Israeli company MystiCom has signed a license agreement with VLSI, a subsidiary of Philips Semiconductors. According to the agreement, VLSI will purchase MystiCom’s technology and pay royalties for every component it sells. MystiCom, of Netanya, specializes in chip design for the data communications networks industry.
The agreement is for MystiPHY110, a module introduced into the market a month ago, that significantly accelerates component development speed for the data communications networks industry. The product is used in developing components for network cards, switches, routers, cable modems and more.
MystiCom is a SIP (Silicon Intellectual Property) company, which means it does not manufacture its own developments, but sells them in royalty agreements to chip manufacturers. This represents a relatively new business model that enables manufacturers in the semiconductor field to shorten their product development timetables and time-to-market.
Among the company’s customers are leading semiconductor companies in the US, Europe, and the Far East. Among the company’s shareholders are: Sun Microsystems founder Andy Bechtolsheim, Israeli venture capital funds Polaris and Eucalyptus, Newbury Ventures of the US, and MystiCom founders.
MystiCom was founded in 1997 by Dr. David Almagor, and has payroll of thirty, twenty-five in Israel and five in the US. In 1998, the company posted revenues of a few million dollars.
Published by Israel's Business Arena June 23, 1999