fabless semiconductor company
Fabless manufacturing is the design and sale of hardware devices and semiconductor chips while outsourcing their fabrication (or ''fab'') to a specialized manufacturer called a semiconductor foundry. These foundries are typically, but not exclu ...
based in
Milpitas, California
Milpitas (Spanish for or little cornfields) is a city in Santa Clara County, California, part of Silicon Valley and the broader San Francisco Bay Area. Located on the eastern shore of San Francisco Bay, it is bordered by San Jose, California, S ...
, that primarily manufactured
chipset
In a computer system, a chipset is a set of electronic components on one or more integrated circuits that manages the data flow between the processor, memory and peripherals. The chipset is usually found on the motherboard of computers. Chips ...
s for
personal computer
A personal computer, commonly referred to as PC or computer, is a computer designed for individual use. It is typically used for tasks such as Word processor, word processing, web browser, internet browsing, email, multimedia playback, and PC ...
s. The company dissolved in 2001 and transferred its assets to the unaffiliated
non-practicing entity
In international law and business, patent trolling or patent hoarding is a categorical or pejorative term applied to a person or company that attempts to enforce patent rights against accused infringers far beyond the patent's actual value or ...
OPTi Technologies (itself later renamed OPTi Inc.)
History
OPTi Inc. was formed in 1989 in
Milpitas, California
Milpitas (Spanish for or little cornfields) is a city in Santa Clara County, California, part of Silicon Valley and the broader San Francisco Bay Area. Located on the eastern shore of San Francisco Bay, it is bordered by San Jose, California, S ...
, by former employees of
Chips and Technologies
Chips and Technologies, Inc. (C&T), was an early fabless semiconductor company founded in Milpitas, California, in December 1984 by Gordon A. Campbell and Dado Banatao.
Its first product, announced September 1985, was a four chip Enhanced Graph ...
. Cash-strapped on a "shoe-string udget on its foundation, among the company's first products was a trio of VLSI chipsets for
i386SX
The Intel 386, originally released as the 80386 and later renamed i386, is the third-generation x86 architecture microprocessor from Intel. It was the first 32-bit processor in the line, making it a significant evolution in the x86 archite ...
- and
i486
The Intel 486, officially named i486 and also known as 80486, is a microprocessor introduced in 1989. It is a higher-performance follow-up to the i386, Intel 386. It represents the fourth generation of binary compatible CPUs following the Inte ...
CPU cache
A CPU cache is a hardware cache used by the central processing unit (CPU) of a computer to reduce the average cost (time or energy) to access data from the main memory. A cache is a smaller, faster memory, located closer to a processor core, whi ...
for 386SX motherboards; the second was a burst-mode CPU cache for 486 motherboards; and the third was a
interleaved memory
In computing, interleaved memory is a design which compensates for the relatively slow speed of dynamic random-access memory (DRAM) or core memory, by spreading memory addresses evenly across memory banks. That way, contiguous memory reads and ...
module for 486 motherboards. OPTi measured the latter two chipsets to reduce the component count on 486 motherboards clocked at 40 MHz (or 11 MIPS) to as few as 20. In 1991, Chips and Technologies filed a
patent infringement
A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A ...
suit against OPTi, alleging unauthorized use of two of C&T's patents regarding
semiconductor memory
Semiconductor memory is a digital electronic semiconductor device used for digital data storage, such as computer memory. It typically refers to devices in which data is stored within metal–oxide–semiconductor (MOS) memory cells on a si ...
designs and particularly interleaved memory schemes, but a federal judge later ruled in OPTi's favor.
In early 1992, the company developed one of the first local bus designs for
IBM PC compatible
An IBM PC compatible is any personal computer that is hardware- and software-compatible with the IBM Personal Computer (IBM PC) and its subsequent models. Like the original IBM PC, an IBM PC–compatible computer uses an x86-based central p ...
s. It soon found itself competing with
VESA
VESA (), formally known as Video Electronics Standards Association, is an American standards organization, technical standards organization for computer display standards. The organization was incorporated in California in July 1989To retrieve ...
