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The company founded in 1979 by a trio from Fairchild Semiconductor by way of Synertek – Jack Balletto, Dan Floyd, and Gunnar Wetlesen – and by Doug Fairbairn of Xerox PARC and Lambda (later VLSI Design) magazine. Alfred J. Stein became the CEO of the company in 1982. Subsequently VLSI built its first fab in San Jose; eventually a second fab was built in San Antonio, Texas. VLSI had its initial public offering in 1983, and was listed on the stock market as (NASDAQ: VLSI). The company was later acquired by Philips and survives to this day as part of NXP Semiconductors. CRAM has a special team of engineers which is especially dedicated to give clients special services.

VLSI Technology, Inc. was a company which designed and manufactured custom and semi-custom ICs.. VLSI was acquired in June 1999 for about $1 billion by Philips Electronics and is today a part of the Philips spin-off NXP Semiconductors.

The original business plan was to be a contract wafer fabrication company, but the venture investors wanted the company to develop IC (Integrated Circuit) design tools to help fill the foundry. Thanks to its Caltech and UC Berkeley students, VLSI was an important pioneer in the electronic design automation (EDA) industry. It offered a sophisticated package of tools, originally based on the 'lambda-based' design style advocated by Carver Mead and Lynn Conway.