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Chips and Technologies

Chips and Technologies, Inc. (C&T) was an American fabless company that designed integrated circuits for personal computers, notably pioneering affordable chipsets for and logic in the and . Founded in December 1984 in , by Gordon A. Campbell and , it became the first fabless firm, outsourcing manufacturing to foundries while focusing on design and innovation to reduce costs for PC makers. The company's debut product, announced in September 1985, was a four-chip (EGA) chipset that replicated the functionality of 19 proprietary chips, enabling third-party manufacturers to produce compatible graphics cards at lower prices and accelerating the adoption of EGA standards in . This was followed by system logic chipsets for PC/AT compatibles, VGA graphics solutions, and later innovations like the Single Chip AT Controller () in 1990, which integrated multiple functions into one chip to simplify designs and cut costs. By the early 1990s, C&T expanded into with graphics accelerators featuring HiQColor technology and integrated memory support for flat-panel displays, establishing leadership in notebook PC visuals. C&T's fabless model and focus on high-volume, low-cost chips significantly influenced the PC industry, enabling clone makers to compete with IBM and fostering the growth of compatible hardware ecosystems. The company went public in 1986 and achieved peak revenues of over $200 million by 1989, though it faced challenges from market shifts toward integrated processors in the mid-1990s. In July 1997, Intel announced its acquisition of C&T for $420 million to bolster mobile graphics capabilities, completing the deal in January 1998 and integrating C&T's technologies into Intel's Graphics Components Division.

History

Founding and early years

Chips and Technologies was founded in December 1984 in , by Gordon A. Campbell, a former executive who had served as the company's first corporate marketing manager and later led its largest division, and , an engineer with prior experience at , , , and SEEQ Technology. The venture began with $1 million in seed funding from a real estate investor, reflecting the modest resources available to early startups amid a burgeoning but capital-intensive . The company pioneered the fabless semiconductor business model, concentrating on and fabrication to third-party foundries such as LSI Logic and —early exemplars of what would later evolve into dedicated services like those from . This approach allowed Chips and Technologies to avoid the enormous costs of building its own facilities, enabling faster innovation in a where integrated device manufacturers (IDMs) like dominated production. In the mid-1980s personal computer landscape, dominated by IBM's proprietary hardware standards, the firm grappled with challenges including limited initial capital, the need to reverse-engineer IBM's for compatibility, and intense rivalry from incumbents seeking to protect their ecosystems against emerging PC clones. Its inaugural product, the Enhanced Graphics CHIPSet (comprising the 82C431, 82C432, 82C433, and 82C434), was announced in September 1985 and consolidated the functions of 19 discrete components, dramatically reducing costs and complexity for (EGA) implementations in compatible PCs. This breakthrough facilitated the proliferation of affordable graphics solutions for PC clones, addressing a key bottleneck in the nascent clone market. The company went public in 1986 via an on the , which provided crucial capital for expansion; revenues surged from approximately $1 million in its first full year to $217.6 million by 1989, underscoring the rapid adoption of its chipsets amid the PC boom.

Product innovation and market growth

Following its early focus on basic PC logic chips, Chips and Technologies expanded into technologies in the late , scaling production of its 82C451 VGA controller—initially introduced in 1987—to meet growing demand for compatible video s by 1989, enabling resolutions up to 800x600 in 16 colors. This shift supported the transition to VGA standards in personal computers, with the chip providing full VGA compatibility at hardware, register, and levels, reducing the need for multi-chip designs in cards. By 1992, the company advanced to with the 82C481 , a single-chip that boosted performance for Windows, , and CAD applications, supporting higher resolutions and color depths on ISA, EISA, and buses. These innovations diversified the product line beyond logic chips, capturing a significant portion of the emerging market. In parallel, Chips and Technologies entered the motherboard chipset market in 1985 with the AT CHIPSet, followed by the 82C100 series in 1987 and related offerings like the CS8230, designed to support 80386 processors at speeds up to 25 MHz while reducing overall component counts in , EISA, and systems. These chipsets integrated CPU control logic, controllers for up to 8 MB of with and shadow RAM support, and bus interfaces, making them attractive for cost-sensitive PC builders. The company further developed x86-compatible processors, including the Super386 (announced in 1991 and shipping in 1992), which offered approximately 10% better performance than 80386 at equivalent clock speeds as a clean-room , positioning it as a lower-cost alternative for upgrades and embedded systems. Strategic partnerships with major PC manufacturers such as and integrated these technologies into laptops and desktops, particularly for graphics and chipset solutions, enhancing system efficiency and driving adoption in the OEM market. Market growth accelerated through the early , with net sales peaking at $293.4 million in 1990, a 35% increase from $217.6 million in 1989, fueled by demand for these diversified products. By the mid-, the company achieved approximately 20% in PC chipsets, leveraging its fabless model for scalable production. However, intense competition from , which dominated with superior resources, and legal challenges—including a 1992 lawsuit by over processor designs, to which C&T countersued alleging infringement in Intel's 386SL—strained growth, leading to revenue declines to $141.1 million by 1992 amid price erosion and litigation costs. Despite these hurdles, the expansions solidified Chips and Technologies' role in affordable PC components until the late .

