Semtech is a leading supplier of analog and mixed-signal semiconductor devices (often called integrated circuits or ICs) used in a wide variety of computer, communication and industrial applications. The company is based in Camarillo, California.
Semtech considers itself a people intensive company, not a capital intensive one. Strategic emphasis is placed on design and applications talent needed to develop leading edge, proprietary products. Most of the company's manufacturing is outsourced to third party wafer foundries and sub-contractors. Semtech has sales, design and applications locations throughout the United States, and in the United Kingdom, France, Germany, Switzerland, Taiwan, Korea, Japan, and China.
Semtech attributes its financial and operating strength to four key factors: differentiation, balance, financial strength and multiple sources of growth. The company differentiates itself through its process technology, design, packaging and support. With over 1,000 products and close to 5,000 customers across multiple end markets and geographies, Semtech's business is both diversified and balanced. Its financial strength is reflected in its strong balance sheet and proven ability to generate cash flow. Semtech has positioned itself to benefit from the three trends expected to drive growth in the analog space for years to come: bandwidth demand, miniaturization of electronic devices, and the push for "green" technologies.
Background - Semtech was incorporated in 1960 and went public in 1967. The company was originally focused on serving the military and aerospace markets. With its reputation for quality and reliability, Semtech transitioned to the commercial marketplace in the early 1990's.
Why Analog? - As digital advancements drive demand for electronics, the need for analog and mixed-signal ICs designed to bridge the gap between digital circuits and the real world grows. Digital semiconductor suppliers tend to rely heavily on process technology to remain competitive. Analog and mixed-signal is more reliant on design and applications. The analog industry has several unique characteristics: fragmented end-markets, longer product lifecycles, and less capital requirements than digital.
Strategic Acquisitions - Several acquisitions have strengthened Semtech's product portfolio and access to technology. In 1990, Semtech acquired the semiconductor division of Lambda Electronics, paving the way for its entrance into the commercial semiconductor market. In 1995, the company acquired ECI Semiconductor, an analog semiconductor manufacturer of custom linear and digital arrays and general purpose semiconductor devices. In April 1998, Acapella Limited was acquired for its design expertise in complex communication ICs. In June 2005, Semtech acquired XEMICS SA, a Swiss-based developer of ultra-low power analog, radio frequency and digital integrated circuits used in battery powered applications, remote metering, embedded systems and medical devices. In December 2009, Semtech completed the acquisition of Sierra Monolithics, Inc. (SMI), a supplier of analog and mixed-signal IC solutions for optical communications, wireless and microwave/millimeter wave applications used in high frequency commercial, aerospace and defense communications. In March 2012, Semtech completed the acquisition of Gennum Corporation, a supplier of optical, analog and mixed-signal products and IP used in video broadcast, networking, storage, telecommunications and consumer connectivity applications.