Hubbry Logo
AST ResearchAST ResearchMain
Open search
AST Research
Community hub
AST Research
logo
8 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
AST Research
AST Research
AST Research
View on Wikipedia
from Wikipedia

AST Research, Inc., later doing business as AST Computer, was an American personal computer manufacturer. It was founded in 1980 in Irvine, California, by Albert Wong, Safi Qureshey, and Thomas Yuen, as an initialism of their first names. Wong left the company nine years later, followed by Yuen in 1992, with Qureshey remaining until AST was acquired by Samsung Electronics in 1997.

Key Information

The company began by making a circuit board for the IBM PC that boosted its memory storage. AST went public in 1984 and would be a manufacturer of boards and add-on expansion cards.[2] By the late 1980s, it had evolved into a major personal computer manufacturer with its line of Intel i386 based PC clones, and it was the first vendor to announce an i486 PC. In 1990, AST released an NEC PC-9801 clone in the Japanese market, becoming the first American PC vendor to market an NEC clone.[3]

AST had established itself as one of the known "alternative" brands of PCs in the United States while globally it had numerous plants[2] and was one of the world's largest makers of personal computers. However, increasing competition and its difficulty to integrate the assets of Tandy Corporation acquired in 1993, led to it making major losses in the following years. Samsung Electronics purchased a stake in AST in 1995[4] and bought the company outright two years later, leading to co-founder Qureshey stepping down as CEO and chairman.[5] Unable to recover and causing additional losses to Samsung, AST was de facto closed down in 1999 and its brand name and patents sold to a consortium led by Beny Alagem.[1]

Foundation (1979–1986)

[edit]

AST Research was founded as AST Associates by Thomas C. K. Yuen, Albert C. Wong, and Safi U. Qureshey. All three were immigrants to the United States—Yuen and Wong from Hong Kong and Qureshey from Pakistan.[6]: 122  Yuen had met Qureshey while working for Computer Automation Inc. in the 1970s, while Wong was a roommate of Yuen's while they both attended Orange Coast College in Costa Mesa, California. All had come to the United States to study engineering.[7] Yuen was the principal founder of AST, proposing the creation of the company in 1979. Before breaking into the manufacture of hardware, Yuen envisioned the company as a computer consultancy firm for large businesses.[6]: 122  The three incorporated AST Research with $2,000 of start-up capital in Irvine, California, in July 1980.[8][9]: 41  The company name is an initialism for the three founders' first names. Selecting their initial job titles by drawing straws, Qureshey was named president, Yuen was named treasurer, and Wong was named secretary.[6]: 122 

AST delivered its first products by the end of 1981. By then, the computer consultancy idea had been abandoned, the company was renamed to AST Research, and the trio were deep into researching and developing expansion cards for the original IBM Personal Computer, which had been released in August 1981.[10] The founders deemed the initial models of the IBM PC to have been equipped with an inadequate amount of RAM and communications capability and so devised a range of expansion cards that provided these features.[6]: 122  They are listed in the charter issue of PC Magazine as follows: a series of memory expansion cards, ranging from 64 KB to 256 KB of additional RAM (with parity); a modem card with a phone jack and an RS-232 serial port; two asynchronous serial communication cards, one with a single RS-232 port and the other dual ports; and an advanced serial communication card, featuring two independently programmable RS-232 ports that could be programmed to support asynchronous, bisynchronous, SDLC, and HDLC protocols.[11]

Sales of this initial lineup of products doubled every month within the first year of availability. Needing to keep up with the increasing demand from the customer base, the company vied for venture capital but were turned down by multiple banks. Instead, the founders all took out second mortgages on their residences in 1982 and were able to pool an additional $50,000 to invest into the company. Fortunately for the founders, AST's sales reached $13 million in 1983. This sudden increase in sales finally attracted venture capitalists, who invested $2.4 million in the company. In 1984, the company filed its initial public offering, bearing two million shares to the public[6]: 122  and making the founders millionaires.[12] Qureshey said in 1983 that AST "will become a $200-million company ... and also manufacture our own computers".[13]

