Integrated Telecom Technology
Encyclopedia
Integrated Telecom Technology, Inc., known as "IgT" was a fabless semiconductor company founded in 1991 by Ken Lee, Greg Werth, Imran Chaudhri, Jerry Tall, and Chi Wai in Gaithersburg, Maryland. IgT was one of the first companies to focus on semiconductors for the communications marketplace. At its peak, IgT had 60 employees, 45 in its headquarters in Gaithersburg, Maryland and 15 in the San Jose, California
San Jose, California
San Jose is the third-largest city in California, the tenth-largest in the U.S., and the county seat of Santa Clara County which is located at the southern end of San Francisco Bay...

 office. IgT's logo showed an idealized waveform of a T1 signal.

Early products

IgT's first product was a B8ZS framer device for the T1
Digital Signal 1
Digital signal 1 is a T-carrier signaling scheme devised by Bell Labs. DS1 is a widely used standard in telecommunications in North America and Japan to transmit voice and data between devices. E1 is used in place of T1 outside North America, Japan, and South Korea...

 market. IgT also introduced a OC-3 ATM
Asynchronous Transfer Mode
Asynchronous Transfer Mode is a standard switching technique designed to unify telecommunication and computer networks. It uses asynchronous time-division multiplexing, and it encodes data into small, fixed-sized cells. This differs from approaches such as the Internet Protocol or Ethernet that...

 framer device that was competitive in the marketplace. This device was designed by Imran Chaudhri who was a central figure in many of IgT's developments.

The name

The acronym IgT was used because IGT was already in use by International Game Technology
International Game Technology
International Game Technology is a Nevada based company specializing in the design, development, manufacturing, sales and distribution of gaming machines and network system products internationally, as well as online and mobile gaming solutions for regulated markets. The company's main offices are...

. The acronym ITT also could not be used given the historic firm ITT in the telecom industry. IgT did own the domain name igt.com, which has subsequently been sold back to IGT.

Samsung relationship

In January 1994, IgT engaged with the Telecom division of Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

 in Korea
Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...

 to build an ATM Switch chip set for use in the StarRacer system. This chip set was developed under contract with Network Synthesis, Inc. known as "NSI", a small chip design firm. This led to the investment and eventual majority ownership of IgT by Samsung.

Network Synthesis acquisition

In June 1996 IgT acquired NSI, whose CEO and principal design engineer, Brian Holden, became CTO of IgT. NSI was also developing an AAL-1 SAR known as the AAL1gator
AAL1gator
The AAL1gator is a semiconductor device that implements the Circuit Emulation Service. It was developed between 1994 and 1998 and became a run-away success. It also played a role in the acquisition of four companies. The name was based on the fact that the AAL1gator implements the ATM AAL-1...

 under contract with IgT. After the acquisition, the AAL1gator
AAL1gator
The AAL1gator is a semiconductor device that implements the Circuit Emulation Service. It was developed between 1994 and 1998 and became a run-away success. It also played a role in the acquisition of four companies. The name was based on the fact that the AAL1gator implements the ATM AAL-1...

 became a very successful product and drove IgT's eventual acquisition by PMC-Sierra
PMC-Sierra
PMC-Sierra is a fabless semiconductor company which develops and sells devices into the communications, storage, printing, and embedded computing marketplaces.-Corporate history:...

, Inc. The AAL1gator was also a contributing factor in the acquisitions of OnStream Networks
OnStream Networks
OnStream Networks was a Santa Clara, California-based supplier of Circuit Emulation Service based Asynchronous Transfer Mode solutions. It was formerly T3Plus....

 by 3Com
3Com
3Com was a pioneering digital electronics manufacturer best known for its computer network infrastructure products. The company was co-founded in 1979 by Robert Metcalfe, Howard Charney, Bruce Borden, and Greg Shaw...

 in 1996 and Sentient Networks
Sentient Networks
Sentient Networks was a San Jose, California based supplier of Asynchronous Transfer Mode and Frame Relay central office concentrators and switches.-Market space:...

 by Cisco Systems
Cisco Systems
Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California, United States, that designs and sells consumer electronics, networking, voice, and communications technology and services. Cisco has more than 70,000 employees and annual revenue of US$...

 in 1998; both of these companies had developed systems that strongly leveraged the AAL1gator's capabilities.

Joint development with Ericsson

The San Jose office also developed an ATM switch chip set in a joint development with Ericsson
Ericsson
Ericsson , one of Sweden's largest companies, is a provider of telecommunication and data communication systems, and related services, covering a range of technologies, including especially mobile networks...

 Telecom of Sweden. Chee Hu was a central figure in this development. This was a multi-year development that led to the successful AXD-301 ATM switch deployment by Ericsson. This system was used heavily in British Telecom's network. This chipset led to 9 ATM related patents being awarded to IgT and PMC-Sierra.

PMC-Sierra acquisition

The AAL1Gator device was designed to connect to T1/E1 framers sold by PMC-Sierra
PMC-Sierra
PMC-Sierra is a fabless semiconductor company which develops and sells devices into the communications, storage, printing, and embedded computing marketplaces.-Corporate history:...

. The runaway success of the AAL1gator
AAL1gator
The AAL1gator is a semiconductor device that implements the Circuit Emulation Service. It was developed between 1994 and 1998 and became a run-away success. It also played a role in the acquisition of four companies. The name was based on the fact that the AAL1gator implements the ATM AAL-1...

 device drove the sales of many additional T1/E1 framers by PMC. This led to the acquisition of IgT by PMC-Sierra
PMC-Sierra
PMC-Sierra is a fabless semiconductor company which develops and sells devices into the communications, storage, printing, and embedded computing marketplaces.-Corporate history:...

, Inc. in May of 1998 for USD $55M. This was also driven by the Asian financial crisis of 1997/1998 which caused Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...

 to become interested in selling its interest in the company. The AAL1gator
AAL1gator
The AAL1gator is a semiconductor device that implements the Circuit Emulation Service. It was developed between 1994 and 1998 and became a run-away success. It also played a role in the acquisition of four companies. The name was based on the fact that the AAL1gator implements the ATM AAL-1...

 also sold well for PMC-Sierra
PMC-Sierra
PMC-Sierra is a fabless semiconductor company which develops and sells devices into the communications, storage, printing, and embedded computing marketplaces.-Corporate history:...

.

Update

In 2003 PMC-Sierra shut down the IgT office in Gaithersburg, Maryland laying off all of the remaining employees there. A number of the San Jose office employees remain with the company.

Several of the devices produced by IgT remain for sale by PMC. A number of other devices were discontinued when LSI Logic dropped support for the fabrication process in which they were made.

IgT in Retrospect

Despite the shutdown of the IgT design center in Gaithersburg in the aftermath of the telecom bubble, IgT was a fair investment for PMC-Sierra. The substantial rate of return from IgT is due to the combination of the moderate price paid by PMC, the strong financial return provided by the AAL1gator family of products, and the contribution of the remaining San Jose team to several successful PMC projects, including the strong selling Arrow2xGE Ethernet over SONET mapping device. When evaluated on a rate of ROI basis (rate of Return on Investment), IgT likely ranks second amongst the 14 Sierra/PMC-Sierra acquisitions, behind the acquisition of PMC by Sierra Semiconductor.

External links

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