Synaptics

Synaptics

Type	Public
Traded as	NASDAQ: SYNA
Industry	Computer hardware
Founded	California (1986)
Headquarters	San Jose, California, USA
Key people	Federico Faggin, Co-founder Carver Mead, Co-founder Rick Bergman, CEO Wajid Ali, CFO
Products	TouchPad TouchStyk TDDI ClickPad ClearPad SentryPoint PurePrint Touchscreen Controllers DDIC Display Drivers Natural ID Fingerprint Sensors ForcePad SecurePad
Revenue	$1.67 billion USD (2016) [1]
Operating income	$75.2 million USD (2016) [1]
Net income	$72.2 million USD (2016) [1]
Number of employees	1,763 (2016)[2]
Website	www.synaptics.com

Synaptics is a human interface solution developer. It develops and supplies intuitive human interface solutions for a range of electronic devices and products worldwide. Synaptics sells its solutions to original equipment manufacturers (OEMs) for applications including smartphones, tablets, notebooks, automobiles, wearables and PC peripherals.

Synaptics has 1600+ granted and pending patents for human interface solutions.^[3] The company is headquartered in San Jose, California, and trades on the NASDAQ stock exchange under the symbol SYNA.

History

Synaptics was founded in 1986 by scientists and engineers Federico Faggin and Carver Mead, inspired by their interest in neural networks and their applications in technologies. Faggin and Mead applied their research and discoveries on neural networks and transistors on chips to build touch sensing solutions. The name of the company was derived from this combination, blending synapse and electronics.

During Synaptics' early years, the laptop industry was struggling to make devices thinner because the spherical trackballs included in them required thicker device builds. Synaptics' founders recognized this issue and in 1992, used the pattern recognition techniques it developed to build the world's first touchpad,^[4] which Apple adopted in 1995. The touchpad was subsequently adopted by other leading computer manufacturers of the time, including Compaq and Dell, launching Synaptics' growth as a company and establishing touchpads as a standard feature in notebook PCs. As integration of the touchpad grew, Synaptics continued to refine its technology, building a vision to integrate it with other solutions and create a range of human interface technologies to expand the company.

Since then, Synaptics' solutions have been adopted in various markets beyond notebook computers. In 2005, Synaptics' sensor technology was featured in the world's first mobile phone to use capacitive-touch technology, the Samsung B310. In 2007, LG launched its Prada phone featuring Synaptics' touch sensors, marking the world's first capacitive-touchscreen mobile phone. Synaptics' touchscreen technology was also featured in Logitech's Harmony family, which debuted in 2008 and brought capacitive-touch capabilities to universal remote controls.

In 2011, current CEO Rick Bergman was appointed to succeed Francis Lee (CEO from 1999-2011) and drive Synaptics' expansion in to new markets.

In 2012, Synaptics introduced the world's first full-function capacitive-touch solution to incorporate pressure recognition (AKA force sensing), enabling multi-finger and variable-force input. The following year, Synaptics acquired Validity Sensors, a fingerprint sensor vendor based in San Jose, adding biometrics and fingerprint sensing to Synaptics' portfolio of solutions.^[5]

Synaptics acquired Required Renesas SP Drivers Inc., a Japanese company specializing in chips that manage LCD displays, in 2014. Synaptics purchased Renesas SP for approximately JPY48.5B ($475 million) for 100% of the company.^[6] The acquisition enabled Synaptics to establish an integrated portfolio of touch and display driver technologies.

The company has since expanded in to additional markets including automotive, wearables and PC peripherals in 2015.

In FY15, Synaptics reported $1.703 billion in revenue and cited a +46% compound annual growth rate.^[3]

Technology

Synaptics products are based on capacitive sensing technology, as opposed to resistive touchscreen technologies. Capacitive touch sensing works by sensing the electrical properties of the finger(s) touching the sensor; a resistive touchscreen senses direct pressure between two clear electrical layers that are separated by a small space, requiring an amount of force.^[7] Capacitive touch sensing solutions are solid state, making them more robust than resistive solutions.
Synaptics's human interface solutions are currently based upon the following key technologies:

• Capacitive position sensing technology
• Capacitive force sensing technology
• Transparent capacitive position sensing technology
• Pattern recognition technology
• Mixed-signal integrated circuit technology
• Display systems and circuit technology
• Capacitive active pen technology
• Multi-touch technology
• Proprietary microcontroller technology
• ThinTouch technology
• Fingerprint sensing technology

Products

Synaptics touchpad

Synaptics' core product families deliver touch sensing, display and biometrics solutions. They include touchpads, touch controllers, fingerprint sensors and integrated solutions.

