Kendin Communications

Kendin Communications operated as a fabless semiconductor company, establishing a specific niche in the networking equipment sector prior to its acquisition. Founded in 1996 by Dr. Tian Liou, who also served as its CEO, the Sunnyvale-based firm focused on the design, development, and marketing of high-performance integrated circuits for the communications and networking markets.

The company's business model was centered on providing core components to manufacturers of networking hardware. Kendin developed and sold ethernet chips, including physical-layer devices (PHYs), repeaters, and switches designed for Ethernet, Fast Ethernet, and Gigabit Ethernet applications. This placed it in a competitive landscape alongside major players like Broadcom, Intel, and Marvell.

A significant aspect of Kendin's strategic position was its proprietary technology. The company utilized a patented algorithmic signal processing architecture for its chip designs. This approach reportedly provided considerable advantages over the more common digital signal processor (DSP)-based designs of the era, enabling lower power consumption, smaller die sizes, and potentially greater manufacturing yields.

The firm successfully attracted venture capital, raising $20.2 million from investors including Venrock to fuel its growth. The company's trajectory culminated in a strategic acquisition by Micrel Inc., which was completed on May 31, 2001. The stock-for-stock transaction was valued at approximately $215 million, reflecting Kendin's valuable intellectual property and market position. For Micrel, the acquisition provided an immediate and substantive entry into the physical-layer IC and switch-chip markets, complementing its existing portfolio of analog and mixed-signal products.

Keywords: fabless semiconductor, ethernet chips, physical-layer IC, PHYs, network switches, algorithmic signal processing, Micrel acquisition, Tian Liou, gigabit ethernet, networking hardware, integrated circuits, communications chips, Venrock, semiconductor design, network components