AST-designed ASIC with screen printed logo

In late 1983, the company introduced the SixPakPlus, a popular multifunction expansion card for the IBM PC that led to another sharp increase in sales.[10] In a favorable 1984 review, InfoWorld described it as "perhaps the most popular" such card.[14] By then AST had signed an agreement offered by IBM, allowing the latter company to resell AST's expansion cards at its IBM Product Centers and other reseller channels as "official PC expansion products".[14][15]: 16 [16]: 139  In March 1985 AST's executives opened AST Far East, Ltd., in Hong Kong. This was its first international subsidiary, serving as a crucial additional production line for the manufacture of the company's increasingly diverse products. AST's lineup of products by this point counted graphics cards for multiple computing platforms, a hard disk drive unit for the original compact Macintoshes, a multi-function serial/parallel/clock expansion board for the Apple II and a local area network board for the IBM PC.[9]: 41 

From 1984 to 1985, AST's income rose from $5.7 million to $19 million,[17] and from 1985 to 1986, AST's revenues doubled, reaching $138.6 million,[10][12] with SixPakPlus 55% of sales.[18] In March 1986, the company purchased the French computer wholesaler National System Company, in order to establish a second international subsidiary, AST France.[9]: 41  Shortly after, AST company acquired Camintonn, a computer memory maker.[19] By the end of 1986, AST had established overseas divisions in Australia, Germany, the United Kingdom, and Canada. The combined revenue from international subsidiaries contributed to one quarter of the company's revenue.[9]: 41  With this success, AST reincorporated in Delaware to take advantage of its corporate laws.[20]

PC compatibles and Apple expansion (1986–1989)

[edit]

SixPak was so influential that one in six PCs and clones had one by the end of 1984;[18] by 1986 multifunction cards were often called "SixPak clones".[21] AST's expansion card offerings faced imminent obsolescence by late that year, however, as IBM by this point had offered higher-end upgraded models of the IBM PC, chiefly the PC XT and the PC/AT, that integrated most of the features of AST's PC expansion cards.[10] To keep from posting losses, AST laid off seven percent of the company's 890 employees in July 1986;[22] clandestinely, they also laid plans to introduce a line of PC-compatible computer systems.[9]: 41  The AST Premium/286, a clone of the PC/AT featuring an identical Intel 80286 microprocessor, was introduced in October 1986. To make the computer more competitive among a crowded PC compatible market, AST offered the Premium/286 in an optional package that included a discounted laser printer and image scanner, advertised as an inexpensive desktop publishing workstation. AST released an upgraded version of the Premium/286 with the 32-bit Intel 80386 processor—the Premium/386—in October 1987.[23]

RamStakPlus memory board for the Apple IIGS

AST's products for Apple hardware were profitable enough in the interim. In 1986, AST even expanded its Apple support by introducing peripherals for the then-newly released Apple IIGS, with a pair of expansion cards: the SprintDisk 1 MB RAM Disk card and the AST Vision Plus, a real-time video digitizer card.[24] The Vision Plus was eventually sold to Silicon & Software and licensed to Virtual Realities (and sold through LRO and later Alltech Electronics). In 1987 it went on to produce a memory expansion card for the Apple IIGS: the RamStakPlus, a dual RAM/ROM memory expansion card.[25] AST Research also produced for the Macintosh line the Mac286, a pair of NuBus cards containing an Intel 80286 and RAM, allowing a Macintosh to run MS-DOS side by side with its existing operating system.[26]

By 1987 some AST employees thought that their company could achieve $500 million to $1 billion in annual revenue in the next five years, becoming Orange County, California's leading technology company. The Premium/286 accounted for half of the company's sales by July 1987,[13] but it was only a meager success for AST at first.[10] In 1987, the company reported a net income of $13 million,[27] less than half the profit they had posted the preceding year.[9]: 42  AST had several setbacks in 1987, including flat sales of expansion products[13] and delayed shipments of a peripheral for IBM PCs in June 1987 that was a factor in a canceled stock call the following month.[9]: 42 [28] That year, IBM sued AST over alleged trademark infringement of IBM's PS/2 product name occurring in one of AST's print advertisements for RAM, which was settled out of court.[29] In 1988, AST's executives began a reorganization effort to preserve the company. The first initiative was the merging of AST's data communications group into its systems products division.[9]: 42  With the nascent OS/2 operating system coming to market that year, co-developed by IBM and Microsoft, AST licensed the rights from Microsoft to market its own OEM versions of OS/2 as an option for its Premium line of computers.[30]