Acquisition by Intel

On July 27, 1997, Corporation announced its agreement to acquire Chips and Technologies, Inc., in a stock-for-stock transaction valued at approximately $420 million, issuing about 13.4 million shares of common stock to C&T shareholders. The deal faced regulatory review, leading to extend its deadline multiple times, ultimately completing the merger on February 2, 1998, at which point C&T became a wholly owned of . The acquisition was driven by Intel's desire to enhance its capabilities in graphics and visual computing, particularly for mobile personal computers, where C&T had developed expertise in low-cost, integrated graphics and chipset solutions. At the time, Intel faced intensifying competition in the x86 processor market from rivals like and , who were offering lower-priced alternatives to Intel's line; bolstering its graphics and motherboard portfolio through C&T allowed Intel to strengthen its overall platform ecosystem and differentiate in multimedia applications. C&T's fabless design approach, which emphasized efficient, cost-effective silicon integration without owning fabrication facilities, complemented Intel's (IDM) model by providing scalable technologies for emerging visual demands. Following the merger, C&T's engineering teams and were integrated into Intel's labs, with a focus on ; the operated briefly before full absorption, contributing to Intel's expansion into discrete . Key C&T technologies were repurposed within Intel's product lines, notably influencing the of the 740 (i740) , codenamed , which incorporated C&T's 2D capabilities with a 3D pipeline co-developed with Real3D and launched in early 1998 as Intel's first AGP-based supporting advanced 3D and features. Standalone C&T products, such as its earlier controllers and chipsets, were largely discontinued in favor of rebranded or evolved offerings, streamlining the portfolio under Intel's branding and manufacturing infrastructure. In the longer term, the acquisition accelerated Intel's push into graphics acceleration, though the i740 faced market challenges from established competitors like and ATI; nonetheless, C&T's innovations in low-power, integrated designs informed Intel's subsequent embedded graphics integrations in chipsets throughout the late 1990s and early . The deal also highlighted Intel's strategic shift toward acquiring specialized to address gaps in its , a tactic that influenced broader industry trends in mergers for technology consolidation.

Products

x86-compatible processors

Chips and Technologies entered the x86-compatible microprocessor market with its Super386 family, developed as a reverse-engineered of Intel's 80386 to provide a cost-effective alternative for PC systems. Announced in September 1991 and entering volume production in early 1992, the Super386 processors were designed using a clean-room approach to ensure software compatibility while avoiding Intel's copyrights, though patent issues persisted. These chips targeted budget-oriented desktops and workstations, offering pin-compatibility with Intel's 386 sockets to facilitate drop-in replacements in existing motherboards. The Super386 models, such as the 38600DX and 38600SX, operated at clock speeds ranging from 20 MHz to 40 MHz and were fabricated on a 1-micron process, emphasizing lower power consumption compared to Intel's equivalents. They lacked an integrated (FPU), relying on external coprocessors like the 80387, but included enhancements like an improved for modest gains. At equivalent clock speeds, these processors delivered approximately 10% higher than Intel's 80386 or AMD's Am386 in standard benchmarks, attributed to optimized decoding and prefetch mechanisms. was competitive, with the DX-25 variant listed at $152 per unit in 1,000-piece quantities in early 1992, roughly 30-50% less than Intel's offerings, making them attractive for value-driven OEMs. An advanced variant, the Super386 38605DX, introduced a 512-byte on-chip instruction to boost efficiency in code execution, potentially increasing by up to 50% over non-cached 386 designs at the same . This was instruction-only, with mechanisms to handle by invalidating entries and flushing the , reducing coherency overhead. The 38605DX also featured proprietary extensions like SuperState V, a similar to Intel's SMM for and interrupt handling, accessible via a unique SCALL instruction ( 0Fh 18h) for CPU identification and control. Despite these innovations, the extended pinout required specialized motherboards, limiting widespread adoption. The chips supported standard x86 software, including , , and , with no major compatibility issues reported beyond the absence of support. In the market, Super386 processors found niche use in entry-level PCs from vendors seeking Intel alternatives amid rising 80486 adoption, but their impact was curtailed by poor timing—the 486 era was underway—and legal pressures from . Production likely ceased by 1993 following a settled out of court, after which Chips and Technologies shifted focus to chipsets and . Overall remained low, with estimates suggesting less than 5% of 386-class systems by 1993, overshadowed by 's dominance and competitors like and . Limitations included no support for later extensions like MMX and higher susceptibility to 's ecosystem lock-in, contributing to their obsolescence post-acquisition by in 1997.

