Raytheon launches ASIC design company - News Flash

Electronic News, Feb 4, 2002 by Liz Neely

RAYTHEON CO. OF LEXINGTON, MASS., LAST WEEK SAID IT has launched a new company called TeIASIC Communications Inc. that will develop ASICs for advanced wireless products.

TelASIC's products will be based on Raytheon's RF technology. The company, based in El Segundo, Calif., has already secured $22.5 million in funding, Raytheon said.

Investors include Com Ventures, Mission Ventures, Redpoint Ventures and Raytheon. Raytheon has also partnered with Milcom Technologies, a Florida-based venture development company that specializes in technology spinouts from the defense industry. Raytheon will own about 20 percent of TelASIC.

"TelASIC is a terrific example of how Raytheon is seizing opportunities to commercialize defense technologies," said Daniel P. Burnham, Raytheon's chairman and CEO, in a statement. "Formation of this startup represents a disciplined, market-driven approach to penetrating high-growth markets without increased financial risk to Raytheon."

The technology and the core team needed to create TelASIC will be spun out of Raytheon's $8 billion electronic systems business. Tony Giraudo, former VP and general manager at Atmel Corp., takes over as TelASIC's CEO.