Virata Corporation
Virata Corporation was a British-founded semiconductor and communications-software company that helped develop DSL and broadband access technology before merging into GlobespanVirata and later Conexant.
Last updated October 14, 2026
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Overview
Virata Corporation was a semiconductor and communications-software company associated with the development of the Cambridge high-technology cluster known as Silicon Fen or the Cambridge Phenomenon. Its origins lay in Advanced Telecommunication Modules Ltd, or ATML, a company formed in June 1993 as a spin-off from the Olivetti Research Laboratory in Cambridge, United Kingdom. The company was founded by Hermann Hauser and Andy Hopper and initially concentrated on products for asynchronous transfer mode, or ATM, networking. ATML entered the emerging market commonly described as “ATM to the desktop,” supplying hardware and related technology for high-speed networking. The expected expansion of ATM adoption did not occur as quickly as the company had anticipated. In September 1997, ATML therefore changed strategic direction, reducing headcount and moving toward semiconductor design, communications software, and technology licensing. In February 1998 it adopted the name Virata Limited. The Virata name was connected to an ATML product family and also evoked the Italian nautical expression for changing course or tacking against the wind. Virata broadened its technology base through acquisitions. In July 1998 it acquired RSA Communications of Raleigh, North Carolina. After becoming a Delaware corporation in August 1999, it prepared for a United States public offering. The initial public offering took place on November 17, 1999, when the company offered five million shares at $14 per share on NASDAQ under the symbol VRTA. A substantial secondary offering followed in July 2000. These public-market proceeds, combined with earlier venture financing, gave Virata the resources to pursue an aggressive acquisition and product-development program. During 2000, Virata acquired D2 Technologies, Inverness Systems of Israel, Agranat Systems, and Excess Bandwidth Corporation. The acquisitions expanded its capabilities in communications processors, software, broadband access, wireless networking, and related system technologies. By this period the company operated across locations in Cambridge, Santa Clara, Raleigh, Santa Barbara, Kfar Saba, Maynard, and Taipei, in addition to sales offices. It also participated in technology-industry investment activity, including an investment in Cambridge Silicon Radio alongside Intel, ARM, and other participants. Virata’s business focused on highly integrated semiconductors and communications software for equipment makers. Its technology was intended for DSL access equipment, DSLAMs, router-modems, home gateways, and broadband wireless devices. Products such as the Helium family combined communications processing with software capabilities, while the company also promoted integrated software-on-silicon solutions. These products supported the delivery of high-speed Internet access with functions such as voice, wireless connectivity, and video. The company experienced strong revenue growth between 1998 and 2001, but the telecommunications downturn and increasing consolidation in the DSL semiconductor sector placed pressure on its standalone strategy. Virata’s portfolio was particularly strong in communications processors and integrated networking software, while other suppliers were stronger in physical-layer technology and DSL firmware. In October 2001, Virata agreed to merge with Globespan. Shareholders approved the transaction in December 2001, and the combined company became GlobespanVirata, Inc., traded on NASDAQ as GSPN. GlobespanVirata remained a major DSL semiconductor supplier in 2002. Its Cambridge engineering organization continued developing high-end DSL silicon and software and helped integrate technology obtained through later transactions, including Intersil wireless technology. However, market commoditization and the need to reduce operating costs led to office closures and layoffs. GlobespanVirata subsequently agreed in November 2003 to combine with Conexant Systems. The merger was completed on March 1, 2004, ending Virata as an independent corporate entity. Further reductions followed, and Conexant eventually closed the Cambridge site in 2005. Virata’s longer-term influence survived through the engineers, intellectual property, and spin-out companies that entered the wider semiconductor and communications ecosystem.
History
Virata Corporation developed from Advanced Telecommunication Modules Ltd, a Cambridge spin-off from the Olivetti Research Laboratory established in June 1993. Its founding reflected the research and entrepreneurial networks that helped form the Cambridge high-technology cluster. Hermann Hauser and Andy Hopper were among its founders, and Hauser served as chairman for much of the company’s independent existence. The original ATML business focused on ATM networking products and the ambition of extending ATM technology toward desktop and enterprise users. Adoption proved slower than expected, and in 1997 the company reorganized around semiconductor design and licensing. This involved a substantial reduction in staff and a move away from being primarily an ATM systems manufacturer. In February 1998, the company became Virata Limited, a name associated both with an existing product family and with the idea of changing course. Virata raised five rounds of venture financing before accessing the public markets. It acquired RSA Communications in 1998 and incorporated in Delaware in 1999, establishing its corporate headquarters in Santa Clara, California. Its November 1999 IPO on NASDAQ raised capital for expansion, and a large secondary offering in July 2000 provided further financial resources. During 2000, Virata acquired D2 Technologies, Inverness Systems, Agranat Systems, and Excess Bandwidth. The acquisitions supported a broader strategy covering communications processors, integrated software, broadband access, wireless networking, and related semiconductor technologies. The company’s products were aimed at manufacturers of DSL and broadband equipment. Virata supplied chips and software for DSLAMs, router-modems, home gateways, and other access devices. Its communications processors and integrated software-on-silicon products were intended to simplify equipment development, increase differentiation, and shorten time to market. The Helium product family was one example of its semiconductor offering. A new European headquarters opened at Cambridge Science Park in May 2001, reflecting the importance of the Cambridge engineering operation. Virata grew rapidly in the late 1990s and early 2000s, but the telecommunications downturn exposed the limitations of remaining independent in a consolidating and increasingly commoditized DSL-chip market. Management pursued a merger with Globespan, a New Jersey-based communications semiconductor company. Shareholders approved the transaction in December 2001, and the combined business became GlobespanVirata. The new company continued to hold a strong position in DSL semiconductors and retained Cambridge-based research and development capabilities. Cost reductions followed, including office closures and layoffs. GlobespanVirata later agreed to combine with Conexant Systems, with the merger completed on March 1, 2004. The Cambridge organization was progressively reduced as software and intellectual property activities moved elsewhere, and the site closed in 2005. Although the Virata name disappeared as an independent company, former employees contributed to numerous later semiconductor, wireless, software, and technology ventures. In this sense, Virata’s legacy included not only products and acquired intellectual property but also the circulation of technical and entrepreneurial talent through the Cambridge and international communications industries.