's
implementation
Implementation is the realization of an application, execution of a plan, idea, scientific modelling, model, design, specification, Standardization, standard, algorithm, policy, or the Management, administration or management of a process or Goal ...
and the nascent
PCI
PCI may refer to:
Business and economics
* Payment card industry, businesses associated with debit, credit, and other payment cards
** Payment Card Industry Data Security Standard, a set of security requirements for credit card processors
* Prov ...
bus standard by
Intel
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, and Delaware General Corporation Law, incorporated in Delaware. Intel designs, manufactures, and sells computer compo ...
. It survived into the
Pentium
Pentium is a series of x86 architecture-compatible microprocessors produced by Intel from 1993 to 2023. The Pentium (original), original Pentium was Intel's fifth generation processor, succeeding the i486; Pentium was Intel's flagship proce ...
era before OPTi submitted to Intel and began manufacturing PCI chipsets. Later in 1992, they introduced a programmablewritethrough– writeback cache chipset for the contemporary wave of upgradable motherboards, supporting up to 64 MB of RAM and processors by Intel,
Cyrix
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. Ter ...
, and
AMD
Advanced Micro Devices, Inc. (AMD) is an American multinational corporation and technology company headquartered in Santa Clara, California and maintains significant operations in Austin, Texas. AMD is a hardware and fabless company that de ...
.
OPTi had a peak workforce of 235 employees and US$164 million in annual sales in the early 1990s; only three years after its inception, OPTi's revenue for fiscal year 1991 reached $100 million, under CEO Kenny Liu (b. 1954). Although considered a small company, OPTi's
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
in 1993 proved successful in the short term. However, the ramping-up of Intel's chipset manufacturing in 1994 challenged OPTi's presence in their market. While Intel saw OPTi as its nearest competitor then, Intel accounted for 66 percent of all sales of Pentium-class chipsets, with OPTi at 10 percent and Taiwan-based
SIS
Sis or SIS may refer to:
People
*Michael Sis (born 1960), American Catholic bishop
Places
* Sis (ancient city), historical town in modern-day Turkey, served as the capital of the Armenian Kingdom of Cilicia.
* Kozan, Adana, the current name ...
at 7 percent. Liu stepped down from his role as CEO in 1994, remaining chairman of the board.
OPTi was reasonably more successful in the mobile chipset arena, starting with i486-based chipsets for
notebooks
A notebook is a small book often used for writing.
Notebook or The Notebook may also refer to:
Computing
*Laptop, a type of personal computer
**Notebook (laptop), a specific, smaller class of laptop
*Google Notebook, a discontinued online appli ...
and other
portable computer
A portable computer is a computer designed to be easily moved from one place to another, as opposed to those designed to remain stationary at a single location such as desktops and workstations. These computers usually include a display a ...
s in 1994, earning design wins from
Toshiba
is a Japanese multinational electronics company headquartered in Minato, Tokyo. Its diversified products and services include power, industrial and social infrastructure systems, elevators and escalators, electronic components, semiconductors ...
,
NEC
is a Japanese multinational information technology and electronics corporation, headquartered at the NEC Supertower in Minato, Tokyo, Japan. It provides IT and network solutions, including cloud computing, artificial intelligence (AI), Inte ...
, and
Hewlett-Packard
The Hewlett-Packard Company, commonly shortened to Hewlett-Packard ( ) or HP, was an American multinational information technology company. It was founded by Bill Hewlett and David Packard in 1939 in a one-car garage in Palo Alto, California ...
with their PCI-based Viper-N chipset from December 1994 to mid-1995. OPTi's Viper-M chipset, their challenger to Intel's Triton chipset on the desktop, was notable for supporting Cyrix's then-unreleased
6x86
The Cyrix 6x86 is a line of sixth-generation, 32-bit x86 microprocessors designed and released by Cyrix in 1995. Cyrix, being a fabless company, had the chips manufactured by IBM and SGS-Thomson. The 6x86 was made as a direct competitor to Intel ...
