National Semiconductor under Amelio posted record net revenues of US$2.29 billion. It was also a time when US semiconductor companies had regained market leadership. Amelio introduced benchmarking to evaluate productivity, restructured marketing strategies and reorganised management by introducing modern management practices and workplace environments.
Amelio divided products into two divisions: Standard Products Group which comprised low-margin, logic and memory chips—commodity products which were more susceptible to cyclical demands and through which National Semiconductor had matured; and Communications & Computing Group which comprised high-margin, value-added analog and mixed-signal chips. Amelio's division of products seemed to prepare National Semiconductor for the eventual disposal of low-margin commodity products, which came to fruition later with the sale of a reconstituted Fairchild.
National Semiconductor under Amelio chose to build a brand new eight-inch (200mm) wafer fabrication plant in South Portland, Maine. It chose to divest itself of its then somewhat new plant in Migdal HaEmek, Israel, which became Tower Semiconductor.
In 1995, Amelio was elected as the chairman of the board of directors of National Semiconductor.
In 1996, Amelio accepted an invitation from Apple Computer, a customer of National Semiconductor, to join its board of directors. Troubles at Apple later prompted the board to invite Amelio to take on the position of CEO, which he accepted in February 1996. National Semiconductor announced the resignation of Amelio as the company's president, chairman and chief executive officer on February 2, 1996.[14]
Leadership under Brian L. Halla
National Semiconductor announced the appointment of Brian L. Halla as its chairman, president and CEO on May 3, 1996.[15] Halla was then the head of LSI logic products division. Prior to LSI, he had been with Intel for 14 years.
Halla reinforced Amelio's emphasis on the expertise of National Semiconductor in analog technology.[citation needed] He also was, on occasions, an evangelist for analog technology. However, he found that National Semiconductor under Amelio had too few product offerings.[citation needed] Halla embarked on a diversification into personal computer and graphics business.[citation needed]
He advocated PC-on-a-chip (aka system-on-a-chip) as a business direction for National Semiconductor.[citation needed] During his tenure at LSI, LSI had successfully applied similar concepts. However, LSI had steered clear of getting involved with PC technologies that would make it a competitor with Intel.[citation needed] Halla held the vision that information appliances (IAs) would succeed the personal computer as a trend.[citation needed] He predicted that IAs would overtake sales of PCs by the year 2000.[citation needed]
To achieve the goal, National Semiconductor started acquiring companies that would provide the needed technological complements. Among the acquisitions were Cirrus Logic Inc's PicoPower business, for its specialised expertise in small form factor devices; Mediamatics Inc, which makes multimedia connectivity products; Future Integrated Systems Inc, a PC graphics company; Gulbransen Inc, a digital audio technology maker; ComCore Semiconductor Inc, a maker of digital signal processing for LANs; Cyrix, the maker of Intel x86 clones.
On March 11, 1997, National Semiconductor Corporation announced the US$550 million sale of a reconstituted Fairchild to the management of Fairchild with the backing of Sterling LLC, a unit of Citicorp Venture Capital. Fairchild carried with it what was mostly the Standard Products group previously segregated by Amelio. Incidentally, the effective price of acquisition of Cyrix was also US$550 million.
On November 17, 1997, National Semiconductor and Cyrix announced the merger of the companies. Cyrix would become an autonomous wholly owned subsidiary. Halla had earlier emphasized that National was after the low-end CPU market as part of the system-on-a-chip pursuit and therefore would not place emphasis on Cyrix's current development of high-end 6x86MX design.[citation needed] However, Cyrix later announced that its merger with National Semiconductor would not change its development or marketing plans.[citation needed]
The acquisition of an independent-minded Cyrix subsequently turned National Semiconductor from a collaborator into a competitor with Intel. National lost its business with Intel.[citation needed] Intel reinstated the relationship after the sale of Cyrix.[citation needed]
The acquisition of Cyrix also carried with it a business obligation to use the IBM Microelectronics Division to fabricate the Cyrix chips,[citation needed], as well as technical constraint to do the same, while National Semiconductor had plans to transfer their fabrication to its South Portland fab.[citation needed] National incurred huge losses in its processor business and announced the sale of Cyrix to VIA in 1999.[citation needed]
In 1999, National Semiconductor also put out feelers for selling if not the whole, then a majority stake of, its fabrication plant in South Portland, Maine.[citation needed] However, that did not come to fruition.[citation needed]
On June 28, 2000, National Semiconductor and TSMC Taiwan signed an agreement that would allow transfer of advanced fabrication technologies from TSMC to the National Semiconductor fabrication plant in South Portland, Maine.[16][17]
On March 11, 2009, National announced plans to close its assembly and test plant in Suzhou, China, and its wafer fabrication plant in Arlington, Texas.[18]
On October 9, 2009, Brian Halla announced his retirement as National's CEO. He remains executive chairman. The company promoted Donald (Don) Macleod, who had previously served as the company's president and chief operating officer, to CEO.[citation needed]
Leadership under Donald Macleod
Don Macleod became National Semiconductor's chief executive officer on November 30, 2009. He was named chairman of the board on May 31, 2010.
