Exar Corporation

Exar Corporation was a United States semiconductor company established in California in 1971 by Japan-based ROHM Co., Ltd. It was created to give ROHM a closer connection to American integrated-circuit design activity and a stronger presence in the U.S. semiconductor market. Over time, Exar developed from a ROHM-controlled design and marketing subsidiary into a publicly traded semiconductor supplier with its own product portfolio, acquisitions, engineering organization, and customer relationships. The company’s products covered several parts of the analog and mixed-signal semiconductor value chain. Its portfolio included power-management integrated circuits, interface devices, communications components, UART bridges, GPIO expanders, analog front-end products for sensors, power-distribution switches, synchronous optical-network transceivers, BITS framers and line-interface units, inductive step-down converters, and related devices used with systems containing processors, DSPs, FPGAs, video processors, and other digital logic. This positioning allowed Exar to serve equipment manufacturers and system designers that needed supporting analog, power, timing, data-conversion, and connectivity functions around larger digital components. Exar’s ownership structure changed repeatedly during its history. In the early 1980s, the business generated approximately $25 million in annual sales, with only about one-third of those sales coming through ROHM. U.S. political pressure on Japanese participation in the American semiconductor industry contributed to ROHM’s initial reduction of its stake. Exar completed an initial public offering in 1985, after which ROHM’s ownership fell below 70 percent. The company then encountered financial difficulty after acquiring Exel Microelectronics in the mid-1980s. Exar had sought Exel’s technology and fabrication assets, but the acquired plants required substantial investment before they could operate effectively. The resulting capital burden weakened profitability for the remainder of the decade. ROHM responded by repurchasing outstanding Exar shares and returning the company to full ownership. With ROHM’s support, Exar was able to invest more heavily in research and development and eventually regain profitability, helped by new EEPROM and ASIC products. ROHM later resumed its divestment program, reducing its ownership below 50 percent by 1990 and completing its exit from Exar-related assets in 1994. During this transition, Exar also moved away from a management structure dominated by ROHM-appointed executives. In 1992, ROHM removed chief executive Nabuo Hatta, and Exar’s board appointed George Wells, whose previous experience included General Electric and LSI Logic. Wells led a reorganization that narrowed priorities, emphasized product quality, and improved sales and income performance. With increased cash resources, Exar pursued a series of acquisitions in 1994 and 1995, buying Origin Technology, Micro Power Systems, Startech Semiconductor, and Silicon Microstructures. These transactions broadened Exar’s technology base but also created integration and cost pressures; the company had lost profitability again by early 1995. In the following decades, Exar continued to expand selectively through acquisitions. It completed the purchase of hi/fn in 2009, acquired Altior’s assets in 2013, bought Stretch, Inc. later in 2013, and acquired most of Integrated Memory Logic Limited in 2014. These deals added technologies in areas including networking, acceleration, communications, and display or memory-related semiconductors. Exar maintained a public-market profile during the 2000s and 2010s, including a Nasdaq opening-bell ceremony in 2011. Its independent existence ended in 2017. MaxLinear announced an agreement on March 29, 2017, to acquire Exar for cash, and the transaction closed in May 2017. Publicly reported consideration was approximately $661.6 million when the transaction was announced and approxima…

ROHM Co., Ltd. established Exar in California in 1971 as an American subsidiary intended to strengthen the parent company’s connection with U.S. integrated-circuit design and marketing. Exar’s initial role reflected the increasingly international nature of semiconductor development: ROHM manufactured and designed integrated circuits, while an American presence gave it closer access to engineers, customers, and market knowledge in the United States. By the early 1980s, Exar was generating roughly $25 million in annual sales, and only about one-third of its revenue came through ROHM. The company benefited from proprietary technologies developed by Exar and ROHM, but its ownership became politically and strategically complicated. As the U.S. government pressed Japanese companies to reduce their involvement in American industry, particularly semiconductors, ROHM gradually reduced its stake. Exar’s 1985 initial public offering lowered ROHM’s ownership to below 70 percent. Exar’s acquisition of Exel Microelectronics in the middle of the 1980s produced a major setback. Exar wanted Exel’s technology and semiconductor fabrication facilities, but the facilities were not ready for profitable operation and required substantial additional capital. The investment burden reduced Exar’s profits through the end of the decade. ROHM subsequently repurchased outstanding Exar shares and restored full ownership. This rescue gave Exar the financial and organizational support to develop its acquired assets and increase research and development spending. New EEPROM and ASIC products helped the company return to profitability. ROHM later resumed divesting Exar. By 1990 it owned less than half of the company, and in 1994 it completed its final divestment of Exar-related assets. Management also became more American and less directly controlled by ROHM. ROHM removed chief executive Nabuo Hatta in 1992, after which Exar’s board selected George Wells. Wells had worked at General Electric and LSI Logic and brought a reorganization and quality-focused operating culture to Exar. The company reprioritized products, improved sales and income, and accumulated enough cash to pursue acquisitions. In 1994 and 1995, Exar acquired Origin Technology, Micro Power Systems, Startech Semiconductor, and Silicon Microstructures. The deals expanded its available technologies but were difficult to integrate, and Exar had lost profitability again by early 1995. The company nevertheless continued to build a broad semiconductor portfolio rather than remaining focused on a single device category. Exar’s later history included a series of targeted acquisitions. It closed the acquisition of hi/fn in April 2009 for stock and approximately $67 million in cash. In 2013 it acquired the assets of Altior and then acquired Stretch, Inc. In 2014 it bought most of Integrated Memory Logic Limited. These transactions supported Exar’s presence in communications, networking, processing, memory-related, and mixed-signal applications. The company also retained public visibility, including a Nasdaq opening-bell ceremony in August 2011. The standalone company ended in 2017. MaxLinear announced on March 29 of that year that it would acquire Exar for cash. The transaction closed in May, with completed consideration reported at approximately $687 million. Exar continued briefly as a wholly owned subsidiary, but it is now a defunct standalone corporate brand whose products and technologies were absorbed into MaxLinear’s operations.