In late 1988, AST joined eight other major PC compatible manufacturers to develop the Extended Industry Standard Architecture as a viable competitor to IBM's closely guarded Micro Channel bus architecture. This consortium was known as the Gang of Nine, led by Compaq.[31]

From July to November 1988, AST introduced seven models of premium computers,[9]: 42  and in early September 1988, they announced a $2.2 million television advertising campaign, the first commercials of which premiering during the 1988 Summer Olympics that month.[32] The television commercials comprised roughly 20 percent of AST's $12 million advertising budget and were supported by a line of memorabilia, including pins, posters, and video tapes, tying in with the Olympics and offered at computer dealer shows.[9]: 42  By the end of 1988, AST's restructuring and advertising efforts were successful, with year-to-year sales increasing 100 percent to $412.7 million.[33][12] AST was now third place in sales among manufacturers of PC compatibles, behind IBM and Compaq.[34]

In late 1988, Wong was ousted from AST after a heated boardroom debate with Yuen, in which Wong had complained about the company's recent turbulence.[9]: 42  In January 1989, the company laid off 120 employees, or six percent of the workforce. In early 1989, AST reported its first quarterly loss, totaling $8.9 million. The technology press speculated that the loss was due to AST ignoring Intel's development of the i486 while the company was busy restructuring and boosting its advertising. When Intel released the i486 to the public in early 1989, AST was one of the few PC compatible manufacturers which did not announce a i486 computer in the pipeline contemporaneously. Slowing sales led to crowded warehouses of AST products, leading to strain for AST in the form of storage costs.[6]: 126  To recoup its losses, in April 1989, the company spun off Camintonn, relinquishing control to the division's managers, and in mid-1989, the company sold its Apple-related products to Orange Micro.[9]: 41 [35] In 1989, AST was ranked as the ninth largest personal computer manufacturer in the United States with a 2% market share, despite being a relatively late entry in the market.[2] A 1990 American Institute of Certified Public Accountants member survey found that 2% of respondents used AST computers, among the many vendors with single-digit shares of the market after IBM and Compaq.[36]

Turnaround (1989–1994)

[edit]

In 1989, AST introduced Cupid, the trademark for a method of making computer systems forward-compatible with upgraded microprocessors and memory chips. This works by having the motherboard be a passive backplane, with no processor and memory which are instead located on a Cupid expansion card, to be plugged into the backplane and replaced as upgrades became available.[37] Although the expectation for all AST customers to upgrade their purchases this way was unrealistic, Cupid technology enabled a successful marketing scheme, by eliminating customer hesitation over immediate obsolescence. Such concerns were prevalent due to the rapid increases in computing power in the early 1990s.[9]: 42  Using Cupid, AST marketed systems based on the latest and fastest clock-speed revisions of Intel's processors almost immediately—simply by replacing one card in the system—making it possible for AST to price its computers between ten and sixty percent cheaper than competitors.[6]: 126 

In April 1990, the company announced the Dual SX/16, a clone of NEC's PC-9801 computer, to be sold exclusively in Japan where the PC-9800 series had flourished.[38] This venture into Japan posed a risk for AST, as the company lacked a large dealer network in the country, but the company's executives, especially Qureshey, were persuaded by the vastness of Japan's business computer market during this time—second only to the United States in size. As it had done in the United States, AST offered the Dual SX/16 with more features and lower prices than domestic competitors. Unlike in the United States, AST developed bespoke brand names for its Japanese computers, in an attempt to fit in the market; the company was also negotiating with Sharp Corporation to market variants of the Dual SX/16 under the Sharp brand.[39] Likewise, AST began marketing computers in former Soviet bloc countries and in India.[39][40] This push toward foreign markets was another attempt by AST to recover from lost market share in the United States in the early 1990s;[9]: 42–43  by 1995 its share was larger outside the country than in the domestic market.[12]

