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Computers, General news

P.A. Semi Makes Its Debut


P.A. Semi emerged from virtual anonymity Monday to introduce its first set of general-purpose processors for computing, networking, and consumer electronics equipment.

The Santa Clara, California-based startup has developed a line of a processor family called PWRficient, which are multi-core chips that are higher-performing than chips with one core, or engine. The company is “fabless,” meaning it contracts with manufacturers that actually produce the chips.

The company hasn’t lined up customers yet, but it’s attractive partly because of the successes of its founders, including CEO Dan Dobberpuhl, who has garnered awards for low-power processor designs. He sold his previous company, SiByte, to Broadcom for $2.2 billion in 2000.

Broadcom

“The next wave of microprocessor innovation is contingent on solving the problem of dramatically increased power consumption,” Mr. Dobberpuhl said. “We had to start from scratch, rethinking every step, to achieve our breakthrough performance-per-watt design.”

The dual-core PWRficient processor can be 10 times more power efficient than similar chips on the market. The company said. It runs at 2 GHz but uses only between five watts to 13 watts.

P.A. Semi has licensed IBM’s PowerPC design to develop its processors. PowerPC chips from IBM are used in computers, servers, and gaming consoles, among other products. Mr. Dobberpuhl believes the design has untapped appeal and can find greater acceptances in other markets. Right now, IBM and Freescale Semiconductor are the two suppliers of PowerPC chips.

IBM

Targeting Variety of Markets

Mr. Dobberpuhl said his company is targeting a variety of markets, including servers, telecom networking, imaging, storage, and consumer electronics such as set-top boxes. But he conceded that the server market isn’t a prime focus, given that the market is dominated by machines made with chips from Intel and Advanced Micro Devices, both of which use a non-PowerPC design.

Advanced Micro Devices

The company is also eyeing the gaming console market. That will pit P.A. Semi against IBM, which supplies processors to the top three console makers, Sony, Microsoft, and Nintendo.

SonyNintendo

The telecom networking market would be P.A. Semi’s best bet, said Kevin Krewell, editor in chief of Microprocessor Report. The market is growing and filled with chip companies jockeying for contracts. But it also provides an opportunity for a startup such as P.A. Semi to shine. The company should aim to win customers such as Cisco, Mr Krewell said.

Cisco

“They have a great technology and design team,” Mr. Krewell said. “Networking is probably its best market right now.”

P.A. Semi has received two rounds of funding totaling $36 million from Bessemer Venture Partners, Venrock Associates, and Silicon Valley Bank, according to Private Equity Week.

Private Equity Week.

The startup is looking for additional money because the cost of developing and manufacturing its new family of processors would cost at least $100 million, said Leo Joseph, chief operating officer of P.A. Semi. The company has 150 employees.

The company has lined up a United States-based contract chip maker to produce its processors, but Mr. Dobberpuhl declined to name the chip maker. P.A. Semi plans to start producing its first processor, a dual-core version, in small quantities in the third quarter of 2006.

The startup will roll out the single-core and quad-core version of the processors in 2007, and the eight-core chip in 2008.