Motherboard chipsets

Chips and Technologies (C&T) pioneered highly integrated chipsets that facilitated the design of cost-effective PC-compatible systems by consolidating multiple discrete components into fewer , thereby reducing manufacturing complexity and board space. Their chipsets emphasized for x86 architectures, handling critical functions such as bus management, memory control, and peripheral interfaces while supporting evolving CPU generations. This approach allowed original equipment manufacturers (OEMs) to produce affordable clones of PCs, accelerating the proliferation of personal computing in the late and early . The CS8230 AT/386 chipset, introduced in 1989, marked C&T's entry into advanced chipset design for 386-based systems, a seven-chip solution supporting Intel 80386 processors at speeds up to 25 MHz. It incorporated southbridge-like functions, including an 8237-compatible controller for operations, 8254-compatible timers for system timing, handling via 8259 compatibility, and bus arbitration logic. This integration significantly reduced motherboard component counts from over 100 ICs in traditional designs to approximately 40 ICs plus memory, enabling more compact and economical 386/AT systems with up to 16 MB of in page-interleaved configurations and zero-wait-state operations. Building on this foundation, the CS4031 two-chip set (F84031 CPU/DRAM/ISA controller and F84035 peripheral controller), introduced in 1993, targeted 486 processors and expanded peripheral support to meet growing demands for storage and bus performance. It supported 486SX, 486DX, and compatible variants at up to 33 MHz, integrating dual 8237 controllers, a single 8254 timer, and enhanced I/O for floppy and hard disk interfaces—serving as precursors to standards. Later variants incorporated compatibility with emerging bus architectures, alongside VESA Local Bus (VL-Bus) for high-speed peripherals, while maintaining low pin counts for cost-sensitive designs. The series further minimized external logic to just 8 devices for systems with up to 64 MB and one VL slot, promoting burst-mode memory access with patented page-interleaving for improved performance. Key innovations across C&T's chipset lineup included support for flat panel displays in laptop-oriented variants, enabling direct LCD interfacing without additional converters, and comprehensive capabilities such as standby modes drawing under 50 µA and CPU speed throttling to extend battery life in portable systems. These chipsets had a profound market impact by democratizing PC design; C&T licensed their technology to over 100 manufacturers, including major OEMs like , , and , which enabled the of low-cost PC clones and fueled the explosive growth of the personal computing industry during the early 1990s laptop boom. By prioritizing and high-volume licensing, C&T's solutions lowered entry barriers for system builders, contributing to the shift from proprietary to standardized x86 ecosystems.