processor, as well as AMD's K5—both competitors to Intel's Pentium, which Viper-M also supported. Contemporary chipsets from Intel only had support for the Pentium. In September 1995, OPTi joined an alliance with semiconductor fabricator
United Microelectronics Corporation
United Microelectronics Corporation (UMC; ) is a Taiwanese company based in Hsinchu, Taiwan. It was founded as Taiwan's first semiconductor company in 1980 as a spin-off of the government-sponsored Industrial Technology Research Institute (ITRI ...
and several other fabless companies including SIS to raise a
350
__NOTOC__
Year 350 ( CCCL) was a common year starting on Monday of the Julian calendar. At the time, it was known as the Year of the Consulship of Sergius and Nigrinianus (or, less frequently, year 1103 ''Ab urbe condita''). The denomination 3 ...
Hsinchu
Hsinchu (, ), officially Hsinchu City, is a city located in northwestern Taiwan. It is the most populous city in Taiwan that is not a special municipality, with estimated 450,655 inhabitants. Hsinchu is a coastal city bordering the Taiwan ...
, Taiwan, in late 1995 or early 1996.
OPTi dabbled with 2D
graphics processing unit
A graphics processing unit (GPU) is a specialized electronic circuit designed for digital image processing and to accelerate computer graphics, being present either as a discrete video card or embedded on motherboards, mobile phones, personal ...
design with the TrueColor GUI Accelerator in August 1995. Two years prior, the company had acquired MediaChips Inc., a designer of low-cost digital
sound chip
A sound chip is an integrated circuit (chip) designed to produce audio signals through digital, analog or mixed-mode electronics. Sound chips are typically fabricated on metal–oxide–semiconductor (MOS) mixed-signal chips that process a ...
s, whose patents for a single-chip sound controller they used to design the OPTi 929 in 1994. In 1997, OPTi and Singapore-based TriTech Microelectronics were sued by Crystal Semiconductor, a subsidiary of
Cirrus Logic
Cirrus Logic Inc. is an American fabless semiconductor company, fabless semiconductor supplier that specializes in analog, mixed-signal, and audio Digital signal processor, DSP integrated circuits (ICs). Since 1998, the company's headquarters have ...
, for alleged patent infringement of Crystal's
mixed-signal
A mixed-signal integrated circuit is any integrated circuit that has both analog circuits and digital circuits on a single semiconductor die.Native Signal Processing technology. The courts ruled in favor of Crystal in late 1999 or early 2000, ordering TriTech and OPTi to pay their portion of a combined $20 million.
Dissolution, sale, and litigation streak
OPTi found itself unable to compete against Intel's newfound dominance in the chipset market, with sales all but disappearing by late 1998. The company, which had moved to
Palo Alto, California
Palo Alto ( ; Spanish language, Spanish for ) is a charter city in northwestern Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree known as El Palo Alto.
Th ...
, appointed Bernie Marren as CEO that year. Marren, who had been a board director since 1996, steered the company away from the chipset business in 1999, in favor of developing
microcontroller
A microcontroller (MC, uC, or μC) or microcontroller unit (MCU) is a small computer on a single integrated circuit. A microcontroller contains one or more CPUs (processor cores) along with memory and programmable input/output peripherals. Pro ...
USB
Universal Serial Bus (USB) is an industry standard, developed by USB Implementers Forum (USB-IF), for digital data transmission and power delivery between many types of electronics. It specifies the architecture, in particular the physical ...
and
IEEE 1394
IEEE 1394 is an interface standard for a serial bus for high-speed communications and isochronous real-time data transfer. It was developed in the late 1980s and early 1990s by Apple in cooperation with a number of companies, primarily Sony a ...
(FireWire) serial buses. These products however barely broke even, and in September 2001, OPTi's board of directors voted unanimously to dissolve the company, subject to approval in November 2001. After a year of dormancy, the company sold its semiconductor business and assets to the unaffiliated company OPTi Technologies. Marren soon took the reins of OPTi Technologies, and the company shortly after renamed themselves OPTi Inc.
This incarnation of OPTi Inc. became known as a
non-practicing entity
In international law and business, patent trolling or patent hoarding is a categorical or pejorative term applied to a person or company that attempts to enforce patent rights against accused infringers far beyond the patent's actual value or ...
