Exar Corp. designs, develops, and markets analog, digital, and mixed-signal integrated circuits for use in telecommunications, data communications, microperipherals, consumer electronics products, and other goods. The circuits are sold primarily to other manufacturers who install them in various electronic systems and equipment. Exar grew rapidly during the late 1980s and early 1990s by introducing cutting-edge products and acquiring other companies.
Exar started out as a small subsidiary of the Japanese semiconductor manufacturer Rohm Company Ltd. of Kyoto, Japan. Rohm was founded in Japan in 1954. Rohm became involved in the electronics components industry and eventually began designing and manufacturing integrated circuits, which were originally developed in the United States. Rohm established the subsidiary in the United States in 1971 as a way of strengthening its presence in North American markets and getting access to U.S. technology. Throughout the 1970s and early 1980s, Exar was led by Rohm expatriates from Japan that came to the United States. During that time, Exar existed as a relatively small designer and manufacturer of analog and integrated circuits as a sort of U.S. sister company for Rohm.

In 1992, George Wells was hired to replace the japanese managing director. Wells was born in Scotland and received his bachelor's degree in physics from the University of Glasgow, where he also studied nuclear physics for two years. After college he went to work for Fairchild Camera and Instrument from 1969 to 1980 before laboring in various management positions at ITT and GTE. Wells then served as the head of General Electric's global semiconductor operations from 1983 to 1985 before acting as vice-chairman for LSI Logic between 1985 and 1992.

Rohm completely eliminated its ownership affiliation with Exar in 1994. The two companies continued to do business with each other, however. After experiencing record sales and income growth, Exar ran into turbulence in 1994, largely because of its rampant acquisition campaign but also because of problems related to its existing hard-disk chip business and an economic slowdown in Japan. Sales stagnated at about $160 million in the fiscal year that ended March 31, 1995, and earnings plunged to a negative $11.08 million. Despite the loss, Exar management remained optimistic. Wells attributed the loss to fallout from the company's final transition from commodity-like goods to high-margin products. In fact, Exar's strength in key growth technologies, its proven research and development expertise, and its meager debt load suggested a positive long-term outlook for the semiconductor manufacturer.

[compressed extract from the "Fundinguniverse" Exar Corp. history]