These developments and more led to a quick financial recovery for AST, and in 1990 the company's stock price had risen roughly 260 percent in concert with its sales and earnings growth. Firmly entrenched as the third-largest PC manufacturer, sales reached nearly $1 billion by the end of 1990.[9]: 43  AST was sourced as original equipment manufacturer (OEM) by other computer companies such as Unisys, Tandem Computers, Digital Equipment Corporation, Texas Instruments.[41]

AST were also highly successful in the People's Republic of China where it dominated the PC market in the first half of the 1990s. The company announced its first Chinese factory in 1993.[12][42][43]

Success continued in 1991. Industry leader Compaq and several other competitors announced steep price cuts in direct response to AST early in the year. A few months later, when Intel released the low-cost 80486SX desktop processor, AST announced a i486SX-based computer system the next day.[6]: 126  That year, AST beat Compaq for a contract to supply over 1,600 laptops to AT&T's sales department during a time when AT&T was selling its own laptops and other computer systems.[10] By early 1991, 65 percent of the computer systems supplied to Fortune 500 companies had AST as OEM.[9]: 43  AST engineers Tom Ludwig and Tom Craft had secretly designed the company's first portable computer against their managers' wishes; it provided about 30% of the company's $688.5 million in revenue in fiscal year 1991.[44]

PowerExec 4/33SL ColorPlus, a laptop released by AST in 1993

As with many other computer companies, AST struggled in 1992 due to a fierce price war started by Compaq.[45] Ludwig and Craft left for another company.[44] During plans to restructure AST yet again to minimize operating costs, Yuen left the company early that year, leaving Qureshey as the sole remaining co-founder.[46][44] Qureshey and his executive board set out to maintain AST's third-place status and keep on top of developments in the computer industry.[9]: 43  In November 1992, the company introduced the PowerExec 4/25SL Color Plus, one of the first laptops with the portable-specific 80486SL processor. It was released shortly after Compaq released the LTE Lite 4/25C, which is the first laptop with an i486SL.[47] In 1993, AST announced a joint venture with Grid Systems, a subsidiary of Tandy Corporation, to develop a pen-tablet computer called the PenExec, which has a cordless stylus.[48]

Yuen (but not Wong), Ludwig and Craft, and numerous others who had become top executives at other companies were among 300 AST alumni who attended an Irvine reunion in December 1992.[49] Fiscal 1993 revenue of $1.4 billion was the first billion-dollar year. In mid-1993, AST acquired both Grid Systems and Tandy's computer division for $105 million. The company incurred a loss with this purchase but gained four PC manufacturing plants—one in Scotland, the rest in Texas—and a litany of patents and software copyrights that had been registered to Tandy Corporation. The Scotland plant was later shut down, to afford building another factory in Ireland, and by 1995 only one of the Texas plants remained operational.[12] In January 1994, AST announced its agreement to sell PenRight and FieldNet—pen-based software development tools included in AST's previous acquisition of Grid and Tandy—to the Telxon Corporation.[50] The deal was finalized in April that year.[51] The company reported fiscal 1994 revenue of $2.4 billion and $53.5 million in profit.[12]

Decline and sale (1994–2001)

[edit]
Later logo of the company, as AST Computer
Later logo of the company, as AST Computer

By the mid-1990s, AST had severe problems in the highly competitive PC market. According to The New York Times, AST's prospect shrunk due to the strategy of offering premium models in an increasingly competitive personal computer market, while Compaq and other top manufacturers slashed prices in direct competition with the cheapest clones.[52] Samsung paid $378 million for 46% of AST in 1995, providing badly needed funding. Sales grew slightly in fiscal year 1995 but the company lost $99.3 million. In August Tandy, which provided 18% of revenue, said that it would sell IBM computers in its Radio Shack stores.[12] Revenues for 1996 were $2.1 billion, down from 1995 revenues of over $2.3 billion.[53]

In 1997, AST Research was wholly acquired by Samsung.[54] At the time, Samsung owned 46 percent of AST and had offered to buy the remaining common shares.[55] Prior to this move, Samsung had already owned a substantial stake and provided considerable financial support to keep AST going. By December, the number of employees was down to 1,900. In 1999, Samsung was forced to close the California-based computer maker after a string of losses and a mass defection of research talent.[53][55][56][57] Samsung had invested US$1 billion in the company.[citation needed]

