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OPTi Inc. was a
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 "little milpas") is a city in Santa Clara County, California, in Silicon Valley. As of the 2020 census, the city population was 80,273. The city's origins lie in Rancho Milpitas, granted to Californio ranchero José Mar� ...
, that primarily manufactured
chipset In a computer system, a chipset is a set of electronic components in one or more integrated circuits known as a "Data Flow Management System" that manages the data flow between the processor, memory and peripherals. It is usually found on the mo ...
s for
personal computer A personal computer (PC) is a multi-purpose microcomputer whose size, capabilities, and price make it feasible for individual use. Personal computers are intended to be operated directly by an end user, rather than by a computer expert or te ...
s. The company dissolved in 2001 and transferred its assets to the unaffiliated non-practicing entity OPTi Technologies (itself later renamed OPTi Inc.)


History

OPTi Inc. was formed in 1989 in
Milpitas, California Milpitas ( Spanish for "little milpas") is a city in Santa Clara County, California, in Silicon Valley. As of the 2020 census, the city population was 80,273. The city's origins lie in Rancho Milpitas, granted to Californio ranchero José Mar� ...
, by former employees of
Chips and Technologies Chips and Technologies (C&T), founded in Milpitas, California in December 1984 by Gordon A. Campbell and Dado Banatao, was an early fabless semiconductor company. Its first product, announced September 1985, was a four chip EGA chipset that ...
. Cash-strapped on a "shoe-string udget, among the company's first products was a trio of VLSI chipsets for
i386SX The Intel 386, originally released as 80386 and later renamed i386, is a 32-bit microprocessor introduced in 1985. The first versions had 275,000 transistorsi486 The Intel 486, officially named i486 and also known as 80486, is a microprocessor. It is a higher-performance follow-up to the Intel 386. The i486 was introduced in 1989. It represents the fourth generation of binary compatible CPUs following the ...
-equipped AT motherboards. The first was a direct-mapped
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 w ...
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 Patent infringement is the commission of a prohibited act with respect to a patented invention without permission from the patent holder. Permission may typically be granted in the form of a license. The definition of patent infringement may v ...
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 IBM PC compatible computers are similar to the original IBM PC, XT, and AT, all from computer giant IBM, that are able to use the same software and expansion cards. Such computers were referred to as PC clones, IBM clones or IBM PC clones ...
s. It soon found itself competing with
VESA VESA (), formally known as Video Electronics Standards Association, is an American technical standards organization for computer display standards. The organization was incorporated in California in July 1989To retrieve the information, searc ...
's
implementation Implementation is the realization of an application, or execution of a plan, idea, model, design, specification, standard, algorithm, or policy. Industry-specific definitions Computer science In computer science, an implementation is a real ...
and the nascent PCI bus standard by
Intel Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California. It is the world's largest semiconductor chip manufacturer by revenue, and is one of the developers of the x86 ser ...
. It survived into the
Pentium Pentium is a brand used for a series of x86 architecture-compatible microprocessors produced by Intel. The original Pentium processor from which the brand took its name was first released on March 22, 1993. After that, the Pentium II and P ...
era before OPTi submitted to Intel and began manufacturing PCI chipsets. Later in 1992, they introduced a programmable writethroughwriteback 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. In ...
, and AMD. 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 investme ...
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 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 * Google Notebook, a discontinued online application * Notebook interface, a type of programming envir ...
and other
portable computer A portable computer is a computer designed to be easily moved from one place to another and included a display and keyboard together, with a single plug, much like later desktop computers called '' all-in-ones'' (AIO), that integrate the s ...
s in 1994, earning design wins from
Toshiba , commonly known as Toshiba and stylized as TOSHIBA, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. Its diversified products and services include power, industrial and social infrastructure systems, ...
,
NEC is a Japanese multinational information technology and electronics corporation, headquartered in Minato, Tokyo. The company was known as the Nippon Electric Company, Limited, before rebranding in 1983 as NEC. It provides IT and network soluti ...
, and
Hewlett-Packard The Hewlett-Packard Company, commonly shortened to Hewlett-Packard ( ) or HP, was an American multinational information technology company headquartered in Palo Alto, California. HP developed and provided a wide variety of hardware components ...
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 Int ...
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 and several other fabless companies including SIS to raise a 350250 nm semiconductor plant within
Hsinchu Hsinchu (, Chinese: 新竹, Pinyin: ''Xīnzhú'', Wade–Giles: ''Hsin¹-chu²'') is a city located in northwestern Taiwan. It is the most populous city in Taiwan Province not among the special municipalities, with estimated 450,655 inhabi ...
