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In 1999, Swiss fabless chipmaker XEMICS said its capital had reached 8.3 million Swiss francs ($12.7 million) after a second venture round. The company planned to use the backing to expand marketing of its low-power integrated circuits, especially in the United States and the Far East—not to announce a new product launch. Semtech acquired XEMICS in 2005; its Neuchatel operation then became part of Semtech’s Wireless and Sensing Products line.
What did the 1999 financing mean?
XEMICS SA was founded in 1997 as a spinout of the Swiss Center for Electronics and Microtechnology (CSEM). In its 1999 announcement, the company said its capital had risen to 8.3 million Swiss francs, then reported as $12.7 million, following a second venture round. The named participants were TAT Capital Partners, Banexi Ventures Partners, the Cantonal Bank of Vaud, and XEMICS senior management (EE Times, 1999; BNP Paribas, 1999).
The stated purpose was to broaden the company’s market presence. CEO Roland Heer said, “With our secured financial position we can now focus on expanding our market presence, especially in the U.S.A. and in the Far East” (quoted by EE Times, 1999). The announcement was about growth capital for marketing, rather than a launch of a particular chip.
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| Figure | What it describes | Source and date |
|---|---|---|
| 8.3 million Swiss francs ($12.7 million) | XEMICS’ reported capital after its second venture round | EE Times, 1999 |
| 7.8 million Swiss francs ($11.9 million) | Initial financing reported for XEMICS | EE Times, November 1998 |
| 16 million French francs | Banexi Ventures Partners’ contribution to a reported 34-million-franc XEMICS capital increase | BNP Paribas, 1999 |
These are figures reported in different currencies and contexts: the 8.3 million Swiss francs is the company’s stated capital after the second round, while the 16 million French francs is one investor’s contribution to a reported capital increase. They should not be treated as interchangeable measures of the same transaction.
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What did XEMICS make, and where were its chips used?
XEMICS focused on chips designed to use very little power, particularly for battery-powered wireless and sensing products. Its capabilities spanned several functions that could be used separately or integrated into portable systems.
- Microcontrollers: 8-bit RISC devices for control and processing tasks.
- Wireless: RF receivers and transceivers for communications.
- Sensing: sensor interfacing and data acquisition.
- Audio and signal processing: audio converters and embedded digital signal processors.
Contemporary reporting associated the company’s technology with digital hearing aids, sensor interfaces, and wireless communications. Semtech later described the technology set as sensor interfacing and data acquisition, 8-bit RISC microcontrollers, RF transceivers, and audio converters for highly integrated battery-powered wireless and sensing products.
What happened to XEMICS after the funding round?
Semtech announced an agreement to acquire XEMICS in June 2005 and completed the acquisition on June 23, 2005. Semtech’s SEC filing says the Swiss operation was renamed Semtech Neuchatel and placed within its Wireless and Sensing Products line. XEMICS therefore stopped operating as an independent company, while its Swiss engineering operation continued inside Semtech.
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Acquisition scale and consideration
Semtech’s 2005 acquisition announcement counted 77 XEMICS employees, including 56 in research and development. Semtech’s SEC filing described approximately $59.0 million in total potential consideration: approximately $43.3 million paid at closing, with up to $16.0 million contingent on performance objectives. These are transaction figures from 2005, not current company or product data.
Why Semtech was the next step
The acquisition connected XEMICS’ low-power chip expertise with Semtech’s broader sales, marketing, manufacturing, and capital resources. XEMICS CEO Alain Dantec said, “Semtech’s size and infrastructure should accelerate the development of a broad portfolio of new proprietary products based on our unique technology” (quoted by SWI swissinfo.ch, 2005).
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why the financing and acquisition matter
The 1999 capital announcement shows a company seeking to scale the marketing of a broad low-power chip portfolio, with particular attention to the U.S. and Far East. The later acquisition changed the company’s route to market and ownership: XEMICS’ Swiss operation became Semtech Neuchatel, rather than continuing as an independent XEMICS brand. The available figures describe historical financing, staffing, and transaction terms; they do not establish present-day inventory or availability of XEMICS-branded parts.
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