Key Stats
- Founded: September 10, 1981 in Milpitas, California
- Final Revenue (FY 2016): $1.42 billion
- Acquisition Price: $14.8 billion by Analog Devices (2017)
- Peak Employees: Approximately 4,900 (FY 2016)
- Products: Over 7,500 analog integrated circuits
Linear Technology Corporation was an American semiconductor company that designed, manufactured, and marketed high-performance analog integrated circuits. The company focused on power management, data conversion, and signal conditioning applications across telecommunications, automotive, industrial, and military sectors.
Founded in Silicon Valley by engineers who left National Semiconductor, Linear Technology built a reputation for engineering excellence and an unusually strong corporate culture. The company maintained employee turnover rates below 5% and never conducted layoffs during its 35-year independent history.
Linear Technology operated as an S&P 500 company and became known for industry-leading profit margins, often exceeding 75% gross margin. Analog Devices completed its acquisition of Linear Technology in March 2017, with the Linear name continuing as the “Power by Linear” brand.
Linear Technology History
Robert Swanson and Robert Dobkin founded Linear Technology Corporation on September 10. The company started with four co-founders who left National Semiconductor to focus exclusively on linear analog integrated circuits.
Linear Technology introduced its first products, including precision operational amplifiers like the LT1001. The company established itself as a second-source supplier to gain market presence.
The company went public with a stock offering in May 1986. Annual sales reached $35 million and Linear Technology reported its first net income of $1.17 million.
Linear Technology announced plans to build a wafer fabrication facility in Camas, Washington. Revenue reached $150 million as the company expanded into automotive and telecommunications markets.
Forbes named Linear Technology to its Best 200 Small Public Companies list. Revenue reached $265 million with net income of $84.7 million.
Lothar Maier became CEO while Robert Swanson transitioned to Executive Chairman. The company continued its focus on high-performance analog circuits.
Linear Technology acquired Dust Networks, a provider of low-power wireless sensor network technology, expanding into the Internet of Things market.
Analog Devices announced agreement to acquire Linear Technology for $14.8 billion in cash and stock. The company employed 4,900 people and offered over 7,500 products.
The Analog Devices acquisition closed on March 10, 2017. Linear Technology’s brand continued as “Power by Linear” for power management products.
Linear Technology Co-founders
Robert H. Swanson, Jr.
CEO and later Executive Chairman. Former VP at National Semiconductor with a degree in Industrial Engineering from Northeastern University. Served as employee #1.
Robert C. Dobkin
Vice President of Engineering and Chief Technical Officer. Former Director of Advanced Circuit Development at National Semiconductor. Recognized as one of the industry’s top analog designers.
Brent Welling
Co-founder who helped establish Linear Technology’s initial operations and business strategy alongside Swanson and Dobkin.
Brian Hollins
Co-founder and early team member who contributed to building Linear Technology’s engineering-focused corporate culture.
Linear Technology Revenue
Linear Technology demonstrated consistent revenue growth throughout its independent history. The company reached $1 billion in annual revenue by fiscal year 2008 and maintained strong performance through market cycles.
In fiscal year 2016, the company reported revenue of $1.42 billion, representing a 3.5% decline from the prior year’s $1.48 billion. Despite occasional market downturns, Linear Technology maintained industry-leading gross margins exceeding 75%.
Linear Technology Marketcap
Linear Technology’s market capitalization grew substantially from its 1986 IPO through its 2017 acquisition. The $14.8 billion acquisition price reflected strong investor confidence in the company’s product portfolio and engineering talent.
As an S&P 500 component, Linear Technology attracted institutional investors who valued its consistent profitability and shareholder-friendly policies including regular dividends and stock repurchases.
Linear Technology Acquisitions
Linear Technology took a notably conservative approach to acquisitions during its 35-year history. The company made only one significant acquisition, preferring organic growth and internal product development over external expansion.
In December 2011, Linear Technology acquired Dust Networks, a Hayward, California-based provider of low-power wireless sensor network technology. Dust Networks had pioneered SmartMesh wireless mesh networking technology, which complemented Linear Technology’s strengths in industrial instrumentation and power management.
The Dust Networks acquisition extended Linear Technology’s product portfolio into industrial process control, building automation, and data center energy management. Dust Networks’ customers included major industrial automation providers like GE and Emerson, as well as companies focused on renewable energy and smart infrastructure.
This strategic acquisition positioned Linear Technology as a player in the emerging Internet of Things market. The company integrated Dust Networks’ low-power radio technology with its existing sensor interface products and energy harvesting solutions to offer complete wireless sensor networking systems.
Linear Technology itself became an acquisition target in 2016. Analog Devices, another major analog semiconductor company, offered $14.8 billion to acquire Linear Technology. The deal closed in March 2017, with Linear Technology becoming part of Analog Devices while maintaining the “Power by Linear” brand for power management products.
Linear Technology Competitors
Linear Technology competed in the analog semiconductor market against several major companies. Texas Instruments remained the largest competitor, offering a comprehensive portfolio of over 80,000 analog products across all market segments.
The analog semiconductor market experienced significant consolidation during the 2010s. Companies like Intel focused on digital processors while analog specialists like Analog Devices and Maxim Integrated competed for high-performance applications.
| Company | Headquarters | Primary Focus |
|---|---|---|
| Texas Instruments | Dallas, Texas | Analog and embedded processing semiconductors |
| Analog Devices | Wilmington, Massachusetts | Data conversion and signal processing ICs |
| Maxim Integrated | San Jose, California | Analog and mixed-signal ICs |
| Infineon Technologies | Munich, Germany | Power semiconductors and automotive ICs |
| STMicroelectronics | Geneva, Switzerland | Analog, digital, and mixed-signal ICs |
| ON Semiconductor | Phoenix, Arizona | Power management and sensing solutions |
| NXP Semiconductors | Eindhoven, Netherlands | Automotive and IoT semiconductors |
| Renesas Electronics | Tokyo, Japan | Microcontrollers and analog semiconductors |
| Microchip Technology | Chandler, Arizona | Microcontrollers and analog products |
| Semtech | Camarillo, California | Analog and mixed-signal semiconductors |
FAQs
Who founded Linear Technology Corporation?
Robert Swanson and Robert Dobkin founded Linear Technology in 1981. Both co-founders previously worked at National Semiconductor and left to create a company focused on high-performance analog integrated circuits.
When was Linear Technology acquired?
Analog Devices acquired Linear Technology on March 10, 2017 for approximately $14.8 billion in cash and stock. The Linear name continues as the “Power by Linear” brand.
What products did Linear Technology make?
Linear Technology designed and manufactured analog integrated circuits including power management ICs, data converters, operational amplifiers, voltage regulators, and wireless sensor network products for industrial and military applications.
Where was Linear Technology headquarters located?
Linear Technology was headquartered in Milpitas, California in Silicon Valley. The company also operated design centers and manufacturing facilities across the United States and internationally.
Why was Linear Technology called the company no one leaves?
Linear Technology earned this reputation due to its exceptionally low employee turnover rate below 5%. The company offered generous profit-sharing, maintained a no-layoff policy, and fostered an engineering-focused culture with minimal bureaucracy.