Bipolar Integrated Technology

Bipolar Integrated Technology, Inc., commonly known as BIT and later as Bit, Inc., was a privately held semiconductor company headquartered in Beaverton, Oregon. Founded in 1983 by engineers with backgrounds at Floating Point Systems, Intel, and Tektronix, the company was established during a period when specialized high-performance processors and semiconductor technologies were being developed for scientific computing, minicomputers, and emerging workstation architectures. BIT’s products were implemented using emitter-coupled logic, or ECL, a high-speed bipolar logic technology. Its initial product was a floating-point coprocessor chipset intended to accelerate numerical computation. This positioning connected the company to the scientific-computing ecosystem and to customers building systems that required arithmetic performance beyond what general-purpose processors of the period could provide. Within three years of its formation, BIT had raised $36 million in startup capital and occupied a 46,000-square-foot manufacturing facility at the Oregon Graduate Center. The company later expanded from coprocessor components into complete high-performance microprocessors. Its B5000 SPARC ECL processor was associated with the SPARC instruction-set architecture and was used by Floating Point Systems, but it did not reach production in a Sun Microsystems product. BIT also developed the R6000, an ECL implementation of the MIPS architecture. The R6000 did enter production in a MIPS minicomputer, but its initial manufacturing yields were very poor. The resulting parts shortages affected MIPS Computer Systems, which attributed its first quarterly loss, reported in October 1990, in part to BIT’s supply problems. In June 1991, BIT and MIPS changed their commercial arrangement. An earlier exclusivity agreement was dissolved, allowing BIT to market the R6000 on the open market. Under president Fred Hanson, BIT recorded its first profitable year in 1991 and reached peak revenue of approximately $20 million. The improvement was not sustained: revenue fell to about $10 million in 1992 after BIT lost four of its largest customers, including MIPS, Floating Point Systems, and Control Data. BIT subsequently moved into communications hardware, including Asynchronous Transfer Mode equipment and Ethernet switches. This represented a shift from its earlier emphasis on high-speed processor technology toward networking products for telecommunications and data communications. The communications business ultimately attracted PMC-Sierra, which acquired BIT in September 1996. Following that transaction, Bipolar Integrated Technology ceased to operate as an independent company. Its history reflects both the opportunities and risks of specialized semiconductor manufacturing: advanced processor designs could address demanding technical markets, but low production yields, dependence on a small number of customers, and rapid changes in computing architectures created substantial commercial pressure.

Bipolar Integrated Technology was founded in 1983 in Oregon by engineers formerly associated with Floating Point Systems, Intel, and Tektronix. The company was created to develop and manufacture high-speed semiconductor products using emitter-coupled logic, a bipolar technology known for fast switching performance. Its origins placed it close to the scientific-computing and advanced-systems communities that were active in Oregon during the early personal-computer, workstation, and minicomputer era. BIT’s first reported product was a floating-point coprocessor chipset. Such a product was intended to supplement a system’s main processor by accelerating numerical calculations, making it relevant to scientific, engineering, and other computation-intensive applications. The company attracted substantial early financing, raising $36 million within three years of its foundation. It established operations in a 46,000-square-foot manufacturing facility at the Oregon Graduate Center, giving it an in-house manufacturing presence rather than operating solely as a design house. The company then developed ECL microprocessors associated with major processor architectures. The B5000 was an ECL implementation of SPARC. Although the processor did not enter production in a Sun Microsystems product, it was used by Floating Point Systems. BIT also produced the R6000, an ECL version of the MIPS architecture. The R6000 achieved production use in a MIPS minicomputer, but the early manufacturing process produced very poor yields. The resulting shortage of usable parts created problems for MIPS Computer Systems, which linked BIT’s supply difficulties to its first quarterly loss in October 1990. The commercial relationship between the two companies changed in June 1991, when BIT and MIPS agreed to end their previous exclusivity arrangement. BIT was then permitted to market the R6000 directly on the open market. The change gave BIT greater freedom to pursue customers, although it also exposed the product to broader competition and market scrutiny. During the same period, Fred Hanson served as president. BIT reported its first profitable year in 1991 and reached peak revenue of approximately $20 million. The improvement was short-lived. Revenue declined to approximately $10 million in 1992 after the company lost four of its largest customers. The named lost customers included MIPS, Floating Point Systems, and Control Data, illustrating the company’s dependence on a limited group of major systems companies. Customer concentration and the difficulty of producing specialized high-speed processors constrained BIT’s ability to maintain its earlier financial performance. BIT eventually shifted part of its business toward telecommunications and networking. Its later products included Asynchronous Transfer Mode devices and Ethernet switches. This move broadened the company’s addressable market beyond processor components and reflected the growing importance of high-speed digital communications. The transition did not result in BIT remaining independent. PMC-Sierra acquired the company in September 1996 for its later communications products. After the acquisition, BIT no longer operated as a standalone semiconductor brand. Its history combines advanced ECL engineering, relationships with prominent computer-system companies, manufacturing-yield challenges, customer concentration, and a final strategic move into communications hardware.