The AST trademark was sold to Beny Alagem, co-founder of Packard Bell, on January 10, 1999; Alagem also gained an exclusive license to the company's intellectual property. The deal was estimated at around $200 million in value according to one person familiar with its details.[58][59] Alagem additionally invested $12.5 million[60] into the formation of AST Computers, a separate, "Internet-driven" joint venture based in Los Angeles, with Alagem holding a 65 percent stake and Samsung holding a 35 percent stake;[61][62] however, the venture failed to gain traction as the computer market slowed in late 2000, becoming moribund by 2004.[63] Meanwhile, Samsung restructured the original AST as ARI Service[64] to support its existing products until it was dissolved on February 28, 2001.[65][66]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

AST Research

View on Grokipedia
from Grokipedia
AST Research, Inc. was an American manufacturer founded in 1980 in , by Albert Wong, Safi Qureshey, and Thomas Yuen, with the company name derived from the founders' initials. Initially established with a modest $2,000 investment, the company began by producing add-ons, expansion cards, and peripherals compatible with PCs, such as the SixPakPlus multi-function card introduced in 1983. The firm rapidly expanded into full personal computer production starting in 1986 with IBM-compatible systems like the Premium/286, achieving significant growth to become the third-largest U.S. PC manufacturer by 1988. By fiscal 1992, annual sales had reached $944.1 million with a workforce of 4,000 employees. AST innovated in areas such as easy-upgradability with its "Cupid architecture" in 1989 and entered the portable computing market with notebook models like the PowerExec series in 1992 and the pen-based PenExec in 1993. It also pursued international expansion through subsidiaries in Europe, Asia, and elsewhere, and went public in 1984 with an initial offering of 2 million shares. Despite its early successes, AST Research faced challenges in the competitive PC market, including quarterly losses starting in 1989, layoffs, and a lawsuit from in 1987 over trademark infringement related to the PS/2 branding. The company acquired Tandy's unit in 1993 to bolster its offerings but struggled with financial declines, leading to its acquisition by in 1997 for an undisclosed amount. Following the acquisition, AST's operations were integrated into , and the brand eventually faded from the market, though elements of its legacy persisted through subsequent asset sales.

Foundation and Early Development (1980–1985)

Company Founding

AST Research was founded on July 25, 1980, in , by Albert Wong, Safi Qureshey, and Thomas C. K. Yuen. The company name was derived from the initials of the founders' first names: A for Albert, S for Safi, and T for Thomas. Prior to formal incorporation, the three engineers had begun collaborating as computer consultants in 1979 while holding full-time jobs. Thomas C. K. Yuen, who initiated the venture, had previously met Qureshey at Computer Automation, Inc., and was longtime friends with Wong from their time at . They initially operated under the name AST Associates, pooling personal resources to support their consulting efforts before incorporating as AST Research, Inc., in July 1980. From the outset, AST Research focused on designing and manufacturing add-on hardware for microcomputers, beginning with a team consisting solely of the three founders and funded by limited personal savings of around $2,000. The company's early headquarters were located in . The founders strategically targeted the emerging PC market, recognizing the potential of its to enable third-party expansions and upgrades. This foundational approach positioned the company for its initial product developments in 1981.

Initial Products and Market Entry

AST Research launched its first product, a memory expansion circuit board designed for the Personal Computer (PC), by the end of 1981. This board addressed the limitations of the PC's base configuration, allowing users to add additional RAM to enhance performance for business applications. The product was developed in response to the PC's release in August 1981, capitalizing on the growing demand for affordable upgrades in the emerging personal computing market. Building on this initial offering, AST expanded its lineup of add-on products compatible with the PC standard, including multifunction boards such as the SixPakPlus introduced in 1983. The SixPakPlus combined memory expansion up to 384 KB with (I/O) features like serial and parallel ports, a , and a , enabling enhanced connectivity and multitasking capabilities. The company also developed other early peripherals, such as interface cards for communications, including support for modems through serial ports, targeting users needing expanded I/O functionality for data transfer and peripheral integration. These products were engineered to seamlessly integrate with the PC's , providing cost-effective solutions for businesses upgrading their systems. AST's market entry strategy focused on businesses seeking reliable, low-cost enhancements for the PC, emphasizing compatibility and ease of installation to appeal to corporate IT departments and small enterprises. Initial sales were channeled through a network of distributors, which facilitated broad reach without the need for a direct sales force, allowing AST to scale quickly amid the rapid adoption of the PC. In 1983, the company secured a key marketing agreement with to resell its products, further solidifying its position in the add-ons market. This distributor-driven approach enabled AST to build a strong presence in and laid the groundwork for international expansion. To fuel growth, AST went public in June 1984, offering 2 million shares on the exchange under the ticker symbol ASTA. The raised capital for expanded manufacturing capabilities, enabling the company to meet surging demand for PC upgrades. Revenue grew significantly during this period, from $13 million in 1983 to $138.6 million by 1985, propelled by the widespread adoption of the PC in business environments and AST's reputation for high-quality, innovative add-ons.