On April 4, 2011, Texas Instruments announced that it had agreed to buy National Semiconductor for $6.5 billion in cash. Texas Instruments paid $25 per share of National Semiconductor stock, an 80% premium over the April 4, 2011, closing share price of $14.07. The deal made Texas Instruments one of the world's largest makers of analog technology components.[19] On September 19, 2011, the Chinese minister approved the merger, the last one needed.[citation needed] The companies formally merged on September 23, 2011.[20]
Started its first then state-of-the-art four-inch wafer fabrication operation in West Jordan, a suburb of Salt Lake City, Utah.
1979
Opened its assembly plant for high reliability components used in aerospace applications in Tucson, Arizona.
1985
Six-inch wafer fabrication operation started in Arlington, Texas.
1987
Acquired Fairchild Semiconductor Corporation from Schlumberger. Inherited facilities housing Fairchild's headquarters and wafer fabrication operations in South Portland, Maine.
1989
Facilities in Danbury, Connecticut closed.
1990
Consolidated Singapore manufacturing operations in Bukit Merah district into Fairchild's Toa Payoh facilities.
Closed assembly operations in Tucson, Arizona. Retained the site as a design center.
1995
Sold DynaCraft (with locations in Santa Clara, California; Murrysville, Pennsylvania; and Penang, Malaysia) to Carsem Enterprises, the semiconductor division of Malaysia Pacific Industries.
1996
The construction of a ~$932 million eight-inch fabrication plant started in a location abutting formerly Fairchild facilities in South Portland.
1997
Eight-inch wafer fabrication operations became fully functional.
1997
National Semiconductor executives led by Kirk Pond, who was also an executive of the former Fairchild, acquired funding to buy a reconstituted Fairchild Semiconductor for US$550 million.
The reconstitution was characterised by the new Fairchild being allotted the formerly National Semiconductor locations at Penang (Malaysia), Cebu (Philippines), West Jordan/Salt Lake City (Utah) while National retained the formerly Fairchild location of Toa Payoh (Singapore).
2002
Started construction of $200 million final-manufacturing operations plant in Suzhou, Jiangsu, China.
2004
Started final-manufacturing operations in Suzhou, China.
2005
Closed final-manufacturing operations in Toa Payoh, Singapore. Transferred all manufacturing operations to Melaka, Malaysia and Suzhou, China.
2009
Closed final-manufacturing operations in Suzhou, China and wafer fabrication plant in Arlington, Texas. Transferred all final-manufacturing operations to Melaka, Malaysia and wafer fabrication to South Portland, Maine and Greenock, Scotland.
National Semiconductor also had operations in Migdal (tower) Ha'Emeq (valley), Israel. National Semiconductor had six inch (152mm) wafer fabrication operations there. In 1993, National Semiconductor divested to retain 19% ownership of the plant. The plant in Migdal Ha'Emeq, Israel is now constituted as Tower Semiconductor of Israel.
History of National Semiconductor logo and product identification
National Semiconductor "NS" monogram (top) and wave (bottom) logos used on chip markings
The following picture excerpts illustrate the history of identification marks of National Semiconductor.
National Semiconductor logo during the time of Charlie Sporck. From an old National Semiconductor calculator.
National Semiconductor logo during the latter time of Charlie Sporck till the time of Gil Amelio. From an IC manufactured during the time of Gil Amelio.
Most recent/current National Semiconductor identification. From a National Semiconductor brochure.
An integrated circuit (IC), also known as a microchip, computer chip, or simply chip, is a small electronic device made up of multiple interconnected electronic components such as transistors, resistors, and capacitors. These components are etched onto a small piece of semiconductor material, usually silicon. Integrated circuits are used in a wide range of electronic devices, including computers, smartphones, and televisions, to perform various functions such as processing and storing information. They have greatly impacted the field of electronics by enabling device miniaturization and enhanced functionality.
Texas Instruments Incorporated (TI) is an American multinational semiconductor company headquartered in Dallas, Texas. It is one of the top 10 semiconductor companies worldwide based on sales volume. The company's focus is on developing analog chips and embedded processors, which account for more than 80% of its revenue. TI also produces digital light processing (DLP) technology and education technology products including calculators, microcontrollers, and multi-core processors.
Complementary metal–oxide–semiconductor is a type of metal–oxide–semiconductor field-effect transistor (MOSFET) fabrication process that uses complementary and symmetrical pairs of p-type and n-type MOSFETs for logic functions. CMOS technology is used for constructing integrated circuit (IC) chips, including microprocessors, microcontrollers, memory chips, and other digital logic circuits. CMOS technology is also used for analog circuits such as image sensors, data converters, RF circuits, and highly integrated transceivers for many types of communication.
Atmel Corporation was a creator and manufacturer of semiconductors before being subsumed by Microchip Technology in 2016. Atmel was founded in 1984. The company focused on embedded systems built around microcontrollers. Its products included microcontrollers radio-frequency (RF) devices including Wi-Fi, EEPROM, and flash memory devices, symmetric and asymmetric security chips, touch sensors and controllers, and application-specific products. Atmel supplies its devices as standard products, application-specific integrated circuits (ASICs), or application-specific standard product (ASSPs) depending on the requirements of its customers.