• 1996

  Acquired by PMC-Sierra

  [1]Bipolar Integrated Technologyen.wikipedia.org

  PMC-Sierra acquired BIT in September, bringing its ATM and Ethernet-switch activities into the acquiring company.

• 1992

  Revenue declines after major customer losses

  [1]Bipolar Integrated Technologyen.wikipedia.org

  Revenue fell to approximately $10 million after BIT lost four of its largest customers, including MIPS, Floating Point Systems, and Control Data.

• 1991

  R6000 exclusivity arrangement dissolved

  [1]Bipolar Integrated Technologyen.wikipedia.org

  BIT and MIPS signed an agreement allowing BIT to market the R6000 on the open market.

• 1991

  First profitable year

  [1]Bipolar Integrated Technologyen.wikipedia.org

  Under president Fred Hanson, BIT became profitable for the first time and reached peak revenue of approximately $20 million.

• 1990

  R6000 supply problems affect MIPS

  [1]Bipolar Integrated Technologyen.wikipedia.org

  Poor initial yields for BIT’s R6000 MIPS ECL processor contributed to parts shortages, and MIPS attributed its first quarterly loss in October to BIT.

• 1986

  Major early financing and manufacturing expansion

  [1]Bipolar Integrated Technologyen.wikipedia.org

  Within three years of its foundation, BIT had raised $36 million in startup capital and occupied a 46,000-square-foot manufacturing facility at the Oregon Graduate Center.

• 1983

  Company founded in Oregon

  [1]Bipolar Integrated Technologyen.wikipedia.org

  Bipolar Integrated Technology was founded by former engineers from Floating Point Systems, Intel, and Tektronix.

A specialist high-performance semiconductor supplier focused initially on ECL-based floating-point and microprocessor technology, later repositioning toward telecommunications and networking hardware.

• Coprocessor chipset

  Floating-point coprocessor chipset

  BIT’s initial product was a floating-point coprocessor chipset designed to accelerate numerical operations. It represented the company’s early focus on high-performance computation and served as an entry point into the scientific-computing and advanced-systems markets.

• Microprocessor

  B5000 SPARC ECL microprocessor

  The B5000 was an ECL microprocessor associated with the SPARC architecture. It was used by Floating Point Systems, but it did not reach production in a Sun Microsystems product. The device illustrates BIT’s attempt to apply high-speed bipolar implementation to established processor architectures.

• Microprocessor

  R6000 MIPS ECL microprocessor

  The R6000 was BIT’s ECL implementation of the MIPS architecture. It reached production in a MIPS minicomputer, but its initial manufacturing yields were very poor, resulting in shortages for MIPS Computer Systems. After a 1991 agreement, BIT was allowed to market the processor on the open market.

• Telecommunications equipment

  Asynchronous Transfer Mode devices

  In its later years, BIT entered the telecommunications market with equipment based on Asynchronous Transfer Mode technology. These products marked a shift from the company’s earlier processor-centered portfolio toward communications infrastructure.

• Networking equipment

  Ethernet switches

  BIT also developed Ethernet switches as part of its move into communications hardware. The networking products were among the later activities associated with the company and were a principal reason for PMC-Sierra’s 1996 acquisition.

• 1996

  Acquisition by PMC-SierraM&A

  Background

  After revenue declined and the company broadened its portfolio into ATM devices and Ethernet switches, BIT became an acquisition target in the communications-semiconductor sector.

  Action taken

  PMC-Sierra acquired Bipolar Integrated Technology in September 1996.

  Aftermath

  BIT ceased to operate as an independent company, while its later communications products became part of PMC-Sierra’s business.

  Source

• 1991

  Open-market marketing of the R6000Strategy

  Background

  BIT and MIPS had previously operated under an exclusivity arrangement for the R6000. Manufacturing problems had contributed to shortages and commercial tension surrounding the processor.

  Action taken

  The companies signed an agreement in June 1991 that dissolved the previous exclusivity arrangement and permitted BIT to market the R6000 on the open market.

  Aftermath

  The agreement gave BIT broader commercial access to potential customers, although the company later faced declining revenue after losing several major accounts.

  Source

• 1996

  PMC-Sierra acquires Bipolar Integrated Technology[1]Bipolar Integrated Technologyen.wikipedia.org

  M&A

  PMC-Sierra acquired BIT in September 1996, particularly obtaining a business that had expanded into ATM devices and Ethernet switches.

• 1991

  Bipolar Integrated Technology reaches profitability under Fred Hanson[1]Bipolar Integrated Technologyen.wikipedia.org

  Other

  The company recorded its first profitable year and reached peak revenue of approximately $20 million.

• 1991

  BIT and MIPS open R6000 marketing beyond exclusive arrangement[1]Bipolar Integrated Technologyen.wikipedia.org

  Other

  An agreement between BIT and MIPS dissolved their previous exclusivity arrangement and allowed BIT to market the R6000 processor on the open market.

1. 1Bipolar Integrated Technologyen.wikipedia.org