• 2017

  Acquisition by MaxLinear

  [1]Exar Corporationen.wikipedia.org

  MaxLinear announced and completed its cash acquisition of Exar, ending Exar’s independent corporate existence.

• 2014

  Integrated Memory Logic transaction

  [1]Exar Corporationen.wikipedia.org

  Exar acquired most of Integrated Memory Logic Limited.

• 2013

  Altior and Stretch transactions

  [1]Exar Corporationen.wikipedia.org

  Exar acquired Altior’s assets and later acquired Stretch, Inc.

• 2009

  hi/fn acquisition closes

  [1]Exar Corporationen.wikipedia.org

  Exar completed its acquisition of hi/fn in a stock-and-cash transaction.

• 1994

  ROHM completes final divestment

  [1]Exar Corporationen.wikipedia.org

  ROHM completed its final divestment of Exar assets, leaving Exar to operate as an independent public semiconductor company.

• 1992

  George Wells becomes chief executive

  [1]Exar Corporationen.wikipedia.org

  Following ROHM’s removal of Nabuo Hatta, Exar’s board appointed George Wells, who led a reorganization and product-prioritization program.

• 1985

  Initial public offering

  [1]Exar Corporationen.wikipedia.org

  Exar completed an initial public offering, reducing ROHM’s ownership stake to below 70 percent.

• 1971

  Exar is established in California

  [1]Exar Corporationen.wikipedia.org

  ROHM Co., Ltd. established Exar as a U.S.-based subsidiary to improve access to American integrated-circuit design capabilities and semiconductor customers.

A specialized semiconductor supplier serving system designers with analog, mixed-signal, interface, communications, and power-management components that complement processors and other digital devices.

• Power management

  Power-management ICs

  Exar’s power portfolio included devices designed to regulate, distribute, and sequence power in systems built around SoCs, DSPs, FPGAs, video processors, and other digital components. The range included power-management ICs, power-distribution switches, and inductive step-down converters. These products addressed board-level power conversion and delivery requirements in communications, industrial, computing, and embedded equipment.

• Interfaces

  Interface and UART bridge ICs

  Exar supplied interface devices that connected processors and digital systems to serial or peripheral equipment. UART bridges were intended to provide serial connectivity and protocol conversion in embedded and communications designs. The company also offered GPIO expanders, allowing systems with limited processor pins to control additional digital inputs and outputs.

• Communications semiconductors

  Communications and optical-network products

  The communications portfolio included synchronous optical-network transceivers, BITS framers, and line-interface units. These products supported timing, framing, transmission, and physical-interface functions in telecommunications and networking equipment. Their role was generally complementary to larger networking processors and system controllers.

• Analog and mixed signal

  Sensor-interface and analog-front-end devices

  Exar offered analog front ends and sensor-interface products for systems that needed to capture, condition, or translate signals from sensors before digital processing. These devices extended the company’s reach beyond conventional interface and power components into measurement and embedded-control applications.

• Memory and custom integrated circuits

  EEPROM and ASIC products

  EEPROM and ASIC products played an important role in Exar’s return to profitability after its restructuring in the late 1980s. EEPROM devices provided nonvolatile data storage, while ASIC capabilities supported application-specific system functions. These products reflected Exar’s broader mixed-signal and application-oriented semiconductor strategy.

• 2017

  Sale to MaxLinearM&A

  Background

  Exar’s independent corporate history ended when MaxLinear sought to combine its analog, interface, power, and communications assets with MaxLinear’s semiconductor portfolio.

  Action taken

  MaxLinear announced a cash acquisition on March 29, 2017, and completed the transaction in May 2017.

  Aftermath

  Exar became a wholly owned subsidiary for a short period and is now considered a defunct standalone company. Completed consideration was reported at approximately $687 million.

  Acquisition consideration. Approximately $661.6 million announced consideration → Approximately $687 million completed consideration (2017)

  Source

• 2014

  Acquisition of most of Integrated Memory LogicM&A

  Background

  Exar pursued additional technology and product capabilities through a transaction involving Integrated Memory Logic Limited.

  Action taken

  Exar acquired most of Integrated Memory Logic Limited.

  Aftermath

  The acquisition added to Exar’s mixed-signal and memory-related technology base.

  Source

• 2013

  Acquisitions of Altior and StretchM&A

  Background

  Exar continued using acquisitions to add specialized technologies and expand its semiconductor portfolio.

  Action taken

  It acquired the assets of Altior and later acquired Stretch, Inc.

  Aftermath

  The transactions expanded Exar’s available technologies in processing, networking, and related system applications.

  Source

• 2009

  Acquisition of hi/fnM&A

  Background

  Exar sought to broaden its communications and networking semiconductor capabilities through the purchase of hi/fn.

  Action taken

  The company closed a transaction involving Exar stock and approximately $67 million in cash.

  Aftermath

  hi/fn’s technologies became part of Exar’s wider communications-oriented portfolio.

  Cash consideration. Approximately $67 million (2009)

  Source

1. 1Exar Corporationen.wikipedia.org
2. 2Exar Corporation official website archiveweb.archive.org