Signetics
Encyclopedia
Signetics, once a major player in semiconductor manufacturing, made a variety of devices which included integrated circuit
s, bipolar
and MOS
, the Dolby circuit, logic, memory and analog circuits. They developed microprocessors like the 2650
, the bipolar 8X300 and had licensed Motorola
68000 technology. Derivatives of this were used in the first Atari
video games.
. 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 Electronics, 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. In 1975 it was acquired by Philips
, who continued the brand for some years. Later it was fully integrated into Philips Semiconductors (now NXP).
In 1995 Philips spun off the assembly and test operation in Korea, which was started by Signetics in 1966, as an independent subcontract service provider. They continue to use the name Signetics. Since 2000 Signetics is primarily owned by the Young Poong Group.
Integrated circuit
An integrated circuit or monolithic integrated circuit is an electronic circuit manufactured by the patterned diffusion of trace elements into the surface of a thin substrate of semiconductor material...
s, bipolar
Bipolar junction transistor
|- align = "center"| || PNP|- align = "center"| || NPNA bipolar transistor is a three-terminal electronic device constructed of doped semiconductor material and may be used in amplifying or switching applications. Bipolar transistors are so named because their operation involves both electrons...
and MOS
MOSFET
The metal–oxide–semiconductor field-effect transistor is a transistor used for amplifying or switching electronic signals. The basic principle of this kind of transistor was first patented by Julius Edgar Lilienfeld in 1925...
, the Dolby circuit, logic, memory and analog circuits. They developed microprocessors like the 2650
Signetics 2650
The Signetics 2650, was a very early 8-bit microprocessor. According to Adam Osborne's classic book An Introduction to Microprocessors Vol 2: Some Real Products, it was "the most minicomputer-like" of the microprocessors available at the time....
, the bipolar 8X300 and had licensed Motorola
Motorola
Motorola, Inc. was an American multinational telecommunications company based in Schaumburg, Illinois, which was eventually divided into two independent public companies, Motorola Mobility and Motorola Solutions on January 4, 2011, after losing $4.3 billion from 2007 to 2009...
68000 technology. Derivatives of this were used in the first Atari
Atari
Atari is a corporate and brand name owned by several entities since its inception in 1972. It is currently owned by Atari Interactive, a wholly owned subsidiary of the French publisher Atari, SA . The original Atari, Inc. was founded in 1972 by Nolan Bushnell and Ted Dabney. It was a pioneer in...
video games.
Historical overview
Signetics was started in 1961 by a group of engineers -- David Allison, David James, Lionel Kattner, and Mark Weissenstern -- who left Fairchild SemiconductorFairchild Semiconductor
Fairchild Semiconductor International, Inc. is an American semiconductor company based in San Jose, California. Founded in 1957, it was a pioneer in transistor and integrated circuit manufacturing...
. 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 Electronics, similar to how the name Intel was created.
The venture was financed by a group organized through Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
, 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
United States Department of Defense
The United States Department of Defense is the U.S...
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
Sunnyvale, California
Sunnyvale is a city in Santa Clara County, California, United States. It is one of the major cities that make up the Silicon Valley located in the San Francisco Bay Area...
. At this time it was by far the largest manufacturer of ICs in Silicon Valley
Silicon Valley
Silicon Valley is a term which refers to the southern part of the San Francisco Bay Area in Northern California in the United States. The region is home to many of the world's largest technology corporations...
. It later expanded also to factories in Orem, Utah
Orem, Utah
Orem is a city in Utah County, Utah, United States, in the north-central part of the state. It is adjacent to Provo, Lindon, and Vineyard and is about south of Salt Lake City. Orem is one of the principal cities of the Provo-Orem, Utah Metropolitan Statistical Area, which includes all of Utah and...
and Albuquerque, New Mexico
Albuquerque, New Mexico
Albuquerque is the largest city in the state of New Mexico, United States. It is the county seat of Bernalillo County and is situated in the central part of the state, straddling the Rio Grande. The city population was 545,852 as of the 2010 Census and ranks as the 32nd-largest city in the U.S. As...
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
555 timer IC
The 555 timer IC is an integrated circuit used in a variety of timer, pulse generation and oscillator applications. The part is still in widespread use, thanks to its ease of use, low price and good stability. , it was estimated that 1 billion units are manufactured every year.- Design :The 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. In 1975 it was acquired by Philips
Philips
Koninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
, who continued the brand for some years. Later it was fully integrated into Philips Semiconductors (now NXP).
In 1995 Philips spun off the assembly and test operation in Korea, which was started by Signetics in 1966, as an independent subcontract service provider. They continue to use the name Signetics. Since 2000 Signetics is primarily owned by the Young Poong Group.