Synertek

Synertek, Inc.

Company type	Private
Industry	Semiconductor
Founded	1973
Founder	Bob Schreiner, Dan Floyd, Jack Balletto, Gunnar Wetlesen, Zvi Grinfas
Defunct	1985
Fate	Acquired by Honeywell in 1979; operations terminated in 1985
Headquarters	Santa Clara, California , United States
Area served	United States
Key people	Bob Schreiner (CEO)
Products	MOS 6502 microprocessors (licensed versions), static RAMs, ROMs, dynamic/static shift registers, Zilog Z8 microcontrollers
Parent	Honeywell (from 1979)

Synertek, Inc. was a U.S.-based semiconductor company established in 1973 by Bob Schreiner (CEO), Dan Floyd, Jack Balletto, Gunnar Wetlesen, and Zvi Grinfas. Schreiner, Floyd, Balletto, and Wetlesen previously worked at Fairchild Semiconductor, making Synertek one of the well-known "Fairchildren." The company rose to significance in the late 1970s and early 1980s by producing licensed versions of the MOS 6502, a widely popular microprocessor. Synertek secured major supply agreements with Apple Computer and Atari, contributing chips to millions of home computers and games consoles.

Starting out with second-hand machinery, Synertek soon found its manufacturing output insufficient to meet demand. When the board opted not to fund a new facility, the company was acquired in 1979 by Honeywell, which operated Synertek as a partly independent division. However, Honeywell’s failure to establish a stock options program led to executive turnover and difficulties in attracting talent. By the early 1980s, as Apple and Atari transitioned to the Motorola 68000, Synertek’s revenues plummeted due to a lack of fresh product offerings. Honeywell ultimately shut down the division in 1985.

Following the acquisition, several executives departed to create VLSI Technology.

Early years

Synertek initially produced both custom-designed components and standard products such as static RAMs, ROMs, and dynamic/static shift registers utilizing MOS/LSI technology. Schreiner chose not to develop an internal microprocessor because supporting software infrastructure like compilers was too complex. Instead, he arranged a cross-licensing deal with John Pavinen of MOS Technology for the MOS 6502. This agreement allowed Synertek to act as a second source supplier—a critical market requirement at that time—and gain access to support chip designs compatible with the 6502.

At the 1977 West Coast Computer Faire, Steve Wozniak selected a Synertek ROM chip for the Apple II after a competitor’s chip delivery was delayed. Soon after, Steve Jobs and Wozniak secured a $30,000 credit line from Schreiner to purchase Synertek’s 6502 chips for their startup, Apple Computer. Although their appearance was informal, Schreiner approved the transaction with strict payment conditions; Apple grew into a dependable multi-million-dollar client.

Jack Balletto, Synertek’s marketing manager, introduced the company to Atari, where Al Alcorn confirmed prior familiarity with the 6502. Unable to obtain credit from Intel or National Semiconductor, Atari benefited from favorable terms offered by Synertek. By the next year, Atari’s orders surpassed Synertek’s yearly production capacity by 120%, prompting Synertek to subcontract part of Atari’s demand to Rockwell International, which also became a significant supplier of 6502 chips. Atari remained Synertek's largest customer for several years.

Synertek also established second source agreements for the Philips/Signetics 2650 processor and the Zilog Z8. In 1982, it became a secondary source for Digital Equipment Corporation’s DCT11 microprocessor.

After acquiring Microcomputer Associates—including engineers Manny Lemas and Ray Holt—Synertek created Synertek Systems, Inc., a subsidiary company. In 1978, Synertek Systems released the SYM-1, a single-board computer and evaluation kit based on the 6502 processor derived from MOS Technology/Commodore Semiconductor Group's KIM-1 design.

Acquisition by Honeywell

To maintain a competitive edge, the company required a new semiconductor manufacturing facility ("fab"). Their existing Sunnyvale fabs, assembled incrementally with secondhand machinery, produced lower yields and incurred higher expenses compared to rivals such as Intel and NatSemi. Schreiner requested approximately $250 million from the board to build a cutting-edge fab, but the proposal was rejected.

He then sought collaboration with partners to finance expansion, suggesting a new fab in Santa Cruz to mitigate the frequent employee turnover prevalent in Silicon Valley. While Standard Oil expressed interest, Honeywell offered to acquire the company outright after Schreiner warned that without internal microprocessor manufacturing, their survival was at risk. Although there were doubts about managing operations remotely, Honeywell CEO Ed Spencer pledged minimal interference and consented to introduce stock options to help retain key employees.

Honeywell finalized the acquisition in 1979, yet complications emerged immediately. Schreiner’s effort to procure a PDP-11 computer for design support was blocked by Honeywell’s mainframe division, which feared internal competition. Although a mainframe was provided free of charge on a rental basis, the promised design software never came through. The lack of stock options led to the departure of essential staff; recruitment efforts also faltered.

Shortly thereafter, Floyd, Balletto, and Wetlesen left to establish the semiconductor company VLSI Technology. Schreiner followed suit soon after. Honeywell appointed a new manager with experience overseeing a valve factory in Mexico. The Santa Cruz fab never became operational because key personnel refused relocation due to doubts about the company’s prospects. Eventually, the facility was sold to Western Digital, which had no connections to Silicon Valley.

During this time frame, Steve Jobs approached Synertek seeking a 16-bit variant of the 6502 processor. Schreiner declined due to cost concerns but offered development if Apple provided funding; Jobs declined this offer, prompting Apple to select the Motorola 68000 instead. Atari adopted the same processor the following year, leading to a collapse in Synertek’s sales. By that point, custom chip development had ceased, Honeywell’s mainframe division still lacked design software, and no licenses for modern processors had been obtained. The only new product was the low-end Zilog Z8 microcontroller used in Honeywell’s programmable thermostats as a replacement for the original Chronotherm.

By 1985, with all key personnel gone and no design capabilities or new product lines remaining, Honeywell terminated Synertek’s operations.

Facilities

Synertek operated its semiconductor fabrication facility at 3050 Coronado Drive in Santa Clara, California from 1974 until 1985. This site was later found to be contaminated with organic solvents such as trichloroethane, trichloroethylene, and vinyl chloride, necessitating a Superfund cleanup due to hazardous groundwater pollution.

Around 1983, Synertek initiated construction of an additional manufacturing plant in Santa Cruz, California. However, declining market conditions—largely related to setbacks at Atari—led to suspension of construction and eventual sale of the Santa Cruz facility.

External links

• Synertek profile on chipdb.org