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Background
of KMI In
the 1960s, a semiconductor known as MOS-LSI
(Metal Oxide Silicon Large Scale Integration) was the key component
of electronic calculator, a very early stage of the modern personal
computer. MOS-LSI was developed by R&D units of Fairchild
Semiconductors,
Motorola and Texas Instruments, the First Genera- tion TRIO of Semiconductor
Industry. However, none of them were successful producing it in
large volume. It
was in this climate that several former Fairchild people founded AMI
(American Microsystems Inc.) in Santa
Clara, California, and began to successfully produce MOS-LSI in high
volume for the first time. The founders included Howard Bobb
(President), Vallandingham
(VP, Finance),
Warren Wheeler
(VP, Engineer- ing) and Charlie Isherwood
(VP, Manufacturing). AMI
was founded at almost the same time as the Second Generation TRIO of
the Semiconductor
Industry - Intel, National Semiconductors and AMD. Since AMI was the only supplier of MOS-LSI,
the company made a huge
profit (perhaps too much?) and had to pay a large amount of income
tax. Not only to avoid huge tax bill
but also to expand capacity to meet the fast growing market demand, AMI decided to build a
Wafer Fabrication Plant in Pocatello, Idaho. However, even after
such a considerable investment, a large amount of taxable profit
remained. In
1969, Manny Choy completed his assignment at Fairchild Semikor (Semiconductor
Korea) in
Seoul, and returned to Silicon Valley. He contacted AMI and
got the agreement to build an AMI Assembly Plant in Korea. At the
time, AMI had
only a small Pilot Assembly Line at its Santa Clara facility and
subcontracted most of its assembly to a Mexican company in Tijuana,
Mexico. Since RICOH, an early electronic calculator
manufacturer in Japan, was one of AMI's major customers, a Korean
plant would make it very convenient to assemble, test and ship MOS-LSI directly
from Korea to Ricoh in Japan. And
this was how KMI began. |
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