National Semiconductor

National Semiconductor Corporation
Company type	Public
Industry	Semiconductor
Predecessor	Sperry Rand Corporation semiconductor division (founders departed)
Founded	May 27, 1959; 67 years ago in Danbury, Connecticut, U.S.
Founder	Dr. Bernard J. Rothlein and seven associates
Defunct	September 23, 2011
Fate	Acquired by Texas Instruments
Successor	Texas Instruments "Silicon Valley" division
Headquarters	Santa Clara, United States
Area served	Worldwide
Key people	Peter J. Sprague (Chairman), Charles E. Sporck (President and CEO), Gilbert F. Amelio (CEO and Chairman), Brian L. Halla (Chairman, President, and CEO)
Products	Analog components and subsystems, power management ICs, display driver chips, audio and operational amplifiers, communication interface devices, data conversion technologies
Parent	Texas Instruments (since 2011)

National Semiconductor Corporation was a U.S.-based semiconductor company focused on analog components and subsystems, with its headquarters located in Santa Clara, California. The company's offerings encompassed power management ICs, display driver chips, audio and operational amplifiers, communication interface devices, and data conversion technologies. National Semiconductor catered to diverse sectors including wireless communication devices, display technologies, medical equipment, automotive systems, industrial applications, and test and measurement instruments.

On September 23, 2011, Texas Instruments completed the acquisition of National Semiconductor, integrating it as its "Silicon Valley" division.

Origins

National Semiconductor was established on May 27, 1959, in Danbury, Connecticut by Dr. Bernard J. Rothlein along with seven associates who departed from Sperry Rand Corporation’s semiconductor division. Initial legal disputes with Sperry Rand adversely affected National’s stock price, which allowed investor Peter J. Sprague to assume leadership as chairman at the age of 27, supported by West Coast venture capital firms and a New York-based underwriter. This era represented an early instance of venture capital involvement.

In 1965, National expanded by acquiring Molectro, a Santa Clara firm founded by ex-Fairchild engineers J. Nall and D. Spittlehouse. This deal brought prominent linear semiconductor designers Robert Widlar and Dave Talbert into National’s ranks and facilitated the company's entry into monolithic integrated circuit production.

By 1967, Sprague had attracted five senior executives from Fairchild Semiconductor, among them Charles E. Sporck and Pierre Lamond. Sporck assumed the roles of president and CEO, accepting significant stock incentives to offset a pay reduction from his previous position at Fairchild. He assembled a leadership group of eight professionals drawn from Fairchild, Texas Instruments, Perkin-Elmer, and Hewlett-Packard to spearhead National’s expansion.

In 1968, the company shifted its headquarters to Santa Clara while retaining its Delaware incorporation for legal and financial reasons.

Throughout its history, National grew through acquisitions such as Fairchild Semiconductor in 1987 and Cyrix in 1997; however, these businesses were subsequently divested—Fairchild in 1997 and Cyrix’s microprocessor segment sold to Taiwan’s VIA Technologies in 1999.

Between 1997 and 2002, National earned acclaim for pioneering consumer electronics products like the Cyrix Media Center and WebPad developed by its Conceptual Products Group. This success prompted the launch of the Information Appliance Division in 1998, which specialized in integrated processors and internet-enabled devices; this division was ultimately sold to AMD in 2003.

In the years leading up to its acquisition by Texas Instruments, National streamlined its focus by divesting units involved in digital wireless chipsets, image sensors, and PC I/O chipsets to concentrate on high-performance analog semiconductor solutions.

National Semiconductor's evolution

Peter Sprague, Pierre Lamond, and CEO Charlie Sporck worked closely with the board of directors to transform National Semiconductor into a global semiconductor powerhouse. Upon taking on the CEO position, Sporck initiated an aggressive price competition that eliminated many rivals from the market, including major players like General Electric and Westinghouse exiting the semiconductor industry.

Sporck’s emphasis on reducing expenses, minimizing overhead costs, and maximizing profitability enabled National to endure this intense pricing battle and become the first semiconductor firm to exceed $1 billion in annual revenue by 1981. The company’s primary expertise was in analog electronics, transistor–transistor logic (TTL), and MOSFET integrated circuit technologies. Drawing on their backgrounds at Fairchild, Sporck and Lamond redirected National’s strategy toward industrial and commercial sectors while decreasing dependence on defense contracts. This strategic realignment combined with expanding computer usage drove substantial growth in market share. Financial support from Sprague alongside innovative cash flow strategies implemented by Sporck and Lamond underpinned this expansion.