Expansion into Systems and Diversification (1986–1990)

PC Compatible Computers

In 1986, AST Research marked a significant strategic shift by entering the market for full PC-compatible systems, launching its first IBM PC/AT clone, the Premium/286, in January of the following year. This desktop computer featured the processor and was designed to offer enhanced performance for applications while undercutting 's , with base models starting at $1,995. The introduction of the Premium/286 was enabled by AST's early success with expansion cards, which had built technical expertise in PC architecture. Building on this momentum, AST released the Premium/386 in October 1987, incorporating the more powerful 80386 processor at speeds up to 20 MHz, along with advanced features like compatibility with IBM's elements. This system targeted corporate users seeking multitasking capabilities and positioned AST as a competitive alternative to in the growing 386-based PC segment. By 1989, the Premium series and subsequent models had propelled AST to become one of the top IBM-compatible vendors, capturing notable in PCs through reliable and cost efficiency. AST's pivot to systems integration facilitated international expansion during this period, with early efforts in including the 1986 acquisition of France's National System Company to form AST France and the establishment of subsidiaries in the UK and by 1987. These moves enabled the sale of localized PC clones tailored to regional standards, contributing to overseas sales reaching 25% of by 1987. By 1989, PC systems had become the core of AST's operations, comprising the majority of its revenue as add-on products declined in prominence.

Peripherals for Apple and Other Platforms

In the mid-1980s, AST Research began diversifying beyond IBM PC compatibles by developing peripherals for Apple's ecosystem, leveraging its expertise in memory expansion to support the Apple II series. The company's entry into this market occurred around 1985–1986, highlighted by the introduction of the MegaRamPlus, a RAM expansion card that provided up to 1 MB of additional memory for the Apple II, II Plus, and IIe models, along with features like MegaRamCache for disk caching and compatibility with ProDOS and software. This product addressed the memory limitations of Apple's aging platform, enabling faster performance for applications and gaming. Building on this momentum, AST expanded its offerings for the newly released in 1986, targeting the system's enhanced capabilities with specialized cards. The SprintDisk, a memory expansion card functioning as a RAM disk, delivered 1 MB of high-speed storage configurable as virtual disks, priced at approximately $295 and compatible with the IIGS's I/O slots. Complementing this were enhanced I/O expansion cards that improved connectivity and data transfer rates, such as serial and parallel port enhancements, allowing users to integrate peripherals like printers and modems more efficiently with the IIGS's 16-bit architecture. These products helped AST capture a niche in the educational and hobbyist markets where the remained dominant. By 1989, AST ventured further into Apple's Macintosh line with the Mac286, an compatibility card based on the processor, to run PC software natively within the Macintosh environment. Targeted at the Macintosh SE and II series via the Processor Direct Slot, the Mac286 bridged the software gap between Mac OS and applications, supporting up to 4 MB of RAM and enabling seamless between platforms at a cost of $1,499. This card appealed to business users needing cross-platform versatility without dual-boot setups. However, AST divested its Macintosh product line later that year to Orange Micro, refocusing on core PC markets. Success in PC add-ons provided the financial resources for these multi-platform initiatives. Overall, Apple peripherals positioned AST as a versatile vendor, contributing significantly to revenues—doubling to $138.6 million by 1985 through innovative enhancements—and bolstering profitability amid intensifying PC competition.