Cyrix Corporation was a microprocessor developer that was founded in 1988 in Richardson, Texas, as a specialist supplier of floating point units for 286 and 386 microprocessors. The company was founded by Tom Brightman and Jerry Rogers.
STMicroelectronics NV is a European multinational semiconductor contract manufacturing and design company. It is the largest of such companies in Europe. It was founded in 1987 from the merger of two state-owned semiconductor corporations: Thomson Semiconducteurs of France and SGS Microelettronica of Italy. The company is incorporated in the Netherlands and headquartered in Plan-les-Ouates, Switzerland. Its shares are traded on Euronext Paris, the Borsa Italiana and the New York Stock Exchange.
Fairchild Semiconductor International, Inc. was an American semiconductor company based in San Jose, California. It was founded in 1957 as a division of Fairchild Camera and Instrument by the "traitorous eight" who defected from Shockley Semiconductor Laboratory. It became a pioneer in the manufacturing of transistors and of integrated circuits. Schlumberger bought the firm in 1979 and sold it to National Semiconductor in 1987; Fairchild was spun off as an independent company again in 1997. In September 2016, Fairchild was acquired by ON Semiconductor.
Walter Jeremiah Sanders III is an American businessman and engineer who was a co-founder and long-time CEO of the American semiconductor manufacturer Advanced Micro Devices (AMD), serving in the position from 1969 to 2002.
The semiconductor industry is the aggregate of companies engaged in the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits. It formed around 1960, once the fabrication of semiconductor devices became a viable business. The industry's annual semiconductor sales revenue has since grown to over $481 billion, as of 2018.
Teradyne, Inc., is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts. Teradyne's high-profile customers include Samsung, Qualcomm, Intel, Analog Devices, Texas Instruments and IBM.
Mostek Corporation was a semiconductor integrated circuit manufacturer, founded in 1969 by L. J. Sevin, Louay E. Sharif, Richard L. Petritz and other ex-employees of Texas Instruments. At its peak in the late 1970s, Mostek held an 85% market share of the dynamic random-access memory (DRAM) memory chip market worldwide, until being eclipsed by lower-priced Japanese DRAM manufacturers who were accused of dumping memory on the market.
VLSI Technology, Inc., was an American company that designed and manufactured custom and semi-custom integrated circuits (ICs). The company was based in Silicon Valley, with headquarters at 1109 McKay Drive in San Jose. Along with LSI Logic, VLSI Technology defined the leading edge of the application-specific integrated circuit (ASIC) business, which accelerated the push of powerful embedded systems into affordable products.
An integrated device manufacturer (IDM) is a semiconductor company which designs, manufactures, and sells integrated circuit (IC) products.
Robert John Widlar was an American electronics engineer and a designer of linear integrated circuits (ICs).
ON Semiconductor Corporation is an American semiconductor supplier company, based in Scottsdale, Arizona. Products include power and signal management, logic, discrete, and custom devices for automotive, communications, computing, consumer, industrial, LED lighting, medical, military/aerospace and power applications. onsemi runs a network of manufacturing facilities, sales offices and design centers in North America, Europe, and the Asia Pacific regions. Based on its 2016 revenues of $3.907 billion, onsemi ranked among the worldwide top 20 semiconductor sales leaders, and was ranked No. 483 on the 2022 Fortune 500 based on its 2021 sales.
PMOS or pMOS logic is a family of digital circuits based on p-channel, enhancement mode metal–oxide–semiconductor field-effect transistors (MOSFETs). In the late 1960s and early 1970s, PMOS logic was the dominant semiconductor technology for large-scale integrated circuits before being superseded by NMOS and CMOS devices.
Tower Semiconductor Ltd. is an Israeli company that manufactures integrated circuits using specialty process technologies, including SiGe, BiCMOS, Silicon Photonics, SOI, mixed-signal and RFCMOS, CMOS image sensors, non-imaging sensors, power management (BCD), and non-volatile memory (NVM) as well as MEMS capabilities. Tower Semiconductor also owns 51% of TPSCo, an enterprise with Nuvoton Technology Corporation Japan (NTCJ).
The first planar monolithic integrated circuit (IC) chip was demonstrated in 1960. The idea of integrating electronic circuits into a single device was born when the German physicist and engineer Werner Jacobi developed and patented the first known integrated transistor amplifier in 1949 and the British radio engineer Geoffrey Dummer proposed to integrate a variety of standard electronic components in a monolithic semiconductor crystal in 1952. A year later, Harwick Johnson filed a patent for a prototype IC. Between 1953 and 1957, Sidney Darlington and Yasuo Tarui proposed similar chip designs where several transistors could share a common active area, but there was no electrical isolation to separate them from each other.
↑ Short History of National Semiconductor in International Directory of Company Histories, Volume 69 (1998) by Jonathan Martin, David Salamie, Nelson Rhodes
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
$1.42 billion USD (2010)