Graphics controllers

Chips and Technologies (C&T) played a pivotal role in the development of affordable graphics controllers for PC compatibles, beginning with the reverse-engineering of 's proprietary display standards in the mid-1980s. Their early focus on integrating multiple functions into fewer enabled clone manufacturers to produce cost-effective add-in boards that complied with EGA and VGA specifications, fostering widespread adoption in the burgeoning market. By providing and enhanced resolutions, C&T's controllers supported the transition from text modes to color , significantly influencing the visual capabilities of early PCs. The company's inaugural graphics product was the CS8240 EGA chipset, released in September 1985 as a four-chip set comprising the 82C431, 82C432, 82C433, and 82C434. This design consolidated the functions of 19 proprietary chips, delivering 640×350 resolution with 16 colors from a 64-color palette while maintaining with CGA modes at 320×200 with 4 colors. It supported up to 256 of video memory and operated over an 8-bit bus, allowing third-party vendors to create EGA-compatible cards at roughly half the cost of IBM's original. In 1987, C&T advanced to VGA support with the 82C451 and 82C452 controllers, marking a shift to single-chip solutions that integrated key display functions including a . The 82C451 provided full VGA compatibility at the hardware, register, and levels, supporting 640×480 resolution with 256 colors and extending to 800×600 in 16 colors, with an integrated 256 KB interface for efficient memory handling. The 82C452 variant enhanced this with support for 1 MB , enabling higher resolutions like 1024×768 in modes. These chips featured dual-bus architecture for 8-bit and 16-bit compatibility, accelerating text and operations while reducing power consumption for portable systems. By the early 1990s, C&T's graphics lineup evolved to SVGA capabilities with chips like the 82C481, introduced in as a true-color graphics accelerator. This single-chip controller supported resolutions up to 1024×768 with 256 colors and 800×600 in 16.7 million colors, incorporating for 2D operations tailored to Windows and environments. It included a BitBLT engine for fast block transfers and a hardware cursor for smooth pointer rendering, boosting performance in CAD and applications by up to tenfold compared to standard VGA. The 9110 series, paired with the 82C481 in some designs, extended clock speeds and memory bandwidth for enhanced SVGA compliance. These features positioned C&T controllers as essential for mid-range PCs, integrating seamlessly with chipsets for optimized system I/O. The 655xx series, launched around 1994 and refined through the mid-1990s, represented C&T's push into integrated mobile graphics with chips like the 65545 and 65548. These supported SVGA modes up to ×768×256 colors, with for EGA, VGA, and legacy standards, while incorporating early primitives that foreshadowed capabilities, such as line drawing and fill . Featuring on-chip RAMDACs, hardware cursors, and BitBLT engines, the series optimized for flat-panel LCDs and CRTs in laptops, supporting up to 2 MB of video RAM and clock rates to 80 MHz. Widely adopted in OEM systems from , , and , it emphasized low power and compact integration. C&T's graphics controllers dominated the market for PC clone video solutions in the late , capturing a significant share—estimated at over 70% by 1988—through licensing to add-in board makers like Paradise Systems, whose early VGA cards incorporated C&T for broad compatibility and performance. This leadership accelerated the standardization of display technologies, enabling the proliferation of color in business and PCs before the rise of dedicated accelerators.

Peripheral and other chips

Chips and Technologies developed a range of peripheral controllers to support operations in PC-compatible systems, integrating multiple functions into single chips to reduce board space and costs. These included universal peripheral controllers that handled , , floppy, and interfaces, enabling efficient connectivity for early computers. The 82C721 Universal Peripheral Controller, introduced in the early as an enhanced version of prior models, provided a comprehensive single-chip I/O solution for PC/AT and PC/XT environments. It featured two 16450-compatible UARTs for (supporting data rates from 50 to 115.2 Kbaud), a bidirectional compatible with PC-XT/AT and PS/2 standards, a floppy disk controller (uPD72065B and IBM-BIOS compatible) supporting up to four drives at data rates of 250 kb/s, 300 kb/s, and 500 kb/s, and an integrated digital data separator requiring no external filters. Additionally, it included a complete IDE interface for embedded hard disk drives, supporting 8/16-bit programmed I/O in AT mode and 8-bit programmed I/O or in XT mode, with on-chip for hardware- and software-controlled low-power states. Packaged in a 100-pin PQFP using low-power technology, the 82C721 was pin- and software-compatible with the earlier 82C711, facilitating upgrades without modifications. For storage peripherals, Chips and Technologies offered hard disk controllers like the 82C785 Single Chip PC-AT Hard Disk Controller, which supported PIO and modes up to 8 MBytes/s transfer rates and disk data rates up to 24 Mbits/s via an AT bus interface with 24 mA drivers. It incorporated features for energy-efficient operation and was available in 100-pin QFP or 84-pin PLCC packages. The company also produced controllers, such as the 82C5086 Synchronous Protocol Controller, a single-chip solution for adding interfaces to notebook and motherboard designs, supporting both single-ended and 8-bit buses for host adapters and embedded applications. Super I/O chips from Chips and Technologies, such as the 82C710 Multifunction Controller, integrated essential peripherals for PC XT- and AT-compatible motherboards, including a 16450-compatible , a bi-directional (16 mA drive), a PS/2 port, an interface, and a floppy subsystem supporting up to 1 Mbits/s data rates. Housed in a 100-pin QFP package, it emphasized software configurability and complete to optimize system efficiency. Later variants like the 82C601 extended this with two UARTs, an enhanced , support, and EISA readiness in 80-pin PFP or 84-pin PLCC packages. These chips handled , , and other input devices, streamlining peripheral integration. In niche applications, particularly for portable systems, Chips and Technologies provided embedded controllers and ICs, such as the 82C636 Power Control Unit within the CS8223/CS8283 LeAPset for laptops. This supported and stand-by modes, automatic power-off, and modular power-down for peripherals, addressing the growing demand for battery-efficient designs in . Overall, these peripheral chips complemented core PC components by filling I/O and storage gaps, often incorporated into reference designs for cost-effective system builds.