Growth and Peak Performance (1991–1994)

Acquisitions and Strategic Moves

In , AST Research made a strategic entry into the Japanese market by introducing the Dual SX/16, a clone compatible with NEC's dominant PC-9801 platform, marking the first such effort by an American vendor and allowing access to thousands of Japan-specific software packages. This move capitalized on AST's prior successes with PC clones in the U.S., enabling bolder international expansions. To stay ahead in processor technology, AST formed key partnerships with , becoming an of the in 1989 with upgraded PC systems and preparing slots for the forthcoming chips by early 1993. These collaborations positioned AST to integrate cutting-edge components rapidly into its product lines, enhancing performance for enterprise and consumer markets. AST expanded its manufacturing capabilities to support growing demand, opening additional facilities including a new plant in , and establishing an overseas operation in Limerick, , by late 1993 to produce desktop computers for European, African, and Middle Eastern markets. This infrastructure buildup, which created over 350 jobs in alone, reflected AST's focus on scalable global production. A pivotal acquisition occurred in 1993 when AST purchased Tandy Corporation's computer manufacturing operations, including the GRiD Systems division and plants in and , for approximately $105 million, securing rights to Tandy's PC designs and facilitating integration into RadioShack's retail channels. This deal more than doubled AST's manufacturing capacity and expanded its distribution network. By 1993, these strategic initiatives had driven AST's employee base to over 4,000, enabling robust operations across design, production, and international sales.

Revenue Milestones and Innovations

During its growth phase in the early 1990s, AST Research reached its financial pinnacle in fiscal , generating $2.4 billion in and establishing itself as one of the top five manufacturers in the United States. This milestone reflected the company's successful expansion into full PC systems and its strategic focus on high-volume production. By emphasizing value-priced business-oriented computers, AST captured approximately 4% of the U.S. PC market that year, benefiting from strong demand in corporate and segments. The acquisition of Tandy Corporation's computer division in 1993 significantly enhanced AST's distribution network, contributing to its revenue surge by integrating established retail channels. Complementing this financial success, AST's workforce expanded to a peak of 6,000 employees worldwide by 1995, underscoring the operational scale required to support global manufacturing and sales efforts. These resources enabled substantial investments in , with thousands dedicated to innovating hardware solutions tailored for business users. A key highlight of AST's technological advancements during 1993–1994 was the launch of its Pentium-based Bravo series systems, which incorporated Intel's new processor for superior performance in multitasking environments. These systems featured PCI-based accelerators for enhanced visual processing and integrated networking options, allowing seamless connectivity in office settings and setting AST apart in the value segment. Such innovations stemmed from close collaboration with and internal R&D efforts to optimize proprietary system designs, including faster initialization processes that improved overall user efficiency.

Decline, Acquisition, and Closure (1995–2001)

Financial Challenges and Samsung Involvement

In the mid-1990s, AST Research encountered significant financial difficulties as the industry faced intensifying competition from direct sellers like Computer Corporation and established players such as Computer Corporation, alongside rising pressure from low-cost Asian manufacturers. This competition manifested in aggressive price wars that squeezed margins and accelerated erosion for AST, with unit shipments declining by 26% that year while the overall industry grew by more than 20%. The company's slower pivot toward consumer-oriented desktop and notebook trends, compared to rivals emphasizing direct sales and customization, further compounded these challenges, leading to operational strains and the onset of quarterly losses starting in late 1994. To address its mounting financial pressures, AST secured a major investment from in 1995. Samsung acquired an initial 40.25% stake in the company for $378 million in of that year, providing a vital capital infusion to stabilize operations and fund ongoing development amid persistent losses. This partnership also facilitated technology sharing, including joint product development, cross-licensing of patents, and access to Samsung's expertise, helping AST integrate advanced components like chips into its systems. By late 1995, Samsung's stake had increased to approximately 46%, deepening the without granting immediate operational control. In response to the revenue stagnation—fiscal 1995 sales reached $2.47 billion, a modest increase from the 1994 peak but insufficient to offset rising costs—AST pursued aggressive cost-cutting measures. These included workforce reductions, with approximately 1,000 employees laid off in 1997 as part of broader restructuring to improve efficiency and return to profitability. The collaboration with Samsung also prompted a strategic shift toward original equipment manufacturer (OEM) production, where AST increasingly manufactured PCs and components for Samsung's global lineup under the AST brand, leveraging its U.S. facilities to support the Korean firm's expansion into Western markets.