—acting only as licensor for their patents and litigating against other semiconductor businesses for alleged infringement of their patents—under Marren's management. Their litigation began shortly before the establishment of OPTi Technologies, with Intel in 2001. Intel settled out of court with OPTi that year for $13.5 million in exchange for the purchase of patents OPTi alleged that Intel had infringed. OPTi then launched a string of successful suits against Amtel,
Broadcom
Broadcom Inc. is an American multinational corporation, multinational designer, developer, manufacturer, and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data cen ...
Silicon Storage Technology
Microchip Technology Incorporated is a publicly listed American semiconductor corporation that manufactures microcontroller, mixed-signal, analog, and Flash-IP integrated circuits.
Its corporate headquarters is located in Chandler, Arizona. ...
,
STMicroelectronics
STMicroelectronics Naamloze vennootschap, NV (commonly referred to as ST or STMicro) is a European multinational corporation, multinational semiconductor contract manufacturing and design company. It is the largest of such companies in Europe. ...
,
Standard Microsystems Corporation
Microchip Technology Incorporated is a publicly listed American semiconductor corporation that manufactures microcontroller, mixed-signal, analog, and Flash-IP integrated circuits.
Its corporate headquarters is located in Chandler, Arizona. ...
, and
VIA Technologies
VIA Technologies, Inc. () is a Taiwanese manufacturer of integrated circuits, mainly motherboard chipsets, CPUs, and memory. It was once the world's largest independent manufacturer of motherboard chipsets. As a fabless semiconductor company, ...
. '' CNET'' characterized this as a "patent infringement litigation rampage".
In early 2006, OPTi filed the first of numerous patent infringement suits against
Nvidia
Nvidia Corporation ( ) is an American multinational corporation and technology company headquartered in Santa Clara, California, and incorporated in Delaware. Founded in 1993 by Jensen Huang (president and CEO), Chris Malachowsky, and Curti ...
; by 2009 the company had won a total of $14.75 million in judgments and settlements against Nvidia, with further litigation by that point still in limbo. Also in 2006, OPTi launched an infringement suit against AMD, though this case stalled until February 2010. The courts ruled in favor of OPTi in May 2010, and AMD agreed to pay $32 or $35 million to OPTi.
In January 2007, OPTi launched a suit in the U.S. District Court for the Eastern District of Texas against
Apple Inc.
Apple Inc. is an American multinational corporation and technology company headquartered in Cupertino, California, in Silicon Valley. It is best known for its consumer electronics, software, and services. Founded in 1976 as Apple Comput ...
for the unauthorized use of OPTi's "predictive snooping of cache memory for master-initiated accesses" patent in Apple's
Macintosh
Mac is a brand of personal computers designed and marketed by Apple Inc., Apple since 1984. The name is short for Macintosh (its official name until 1999), a reference to the McIntosh (apple), McIntosh apple. The current product lineup inclu ...
computers. The courts in Texas ruled in favor of OPTi and ordered Apple to pay $21.7 million—$19 million in instances of patent misuse and $2.7 million in prejudgement interest (potential lost profits for OPTi due to their focus on the lawsuit). Apple announced their intention to
appeal
In law, an appeal is the process in which Legal case, cases are reviewed by a higher authority, where parties request a formal change to an official decision. Appeals function both as a process for error correction as well as a process of cla ...
in December 2009 but dropped this appeal a year later—on the day before a court was to hear it.
OPTi (Technologies) Inc. in 2010 only staffed three people, including Marren. The company again sued
VIA Technologies
VIA Technologies, Inc. () is a Taiwanese manufacturer of integrated circuits, mainly motherboard chipsets, CPUs, and memory. It was once the world's largest independent manufacturer of motherboard chipsets. As a fabless semiconductor company, ...
in 2013 and won on judgement $2.1 million plus $1 million as prejudgement interest, but lost this on VIA's appeal. For the fiscal years ending in 2014 and 2015, the company reported no revenue from licensing and claimed operating losses. In 2018, the company was down to its last employee. OPTi finally shuttered in September 2020.