- 2005
Cambridge site closes
[1]Following further staff reductions and transfers of intellectual property and operations, the remaining Cambridge site was closed.
- 2004
GlobespanVirata combines with Conexant
[1]The merger with Conexant Systems was completed on March 1, 2004.
- 2001
Cambridge Science Park headquarters opens
[1]Virata opened a new European headquarters and engineering facility at Cambridge Science Park.
- 2001
Merger with Globespan approved
[1]Shareholders approved the merger that created GlobespanVirata, ending Virata’s independent corporate trajectory.
- 2000
Acquisition-led expansion
[1]Virata acquired D2 Technologies, Inverness Systems, Agranat Systems, and Excess Bandwidth to expand its communications technology portfolio.
- 1999
Virata becomes a Delaware corporation
[1]Virata Corporation was incorporated in Delaware and established its corporate headquarters in Santa Clara, California.
- 1999
Initial public offering
[1]Virata completed its NASDAQ IPO on November 17 under the ticker VRTA.
- 1998
ATML adopts the Virata name
[1]The company changed its name to Virata Limited and acquired RSA Communications in the United States.
- 1997
Strategic shift toward semiconductor design
[1]Slow uptake of ATM systems led ATML to reduce headcount and focus more heavily on semiconductor design and technology licensing.
- 1993
Advanced Telecommunication Modules is founded
[1]Advanced Telecommunication Modules Ltd was formed in Cambridge as a spin-off from the Olivetti Research Laboratory, with Hermann Hauser and Andy Hopper among its founders.
Products and positioning
A developer of highly integrated communications semiconductors and software for broadband access equipment manufacturers, with a particular emphasis on DSL, networking processors, wireless connectivity, and faster equipment development.
Networking hardware
ATM networking products
ATML’s original product activity centered on asynchronous transfer mode networking hardware. The company participated in the effort to extend ATM technology toward desktop and enterprise networking applications. This business established the technical base from which the company later moved toward semiconductor design, licensing, and integrated communications platforms.
DSL and broadband semiconductors · 2001
Helium family
The Helium family represented Virata’s communications-semiconductor approach for broadband access equipment. Helium devices were intended for use by equipment manufacturers building DSL infrastructure, router-modems, home gateways, and related systems. The Helium 210-80 is identified as a product launched during the company’s early-2000s expansion.
Communications processors
Argon family
Argon products formed part of Virata’s communications-processing portfolio. They were designed to provide semiconductor functions that could be integrated into broadband and networking equipment, alongside software intended to support voice, wireless, video, and high-speed Internet access features.
Embedded communications software
Integrated Software on Silicon
Virata promoted integrated software-on-silicon solutions that combined communications-processing hardware with networking software. The objective was to help DSL and broadband equipment suppliers simplify product development, differentiate their systems, and bring access products to market more quickly.
Marketing campaigns
- 2000Business of the Year recognition
United Kingdom
Virata was named Business of the Year in the Business Weekly East of England Business Awards, reflecting its visibility within the regional technology economy.
Outcome. The recognition reinforced Virata’s association with the Cambridge and East of England technology cluster.
Brand decisions
2003
Combination with ConexantM&ABackground
DSL semiconductor products were becoming increasingly commoditized, while the combined company continued to face pressure to reduce costs.
Action taken
GlobespanVirata and Conexant Systems announced a strategic merger, completed on March 1, 2004.
Aftermath
Virata no longer existed as an independent company, and subsequent restructuring reduced the Cambridge operation before its closure.
2001
Merger with GlobespanM&ABackground
Telecommunications-market weakness and consolidation in DSL semiconductors made scale and complementary technology increasingly important.
Action taken
Virata agreed to combine with Globespan, with shareholders approving the transaction in December 2001.
Aftermath
The combined company became GlobespanVirata and continued operating as a significant DSL semiconductor supplier.
2000
Acquisition program for broadband and communications technologiesM&ABackground
After raising substantial venture and public-market capital, Virata sought to expand beyond its existing communications-processor capabilities.
Action taken
The company acquired D2 Technologies, Inverness Systems, Agranat Systems, and Excess Bandwidth.
Aftermath
The acquisitions broadened Virata’s products and engineering footprint across DSL, wireless, communications software, and related technologies.
1998
Rebranding as VirataStrategyBackground
The company’s new product and licensing direction required a corporate identity distinct from its original ATM-focused name.
Action taken
Advanced Telecommunication Modules changed its name to Virata Limited.
Aftermath
The Virata identity became associated with integrated broadband semiconductors and communications software.
1997
Shift from ATM systems toward semiconductor design and licensingStrategyBackground
The company concluded that adoption of its ATM systems business was slower than expected.
Action taken
ATML reduced headcount and redirected resources toward semiconductor design and technology licensing.
Aftermath
The change created the strategic foundation for the later Virata communications-processor and broadband-semiconductor business.
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