Silicon Systems Acquires Stake in Electronic Design Company

Silicon Systems of Tustin, pursuing its goal of attracting new customers, has acquired a majority interest in SilCom, new specialty electronic component design and development company in Lake Forest.

A spokesman for Silicon Systems said the move is expected to give the company, which invested less than $1 million in the venture, a new outlet for its major product: silicon chips.

According to the spokesman, SilCom will design and build circuit boards tailor-made for individual customers in the telecommunications field. Silicon chips purchased from Silicon Systems will be used.

Circuit boards, the so-called brains of electronic devices, contain a variety of chips whose combinations and configuration determine the purpose and operations of the board.

Silicon Systems’ ownership percentage in the new company was not revealed.

SilCom was founded by an engineering and marketing team from Rockwell International and later attracted two employees from Silicon Systems.

Although the new company initially was to have become a division of Silicon Systems, the company spokesman said projections for SilCom indicate that its potential operations justify creating a separate entity.

In fiscal 1984, ended Sept. 29, Silicon Systems had earnings of $8.1 million on revenues of $56.6 million.