Legacy and impact

Innovations in fabless manufacturing

Chips and Technologies (C&T) pioneered the fabless semiconductor model upon its founding in December 1984 by Gordon A. Campbell and Dado Banatao, often credited as the first company to design and market integrated circuits without owning fabrication facilities. This approach allowed C&T to focus resources on innovation rather than capital-intensive manufacturing, outsourcing production to external foundries such as Toshiba and Hitachi starting in 1985. By leveraging these partnerships, C&T avoided the substantial costs associated with building a semiconductor fabrication plant, which exceeded $100 million for a single fab line in the mid-1980s. C&T's design operations centered on in-house very-large-scale integration (VLSI) teams that utilized early (CAD) tools to develop complex chip architectures, often employing gate-array technologies for . To ensure compatibility with emerging standards, the company licensed (IP) from established players, enabling efficient integration of x86-compatible features without reinventing core elements. This streamlined contributed to economic advantages, including higher gross margins for fabless firms compared to integrated device manufacturers (IDMs), as the model eliminated overhead from owned fabs and allowed greater allocation to . Additionally, the fabless structure accelerated time-to-market to 6-12 months, significantly faster than the multi-year cycles typical for IDMs managing both design and production. The success of C&T's model spurred a broader industry shift toward horizontal specialization, inspiring subsequent fabless ventures like and , which adopted similar strategies to prioritize design innovation. By the 1990s, the fabless approach had gained substantial traction, with such accounting for an increasing share of production—reaching approximately 20% of the market by the decade's end—as foundries like scaled to meet demand. C&T navigated early challenges in reliability by securing multi-foundry agreements, diversifying production across partners like and to mitigate risks from capacity shortages or geopolitical disruptions. This risk management practice became a cornerstone of the fabless ecosystem, enabling sustained growth amid the volatile landscape.

Influence on personal computing industry

Chips and Technologies (C&T) played a pivotal role in the PC cloning boom by developing low-cost, highly integrated that dramatically reduced manufacturing complexity and expenses for PC-compatible systems. In the mid-1980s, C&T's early products, such as the NEAT chipset for 286-based systems introduced in , consolidated the functions of multiple discrete chips into fewer components, enabling clone manufacturers to produce affordable with fewer than 20 chips instead of the dozens required in original designs. This innovation lowered entry barriers for third-party vendors, fueling explosive market growth; annual worldwide PC shipments rose from approximately 3.7 million units in to over 50 million by 1995, transforming personal computing from a into a mass-consumer industry. C&T accelerated the adoption of open graphics standards, particularly VGA and SVGA, through its pioneering compatible controllers that democratized high-resolution displays beyond 's proprietary hardware. As the first company outside to reverse-engineer and produce an EGA-compatible in 1986—comprising four chips that replicated 19 components—C&T laid the groundwork for affordable solutions, later extending this to VGA adapters like the 82C480 series. These efforts pushed widespread VGA/SVGA implementation across clones, influencing Windows' architecture by establishing standards for 640x480 resolution and 256-color support, which became essential for graphical user interfaces in the late 1980s and early 1990s. By capturing up to 80% of the AT-compatible logic , C&T ensured that advanced visuals were accessible without licensing fees, broadening PC utility for productivity and entertainment applications. The company's competition with in the and sectors exerted downward pressure on component pricing, benefiting consumers and spurring industry innovation. Operating as an early fabless firm on a limited budget, C&T's cost-effective alternatives challenged 's dominance, contributing to broader price erosion in PC hardware; for instance, Intel reduced 486 processor prices by up to 50% in the early 1990s amid intensifying rivalry from clone-enabling technologies. This dynamic not only made high-performance systems more attainable but also forced Intel to accelerate its own integrations, as seen in legal settlements over patents like the '338 that C&T contested. Following 's 1997 acquisition of C&T for $420 million, the company's graphics expertise influenced subsequent integrated designs, notably in the Intel 810 family launched in 1999, which incorporated onboard GPU capabilities derived from C&T's mobile graphics heritage. This legacy extended to , where C&T's emphasis on compact, power-efficient chips prefigured modern system-on-chip () architectures, enabling slimmer laptops and embedded systems. Overall, C&T's contributions supported the proliferation of affordable PCs in education and business settings, where low-cost clones equipped with standardized graphics empowered widespread adoption for word processing, spreadsheets, and early , laying foundations for today's ecosystem.

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