|Traded as||NASDAQ: LSI
S&P 500 Component
|Industry||Semiconductors, Storage, Networking|
|Headquarters||San Jose, California, USA|
|Key people||Abhi Talwalkar, President and CEO|
|Revenue||US$ 2.51 Billion (2012)|
LSI Corporation is an electronics company based in San Jose, California that designs semiconductors and software that accelerate storage and networking in datacenters, mobile networks and client computing.
LSI Corporation was founded under the name LSI Logic in 1981 in Milpitas, California by Wilfred Corrigan as a semiconductor company after he left as CEO of Fairchild Semiconductor in 1979. The other three founders were Bill O'Meara (marketing and sales), Rob Walker (engineering) and Mitchell "Mick" Bohn (finance). The firm was initially funded with $6 million from noted venture capitalists including Sequoia Capital. A second round of financing for an additional $16M was completed in March 1982. The firm went public as LSI on Nasdaq on Friday May 13, 1983 - netting $153M, the largest tech IPO up to that date.
LSI built its own wafer fabrication, packaging and testing facilities in Milpitas as well as utilizing excess capacity at Toshiba for manufacturing - an early example of the fabless semiconductor manufacturing model. LSI Logic expanded by establishing stand-alone affiliate companies in Japan, Europe and Canada. Nihon LSI Logic based in Tokyo, Japan was financed in April 1984 through a $20 million private offering. LSI Logic Ltd based in Bracknell UK was financed in June 1984 by an additional $20 million private placement and LSI Logic Canada based in Calgary, Alberta went public on the Toronto stock exchange. Each affiliate sought to develop independent manufacturing facilities through alliances, purchases or independent development. In 1985, the firm entered into a joint venture with Kawasaki Steel - Japan's third largest steel manufacturer - to build a $100 million wafer fabrication plant in Tsukuba, Japan.
The firm developed the industry's first line of application specific integrated circuit (ASIC) products which let customers create custom 'gate array' chips by use of proprietary computer aided design tools called 'Logic Design System'. Initial product lines were based on high-speed emitter-coupled logic technology but soon switched over to high-speed complementary metal-oxide-semiconductor (CMOS) which offered much lower cost and lower power requirements to system designers. Over time, LSI Logic increased its product offerings and intellectual property in the areas of standard cells, structured arrays, digital signal processor and microprocessors (MIPS and SPARC) as it moved toward the complete design and development of "system on a chip" products.
As the ASIC market matured, third party design tools became preeminent and with the very high cost of fabrication development, the "foundry" model gained momentum. LSI returned in 2005 to a fabless semiconductor business. During its ASIC years, LSI Logic invested in technologies such as microprocessors, communication devices, and video compression devices.
Internally developed technologies were complemented with acquisitions. In August 1998 it bought Symbios Logic from Hyundai Electronics for $760 million cash. In November 2000, LSI acquired Syntax Systems, and in August 2001 the groups merged to become LSI Logic Storage Systems, and later Engenio Information Technologies.
In March 2001 LSI acquired C-Cube for $878 million in stock. In September 2001 LSI acquired a RAID adapter division from American Megatrends in a $221 million cash transaction. In September 2002 it acquired Mylex from IBM. The Engenio division filed for its own IPO in 2004, but withdrew citing adverse market conditions after the burst of the dot-com bubble.
In 2005, Abhi Talwalkar joined the company as president and CEO, and was also appointed to the board of directors. Talwalkar was an executive at Intel Corporation before joining LSI, and began a program of acquisitions and divestitures. In 2006, LSI Logic sold the Gresham, Oregon design and manufacturing facility to ON Semiconductor. In February 2007 LSI acquired SiliconStor for approximately $55 million in cash. In October 2006 it agreed to an all-stock merger with Agere Systems worth about $4 billion. On April 2, 2007, LSI completed its merger with Agere, and rebranded the firm LSI Corporation.
In June 2007 LSI announced a deal under which Magnum Semiconductor, a spin-off of Cirrus Logic, acquired its consumer products business. These lines included architectures named DoMiNo and Zevio, evolutions of the C-Cube Microsystems technology. On July 22, 2009 agreed to acquire ONStor, Inc. for $25 million, giving ONStor investors about a $105 million loss.