TouchPad Family^[8] - touch-sensitive trackpads that sense the position and movement of one or more fingers on their surfaces. the TouchPad's core market is notebook PCs and includes:

• TouchPad™- Module enabling user navigation via touch interface
• ClickPad™- "Clickable TouchPad" that also serves as a button
• ForcePad™- TouchPad with pressure-sensitive scrolling and zooming, and press-to-click capabilities anywhere on the TouchPad
• SecurePad™- TouchPad with fingerprint authentication enabling users to authorize online transactions, login to websites and access applications

ClearPad® Touch Controllers^[9] - Capacitive-touch controllers with minimal size and low power requirements, tailored for specific applications:

• Series 1 - for compact displays
• Series 2 - for smartphone touchscreens
• Series 3 - for more feature-rich mobile device displays
• Series 7 - for tablet, PC, notebook, automotive and other applications requiring larger touchscreens

Natural ID™ Fingerprint Sensors (Biometrics)^[10] - Series of fingerprint authentication sensors, combining biometrics and advanced encryption with security, ease of use and cost efficiency. They feature Synaptics' SentryPoint™, which is a suite of security features aggregated to protect users' personal biometric information. Natural ID sensors also function under glass, making it possible to eliminate the home button on smartphones.

ClearView™ Display Drivers^[11] - Display driver integrated circuits (DDIC) with the industry's smallest display ICs and ultra-HD resolution support for more dynamic, design friendly and power-efficient display options, as well as reduced image-load times.

TouchView™ Integrated Touch and Display Controllers^[12] - Solutions integrating touch and display technology in to single and two-chip solutions enabling devices to be thinner and lighter at lower costs. Synaptics touch and display driver integration (TDDI) supports ClearForce for variable force sensing, and ClearView DDIC features for enhancing display brightness, color, contrast and readability in sunlight, and power efficiency. For advanced touch features, TouchView products support virtually all ClearPad touch controller features.

Industry Alliances

Synaptics is a founding member of the FIDO (Fast ID Online) Alliance and the Universal Stylus Initiative (USI).

The FIDO Alliance is an industry consortium that aims to make authentication stronger and simpler, and to reduce reliance on passwords.^[13] Synaptics' Corporate Development Vice President, Adnan Raza, sits on the FIDO Alliance board, representing Synaptics. Other notable Board Members include Google, Microsoft, PayPal, Lenovo, Qualcomm, RSA, Samsung, Bank of America, Visa, Discover, American Express and MasterCard.

USI is an organization of leading OEMs, stylus and touch controller manufacturers driving industry standards to promote interoperable active styluses with touch-enabled devices such as phones, tablets and computing and entertainment platforms. Synaptics' Senior Director of Integrated Display and Touch Products, Jeff Lukanc, is Vice President of USI.

Manufacturing & Supply Chain

Synaptics' manufacturing operations are based on a variable cost model in which it outsource all of its production requirements and generally drop ship its products directly to its customers from its contract manufacturers’ facilities. This eliminates the need for significant capital expenditures and allows the company to minimize its investment in inventories.

The company provides its contract manufacturers with six-month rolling forecasts and issue purchase orders based on anticipated requirements for the next 90 days. It uses two third-party wafer manufacturers to supply wafers and four third-party packaging manufacturers to package its proprietary ASICs.

In certain cases, it relies on a single source or a limited number of suppliers to provide other key components of its products.^[14]

Leadership

Rick Bergman, President and CEO

Wajid Ali, Senior Vice President and CFO

Kevin Barber, Senior Vice President and General Manager, Smart Display Division (SDD)

Jean Boufarhat, Senior Vice President, CAD and SDD Silicon Engineering

Scott Deutsch, Senior Vice President of Worldwide Sales

Karen Gaydon, Senior Vice President of Global Human Resources

John McFarland, Senior Vice President, General Counsel and Secretary

Adnan Raza, Vice President of Corporate Development

Huibert Verhoeven, Senior Vice President and General Manager of the Human Interface Systems Division (HISD)

David Wang, Senior Vice President of Technology and BPD Silicon Engineering

Alex Wong, Senior Vice President of Worldwide Operations

Patrick Worfolk, Senior Vice President of Corporate Research and CTO

References