Sporck was also a pioneer in outsourcing manufacturing offshore by investing in production facilities located in emerging economies, particularly throughout Southeast Asia. Process improvements under his guidance focused on standardizing manufacturing techniques based on proven practices from Fairchild and Texas Instruments while recruiting skilled personnel from competing companies.

Limitations in Sporck’s Leadership

Although National Semiconductor experienced strategic expansion under Sporck, the company lacked robust marketing efforts and primarily functioned as a cost-focused mass producer of standard semiconductors. This approach restricted its ability to fully exploit the growing consumer electronics markets.

In 1981, several key leaders exited, including Pierre Lamond, a former chief integrated circuit designer who later joined Sequoia Capital, and Robert Swanson, founder of Linear Technology. Swanson expressed dissatisfaction with the company’s move toward conventional corporate structures, which he found stifling for innovation.

During the technology surge of the 1980s, Sporck’s reliance on outsourced sales limited the company’s agility in engaging with innovators and academic researchers. As a result, National’s offerings became easily duplicated commodities. While it ranked among the lowest-cost semiconductor producers in the U.S., it struggled to compete against cheaper Asian manufacturers. This vulnerability contributed to difficulties competing with Japanese semiconductor firms during the 1980s and later with emerging Taiwanese and South Korean competitors.

Leadership under Gilbert F. Amelio

On May 27, 1991, Gil Amelio succeeded Charles E. Sporck as CEO and president of National Semiconductor. Amelio brought a strong background in the industry, having led Rockwell International’s semiconductor division and holding a physics Ph.D. from Georgia Institute of Technology, along with experience at Fairchild.

Amelio took control of a company burdened by excess capacity and shrinking market share despite investing US$1 billion in research and development over five years. He redirected the company’s focus toward its core analog semiconductor products, divesting non-essential assets while prioritizing cost efficiency, improved utilization of production capacity, waste reduction, and shorter production cycles. Facilities deemed redundant were either consolidated or sold off.

During Amelio’s tenure, National Semiconductor experienced consistent revenue growth, culminating in a record US$2.29 billion in 1994 amid a revival of U.S. semiconductor industry prominence. He implemented productivity benchmarking, overhauled marketing approaches, and modernized management systems and workplace culture.

Amelio restructured product lines into two categories: the low-margin Standard Products Group consisting of logic and memory chips susceptible to market fluctuations, and the higher-margin Communications & Computing Group focused on analog and mixed-signal components. This division set the stage for future divestments of commodity product segments.

To advance manufacturing capabilities, National Semiconductor constructed a new eight-inch (200 mm) wafer fabrication facility in South Portland, Maine while divesting its Israeli plant located in Migdal HaEmek, which was transformed into Tower Semiconductor. In 1995, Amelio was appointed chairman of the board.

In 1996, Amelio joined Apple Computer’s board and shortly thereafter became its CEO during a period of corporate challenges. Consequently, National Semiconductor announced his resignation from all leadership roles on February 2, 1996.

Leadership under Brian L. Halla

Brian L. Halla assumed the roles of chairman, president, and CEO at National Semiconductor on May 3, 1996. Prior to this appointment, he led LSI Logic’s logic products division and accumulated 14 years of experience at Intel. Halla focused on leveraging National’s strength in analog technologies while expanding into personal computer and graphics markets.

Halla promoted the PC-on-a-chip (system-on-a-chip) concept, anticipating that information appliances would eventually replace traditional PCs. To support this vision, National Semiconductor acquired several companies: Cirrus Logic’s PicoPower unit targeting compact devices; Mediamatics for multimedia connectivity solutions; Future Integrated Systems specializing in PC graphics; Gulbransen for digital audio technology; ComCore Semiconductor focusing on digital signal processing; and Cyrix, known for producing Intel-compatible x86 processors.

On March 11, 1997, National divested Fairchild’s Standard Products group for $550 million—the same amount paid for acquiring Cyrix earlier that year. The November 1997 merger established Cyrix as an independent subsidiary concentrating on budget CPU markets aligned with National’s system-on-a-chip strategy. However, this acquisition shifted National from partner to rival with Intel, temporarily resulting in lost Intel business until Cyrix was eventually sold.

