Signetics
Signetics, once a major player in semiconductor manufacturing, made a variety of devices which included
integrated circuits,
bipolar and
MOS, the
Dolby circuit, logic, memory and
analog circuits and
Motorola clone
CPUs, some of which were included in the first
Atari video games.
Signetics was started in
1961 by a group of engineers who left
Fairchild Semiconductor. At the time, Fairchild was concentrating on its component business (mostly
transistors), and its management felt that by making integrated circuits (ICs) it would alienate its customers.
Signetics founders believed that ICs were the future of electronics (much like another contemporary Fairchild spinoff,
Amelco,) and wished to commercialize them. The name came from SIGnal NETwork Integrated Circuits, similar to how the name
Intel was created.
The venture was financed by a group organized through
Lehman Brothers, who invested $1M. The initial idea was to design and manufacture ICs for specific customers. In order to facilitate this goal, Signetics did not have a separate R&D lab; instead, the engineering was all done in technical development department, and was closely tied to marketing.
Signetics first developed a series of standard
DTL ICs, which it announced in
1962. However, it was struggling to sell custom-made circuits, which was the original goal, and was quickly exhausting the initial investment money, and new investors had to be found. In November 1962,
Corning Glass invested another $1.7M in Signetics, in exchange for 51% ownership. This money enabled Signetics to survive, and much of it was put into a marketing and sales campaign.
In
1963, the
department of defense made a decision to begin a shift towards microelectronics and ICs, due to their small size, higher reliability, and lower power consumption. As a result, military contractors began to explore the field, and as Signetics was one of the few firms selling custom circuits, it benefited greatly.
In the fall of 1963 and throughout most of
1964, sales grew quickly, and the company finally became profitable. Signetics also grew rapidly, hiring more engineers and increasing its manufacturing space. In 1964, Signetics opened a large new manufacturing plant in
Sunnyvale, California. At this time it was by far the largest manufacturer of ICs in
Silicon Valley. It later expanded also to factories in
Orem, Utah and
Albuquerque,
New Mexico where there were two fabs, FAB22(4") and FAB23(6").
In 1964, Fairchild began to push its way into the IC business. Signetics's circuits being the standard in the market, Fairchild decided to copy them. However, it used its superior cash position, marketing power, and manufacturing strength, to undercut Signetics, by slashing prices and flooding the market. Signetics was struggling to compete, and began losing money again. Corning saw this as proof of poor management, and used its controlling interest to drive out most of the founders and take complete control of the company.
Signetics managed to stabilize and become profitable again, but it never regained its market leadership, which was firmly held by Fairchild. It continued to innovate in the IC technology, and remained a significant force. Around
1971, the
Signetics Corporation introduced the
555 timer IC. It was called "The IC Time Machine". It was also the first and only commercial IC timer available at the time. In the United States, Signetics reached its manufacturing height at around
1980. From then on the Signetics brand slowly disintegrated in the face of competition from
AMD and
Intel.
In Korea, "Signetics began IC assembly and test operations in Korea in 1966 as part of Signetics Corporation. It was acquired by
Philips Semiconductor in 1975, and became an independent subcontract service provider in 1995.
Young Poong Corporation acquired Signetics in 2000 as a major shareholder." (from the Signetics website, Jan. 2006)
*
Write Only Memory* Lécuyer, C.
Making Silicon Valley: Innovation and the Growth of High Tech, 1930-1970, MIT Press, 2006. ISBN 0262122812
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www.signetics.com*
Emulator2001 the Signetics 2650 and 2637 based emulator