In March 9, 2011 LSI announced its sale of its Engenio external storage systems business to NetApp for $480 million in cash. The sale of the Engenio division, which generated revenues of $705 million in 2010, completed in May. In January 2012, LSI completed the acquisition of SandForce, which produced flash memory contollers (for $370 million reported in October 2011).
Initially listed on the Nasdaq under the ticker symbol LLSI, LSI Logic transferred its listing to the New York Stock Exchange in October 1989 where it traded for over 20 years under the ticker symbol LSI. It transferred its listing back to the Nasdaq (Global Select Market) on December 19, 2012, under the same ticker symbol LSI.
LSI designs semiconductors and software that accelerate storage and networking in data centers, mobile networks and client computing. LSI storage products connects server computers to storage, such as host adapters. LSI also markets networking products.
Other mergers and acquisitions
- September 5, 2007 - LSI announced plans to Acquire Tarari for $85M in cash
- October 24, 2007 - LSI completed its sale of its Mobility Division to Infineon Technologies AG
- March 10, 2008 - LSI announced an agreement to purchase Infineon's hard disk drive business.
- April 28, 2008 - LSI completed its purchase of Infineon's hard disk drive business.
- April 28, 2009 - LSI bought the 3ware RAID adapter business of Applied Micro Circuits Corporation
- "LSI Corporate Milestones".
- George Rostky. "ASICs: the business nobody wanted". EE Times.
- Corey Grice (August 7, 1998). "Short Take: LSI to take third-quarter charge". CNet news. Retrieved October 21, 2013.
- LSI Logic (June 29,1998). "LSI Logic Agrees to Acquire Symbios, Inc. from Hyundai". Press release. Retrieved October 21, 2013.
- Engenio Information Technologies (July 27, 2004). "Prospectus". Form S-1/A. US Securities and Exchange Commission. Retrieved October 21, 2013.
- Tiffany Kary (March 26, 2001). "C-Cube shares rocket on LSI Logic deal". CNet news. Retrieved October 20, 2013.
- Laurie J. Flynn (March 27, 2001). "Technology Briefing: Deals; LSI Logic To Buy C-Cube Microsystems". The New York Times. Retrieved October 20, 2013.
- Natalie Weinstein (September 4, 2001). "LSI completes buy of RAID unit". CNet news. Retrieved October 21, 2013.
- Tiffany Kary (July 2, 2002). "LSI to buy Big Blue unit". CNet news. Retrieved October 20, 2013.
- Engenio Information Technologies (August 16, 2004). "Request to withdraw registration". Letter. US Securities and Exchange Commission. Retrieved October 21, 2013.
- "LSI Logic to Acquire SiliconStor, Inc. to Expand SAS and SATA Storage Solutions Portfolio". Press release (LSI Logic). February 16, 2007. Archived from the original on March 9, 2007. Retrieved October 20, 2013.
- "LSI Logic and Agere Systems to Combine in All-Stock Transaction Valued at Approximately $4.0 Billion". Press release (LSI Logic). December 4, 2006. Archived from the original on April 6, 2010. Retrieved October 20, 2013.
- "LSI Completes Merger with Agere Systems". Press release (LSI Logic). December 4, 2006. Archived from the original on May 27, 2007. Retrieved October 20, 2013.
- "Magnum Semiconductor Agrees to Acquire LSI Consumer Products Business". Press release (LSI Logic). June 27, 2007. Archived from the original on September 28, 2007. Retrieved October 21, 2013.
- Chris Mellor (July 23, 2009). "LSI buys struggling ONStor: ONStor investors curse their own prescience". The Register. Retrieved October 20, 2013.
- "LSI to Sell External Storage Systems Business to NetApp for $480 Million". Press release (LSI Logic). March 9, 2011. Archived from the original on March 14, 2011. Retrieved October 21, 2013.
- "NetApp Completes Purchase of Engenio External Storage Systems Business from LSI Corporation". Press release (NetApp). May 9, 2011. Retrieved October 21, 2013.
- "LSI Completes Acquisition of SandForce, Inc.". News release (LSI). January 4, 2012. Retrieved October 20, 2013.
- "LSI Announces Agreement to Acquire SandForce". News release (LSI). October 26, 2011. Retrieved October 20, 2013.
- "Products". Company web site. Retrieved October 20, 2013.
- LSI buys 3Ware from AMCC (28/04/2009)
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