Umtech
| Company type | Private |
|---|---|
| Industry | Personal computers |
| Founded | 1976 |
| Founder | Dr. Albert Yu, Dr. David Chung |
| Defunct | 1979 |
| Fate | Integrated into Cha Group |
| Headquarters | Sunnyvale, California , United States |
Area served | United States, Germany |
Key people | Dr. Albert Yu (President), Dr. David Chung (Vice President) |
| Products | VideoBrain Family Computer, integrated circuits (UM1, UM2) |
Number of employees | >100 (1979) |
| Parent | Cha Group |
Umtech Incorporated, recognized also as VideoBrain Computer Company, was a trailblazer in the early personal computer industry, responsible for creating and distributing the VideoBrain Family Computer—the inaugural PC available through department store retail channels. Although it attracted considerable attention and pre-orders after its 1978 unveiling at the Consumer Electronics Show, widespread consumer adoption did not materialize. Production ended in 1979, and subsequently, Umtech was integrated into its primary investor, the Cha Group.
History
Established in 1976 by Dr. Albert Yu—formerly an Intel integrated circuit engineering manager and company President—and Dr. David Chung, the creator of the Fairchild F8 microprocessor, Umtech set up operations in Sunnyvale, California. Funding originated from Yu’s father-in-law, Cha Chi Ming, who led the Hong Kong-based Cha Group. Later on, employees were offered minor ownership stakes through stock option plans.
The company marketed its products under the VideoBrain brand name.
Integrated circuits
Umtech engineered two custom-designed chips that enabled the VideoBrain to display output on conventional color television sets. The UM1 chip controlled sixteen rectangular objects on screen, each adjustable in size, position, image content, and color—under the direction of the F8 CPU. It produced pixel data for every raster scan line of the TV signal, resulting in a display resolution superior to most video games available at that time. The UM1 chip (Patent #4,232,374) was developed with Dr. Chung supervising its design.
The UM2 chip functioned as the system clock and generated NTSC video signals; however, a PAL-compatible variant was never created. Producing the UM2 proved difficult due to precise timing demands essential for maintaining system stability.
Photomasks for these integrated circuits were created manually by hand-drawing; Umtech utilized internal steppers and chip testers to ensure manufacturing quality.
Hardware and system design
In a manner similar to Apple's later Macintosh, the VideoBrain’s casing was sealed to prevent user access for hardware upgrades. Like the Commodore PET, it featured an integrated keyboard within the computer enclosure. Borrowing concepts from video game systems, VideoBrain pioneered storing software on ROM cartridges instead of relying on cassette tapes or 5.25” floppy disks, enhancing reliability.
The system operated on an F8 processor paired with proprietary chips and included 1K of RAM alongside 1K of ROM containing resident software. Although memory capacity was limited, programmers optimized functionality effectively within these constraints.
Its unconventional keyboard comprised 36 flat keys with shallow travel and incorporated a "Master Control" reset button—reflecting the modest system capabilities.
Connectivity options included four joystick ports and a proprietary RS-232 interface designed for an extender device and a timesharing terminal cartridge; however, these peripherals saw limited sales. Additional interfaces consisted of TV output selectable between channels 3 or 4 and an external AC power adapter.
To meet FCC electromagnetic interference standards, the motherboard was encased within a metal shield. The outer plastic enclosure was engineered for economical mass manufacturing.
Software
Programs were developed in F-8 assembly language and assembled into machine code using a Hewlett-Packard minicomputer. The 1K ROM housed startup routines, font data, and four built-in applications: text editor, clock, alarm, and color display.
Umtech produced fourteen software titles spanning Education, Entertainment, and Financial Management sectors. Although they designed a cartridge featuring 1K RAM that supported APL-like programming along with an educational simulation called Old Regime, these products were never commercially released.
A comprehensive catalog of software titles can be found here.
Packaging, distribution, and marketing
Umtech consistently offered the computer as a complete "system" that included software cartridges, rather than selling the hardware alone. The System 100 was priced at $500 and came bundled with three cartridges. Initially, the product was presented in vibrant, consumer-friendly packaging, but this was later replaced by larger, simpler boxes designed to enhance protection during transit.
Significant events in the marketing and sales timeline include:
- January 1977 – Conducted market research at the Consumer Electronics Show (CES) in Chicago
- Spring 1977 – Began initial discussions with manufacturer representatives and Interstate Electronics, a principal distributor
- April 1977 – Demonstrated a portable prototype to a German distributor at the Hannover Messe industrial exhibition
- June 1977 – Held meetings with RadioShack and other retailers at CES in Las Vegas
- January 1978 – Official launch at CES Las Vegas supported by professional marketing materials; secured $2.5 million in orders, exceeding Apple’s sales at the event. Orders were placed by major department stores such as Macy’s, Bloomingdale's, Lord & Taylor, Nordstrom, along with numerous electronics retailers
- February 1978 – Appeared on The Today Show; retail debut featured a dedicated promotion at Macy’s San Francisco store, resulting in Macy’s highest electronics sales day to date
- March 1978 – Commenced shipping; however, shipment delays led many department stores to cancel their orders
- June 1978 – Exhibited again at CES
- January 1979 – Did not participate in CES; some manufacturer representatives withdrew from active involvement
Distribution was managed through Interstate Electronics based in Chicago and a key German distributor introduced via Raymond Koo of Raitronics from Hong Kong. Umtech also sold directly to specialty computer shops such as Computerland and utilized manufacturer representatives; military post exchanges (PXs) emerged as a profitable niche market.