The acquisition of Cyrix also required National to utilize IBM Microelectronics for chip manufacturing, conflicting with plans to transition production to its South Portland fabrication facility. After incurring substantial losses within the processor segment, National sold Cyrix to VIA Technologies in 1999.

In 1999, National contemplated selling a majority interest in its South Portland wafer fab but ultimately decided against it. In 2000, it entered into a partnership with Taiwan Semiconductor Manufacturing Company (TSMC) to transfer advanced fabrication technologies to the South Portland plant.

Facing financial challenges, National announced in March 2009 that it would close its assembly and testing operations in Suzhou, China as well as its wafer fabrication plant located in Arlington, Texas. On October 9, 2009, Brian Halla stepped down as CEO but remained executive chairman; Donald Macleod succeeded him as chief executive officer.

Leadership under Donald Macleod

Donald Macleod assumed the role of CEO at National Semiconductor on November 30, 2009, and later took on the position of board chairman on May 31, 2010. His leadership was pivotal during a significant period of transformation for the company.

Acquisition by Texas Instruments

On April 4, 2011, Texas Instruments revealed plans to acquire National Semiconductor for $6.5 billion in cash, offering $25 per share—a premium of 80% over that day’s closing price. This transaction greatly enhanced Texas Instruments' presence in the analog semiconductor market. After receiving necessary regulatory clearances, including approval from Chinese authorities on September 19, 2011, the deal was finalized on September 23, 2011, effectively merging National Semiconductor’s portfolio into Texas Instruments’ worldwide operations.

Manufacturing locations

Chronology of manufacturing sites
Year	Details
1967	Initiated testing activities in Hong Kong.
1969	Commenced production in Greenock (Scotland), Fürstenfeldbruck (Germany), and Singapore; acquired lead-frame producer DynaCraft.
1972	Established assembly and testing facilities in Malacca and Penang, Malaysia.
1975	Began final manufacturing processes in Bangkok (Thailand) and Bandung (Indonesia).
1976	Launched assembly and test operations in Manila (Philippines); started four-inch wafer fabrication in West Jordan, Utah.
1979	Opened an aerospace component assembly plant in Tucson, Arizona.
1985	Started six-inch wafer fabrication in Arlington, Texas.
1987	Acquired Fairchild Semiconductor from Schlumberger, incorporating headquarters in South Portland, Maine, along with wafer fabrication plants.
1989	Shut down facilities located in Danbury, Connecticut.
1990	Consolidated Singapore manufacturing into Fairchild’s Toa Payoh site; divested Puyallup, Washington facilities to Matsushita Electric Industrial.
1992	Closed Tucson assembly operations while maintaining the location as a design center.
1995	Sold DynaCraft to Carsem Enterprises.
1996	Initiated construction of an approximately $932 million eight-inch wafer fab adjacent to former Fairchild premises in South Portland.
1997	Brought eight-inch wafer fabrication online; Kirk Pond-led executives reacquired Fairchild Semiconductor for $550 million, reorganizing corporate assets across Penang (Malaysia), Cebu (Philippines), West Jordan (Utah), and Toa Payoh (Singapore).
2002	Began building a $200 million final manufacturing facility in Suzhou, China.
2004	Commenced final manufacturing operations at Suzhou site.
2005	Closed Toa Payoh final manufacturing; transferred production activities to Melaka (Malaysia) and Suzhou (China).
2009	Ceased operations at Suzhou final manufacturing and Arlington wafer fab; centralized manufacturing in Melaka (Malaysia), South Portland (Maine), and Greenock (Scotland).
2011	Integrated into Texas Instruments following acquisition on September 23.

In addition to these locations, National Semiconductor operated a six-inch wafer fabrication plant in Migdal Ha'Emeq, Israel. In 1993, it sold majority ownership but retained a minority stake of 19%. This facility now functions as Tower Semiconductor, illustrating strategic portfolio realignment.

Products

Analog circuits such as operational amplifiers, buffer amplifiers, comparators, integrated circuits, voltage regulators, and voltage references
Audio circuitry for sound recording and playback
Microcontrollers
Networking hardware
Data conversion devices
Interface circuitry
Display technologies
Temperature sensing components
Basic switching regulators

History of National Semiconductor logo and product identification

The images below depict the progression of National Semiconductor’s branding, beginning with founder Charlie Sporck’s tenure and continuing through later leadership phases.

External links