, 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 to manipulate and alter memory to accelerate the creation of images in a frame buffer intended for output to a display device. GPUs are used in embedded systems, m ...
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 ...
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 Cirrus Logic Inc. is an American fabless semiconductor supplier that specializes in analog, mixed-signal, and audio DSP integrated circuits (ICs). Since 1998, the company's headquarters have been in Austin, Texas. The company's audio process ...
, a subsidiary of
Cirrus Logic Cirrus Logic Inc. is an American fabless semiconductor supplier that specializes in analog, mixed-signal, and audio DSP integrated circuits (ICs). Since 1998, the company's headquarters have been in Austin, Texas. The company's audio process ...
, 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 for "tall stick") is a charter city in the northwestern corner of Santa Clara County, California, United States, in the San Francisco Bay Area, named after a coastal redwood tree known as El Palo Alto. The city was es ...
, 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 (MCU for ''microcontroller unit'', often also MC, UC, or μC) is a small computer on a single VLSI integrated circuit (IC) chip. A microcontroller contains one or more CPUs ( processor cores) along with memory and programmabl ...
s for notebooks, chiefly LCDs and USB 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 an ...
(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—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 designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wirel ...
,
Renesas is a Japanese semiconductor manufacturer headquartered in Tokyo, Japan, initially incorporated in 2002 as Renesas Technology, the consolidated entity of the semiconductor units of Hitachi and Mitsubishi excluding their dynamic random-access memo ...
, Silicon Storage Technology,
STMicroelectronics STMicroelectronics N.V. commonly referred as ST or STMicro is a Dutch multinational corporation and technology company of French-Italian origin headquartered in Plan-les-Ouates near Geneva, Switzerland and listed on the French stock market. ST ...
,
Standard Microsystems Corporation Microchip Technology Inc. is a publicly-listed American corporation that manufactures microcontroller, mixed-signal, analog and Flash-IP integrated circuits. Its products include microcontrollers ( PIC, dsPIC, AVR and SAM), Serial EEPROM d ...
, and
VIA Technologies VIA Technologies Inc. (), is a Taiwanese manufacturer of integrated circuits, mainly motherboard chipsets, CPUs, and memory. It was the world's largest independent manufacturer of motherboard chipsets. As a fabless semiconductor company, VIA ...
. ''
CNET ''CNET'' (short for "Computer Network") is an American media website that publishes reviews, news, articles, blogs, podcasts, and videos on technology and consumer electronics globally. ''CNET'' originally produced content for radio and televi ...
'' characterized this as a "patent infringement litigation rampage". In early 2006, OPTi filed the first of numerous patent infringement suits against
Nvidia Nvidia CorporationOfficially written as NVIDIA and stylized in its logo as VIDIA with the lowercase "n" the same height as the uppercase "VIDIA"; formerly stylized as VIDIA with a large italicized lowercase "n" on products from the mid 1990s to ...
; 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. for the unauthorized use of OPTi's "predictive snooping of cache memory for master-initiated accesses" patent in Apple's
Macintosh The Mac (known as Macintosh until 1999) is a family of personal computers designed and marketed by Apple Inc., Apple Inc. Macs are known for their ease of use and minimalist designs, and are popular among students, creative professionals, and ...
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 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 clarifying and ...
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. For the fiscal years ending in 2014 and 2015, the company reported no revenue from licensing and claimed operating losses. The company had again sued
VIA Technologies VIA Technologies Inc. (), is a Taiwanese manufacturer of integrated circuits, mainly motherboard chipsets, CPUs, and memory. It was the world's largest independent manufacturer of motherboard chipsets. As a fabless semiconductor company, VIA ...
in 2013 and won on judgement $2.1 million plus $1 million as prejudgement interest. OPTi lost this on VIA's appeal, however. In 2018, the company was down to its last employee. OPTi finally shuttered in September 2020.


References


External links

* {{webarchive, url=https://web.archive.org/web/19961113034851/opti.com, title=Official website, date=November 13, 1996
OPTi Inc. company and products overview
at DOS Days 1989 establishments in California 2001 disestablishments in California 1993 initial public offerings American companies established in 1989 American companies disestablished in 2001 American companies established in 2002 American companies disestablished in 2020 Chipsets Defunct computer companies based in California Defunct computer companies of the United States Defunct semiconductor companies of the United States Electronics companies established in 1989 Electronics companies disestablished in 2001 Fabless semiconductor companies Manufacturing companies based in San Jose, California Patent monetization companies of the United States Semiconductor companies of the United States Technology companies established in 1989 Technology companies disestablished in 2001 Technology companies established in 2002 Technology companies disestablished in 2020