Advertising efforts were initially handled by Regis McKenna of Palo Alto—an agency known for its work with Intel and Apple—until Apple requested McKenna to discontinue services for Umtech following the 1978 CES. Subsequently, Umtech retained Wilton, Coombs & Colnett from San Francisco. Marketing campaigns targeted both mainstream and computer-specific publications to stimulate retail interest. The product’s branding shifted during 1978 from "family computer" to "home computer," highlighting its multi-user capabilities and justifying its price point.
This marketing strategy aligned with Umtech’s overall business approach emphasizing integrated product offerings, collaborations with distributors and retailers, and focused promotional efforts aimed at securing a foothold in the nascent home computing market.
Facilities and manufacturing
Research and development activities began in 1976 within David Chung’s residence in Palo Alto, California. In October of that year, operations moved to a modest facility on Sobrante Way in Sunnyvale. By 1977, the company relocated to more spacious premises on Wolfe Road in Sunnyvale where limited manufacturing commenced. In 1978, expansion led to a volume production facility on Patrick Henry Drive in Santa Clara. After scaling down operations and moving into a smaller Palo Alto location, the Patrick Henry facility was successfully sub-leased to ROLM for profit.
Employees
By 1979, Umtech's workforce had grown to exceed 100 employees. The leadership team and notable staff members consisted of:
- Dr. Albert Yu – President
- David Chung – Vice President overseeing Engineering and Marketing
- John Cosley – Lead Engineer for Chips, Hardware, and Systems
- Len Chen – Engineer specializing in Chip Design
- Bob Frankovich – Head of Design Automation
- Niall Shapero – Senior Software Engineer
- Pavel Stoffel – Senior Software Engineer
- Mike Hall – Senior Software Engineer
- Bruce Mackay – Manufacturing Director
- Bob Samuel – Engineer in Manufacturing
- Ed Alemany – Manager of Customer Service
- Richard Melmon – Marketing Director
- Darhsiung (Dash) Chang – Product Manager
- Ted Haynes – Product Manager and Marketing Manager
Umtech’s role in the evolution of personal computing
The VideoBrain represented a forward-thinking initiative aiming to advance personal computing before the technology and consumer acceptance were fully matured. Although microcomputers were relatively unknown to the general public during the late 1970s, some industry leaders anticipated their future market significance and transformative potential. Despite being premature for its time, VideoBrain introduced the innovative use of ROM cartridges for straightforward and dependable software loading at a period when floppy disks were uncommon and expensive.
VideoBrain holds the distinction of being the first personal computer marketed as a consumer product through department stores. Nevertheless, owning or operating a computer was still daunting for the average buyer. For technically knowledgeable users, VideoBrain’s capabilities were limited—it lacked user programmability, featured a restricted keyboard, and contained only 1K of fixed RAM without expansion options. Furthermore, its pricing placed it between inexpensive video game consoles and more powerful computers, which constrained its market appeal.
Following VideoBrain’s release, personal computer manufacturers redirected their efforts from hobbyist enthusiasts toward business clientele. In particular, Apple’s Macintosh benefited from insights gained through Umtech’s early endeavors by delivering an intuitive system that required no hardware alterations. Supported by effective marketing campaigns, Macintosh reassured consumers that using a computer at home was accessible—an objective initially pursued by VideoBrain.
References
- Notes
- Personal memories shared by former Umtech staff members Ted Haynes, Niall Shapero, John Cosley, and Jack Moynihan
- Business Week, December 26, 1977 Industrial Edition: The First Entry-level Home Computer
- John Crudele, Halt Output, Cut Staff at Video Brain, Electronic News, April 23, 1979
- VideoBrain User Manual
- Wikipedia entry on VideoBrain Family Computer
External links
- Articles with short description
- 1976 establishments in California
- 1979 disestablishments in California
- American companies established in 1976
- American companies disestablished in 1979
- Companies based in Palo Alto, California
- Companies based in Sunnyvale, California
- Computer companies established in 1976
- Computer companies disestablished in 1979
- Defunct companies based in the San Francisco Bay Area
- Defunct computer companies of the United States
- Defunct computer hardware companies
- Defunct computer systems companies
- Technology companies based in the San Francisco Bay Area
- 5
- Companies of the United States by year of establishment