National Semiconductor

Founding[edit]

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.