Final Years and Dissolution

In 1997, completed its acquisition of the remaining 51% stake in AST Research for approximately $170 million, achieving full ownership following its initial 40% investment in 1995 and integrating AST into its global electronics division. Under 's control, AST's operations were restructured with a focus on cost reduction, including workforce cuts of about 25% to streamline manufacturing and sales. The AST brand persisted under Samsung until 1999, marked by limited that emphasized budget personal computers, often consisting of rebranded hardware manufactured overseas to target value-conscious markets. During this period, invested significantly in AST's facilities, including plans for up to $2 billion to bolster production capacity and expand into higher-volume PC segments. In 1999, facing ongoing losses, Samsung shuttered AST's U.S. operations and sold the brand name, patents, and related technology to —former chairman of —for $12.5 million, enabling a brief revival attempt under a new entity called AST Computers LLC, which ultimately failed due to market challenges. retained a minority stake in the venture but ceased active involvement. AST's residual service arm, renamed ARI Service to handle legacy product support, underwent asset before its official dissolution on February 28, 2001. In the aftermath, AST's manufacturing knowledge and processes were absorbed into Samsung's broader initiatives, supporting its expansion in global electronics production.

Products and Technological Contributions

Expansion Cards and Add-ons

AST Research's flagship product in the expansion card market was the RAMpage memory card, introduced by the end of 1981, which allowed users to expand the PC's memory up to the 640 KB conventional limit, establishing early standards for PC upgrades by providing reliable solutions compatible with LIM specifications. This card played a pivotal role in the company's initial revenue growth, with sales doubling monthly during 1981–1982 as demand for memory enhancements surged among PC users. Building on this success, AST introduced other key add-ons, including the SixPakPlus multifunction card in 1983, which integrated serial and parallel ports alongside memory expansion for improved I/O capabilities in PCs and compatibles. By 1985, the company expanded into graphics accelerators with adaptor boards offering enhanced video facilities, such as the AST-3G series supporting resolutions up to 640x350 in 16 colors, catering to the growing need for better display performance in business applications. These products featured proprietary software drivers, like the Rampage Expanded Memory Manager (REMM), ensuring seamless integration with DOS and applications by optimizing access and compatibility with standards such as Enhanced EMS (EEMS). Later iterations, including the Rampage 286 from the mid-1980s, supported up to 2 MB of expanded , with configurations allowing total system RAM beyond 1 MB through multiple cards, though practical limits varied by host system . The add-on line drove substantial market dominance for AST, generating $13 million in sales by fiscal 1983 and contributing to total revenues of $138.6 million by 1985, while influencing third-party standards through widespread adoption in the PC . As the industry evolved, AST shifted toward PCI-based expansion cards in the to support faster buses in 486 and Pentium-era systems, though this segment declined to just 7% of business by 1991 amid the rise of integrated PC manufacturing. In 1989, AST introduced the architecture, a technological innovation that enabled easy upgradability in its PC systems by isolating the and memory on a replaceable board, allowing users to upgrade components without replacing the entire .

Full PC Systems and Clones

AST Research began producing full PC systems in the mid-1980s, initially focusing on high-performance PC compatibles under the Premium series, which spanned 286, 386, and 486 processor generations from 1986 to 1993. The Premium/286, introduced in 1986, featured configurations with up to 4 MB of RAM, 80 MB hard drives, and support for high-resolution graphics via integrated AST video options, emphasizing expandability through multiple ISA expansion slots and upgradable chassis designs. Subsequent models like the Premium/386 (1988) and Premium/486 (1989) incorporated faster , such as the 386DX at 16-33 MHz and later 486DX at 25-66 MHz, along with bundled and early Windows software, positioning these systems as reliable workstations for business applications. These machines utilized high-speed local buses for peripherals, allowing seamless integration of AST's own expansion cards, and were engineered for corporate environments requiring robust multitasking and networking capabilities. In 1994, AST launched the Bravo series with 486 processors such as the Bravo LC 4/66d; Pentium models like the Bravo MS followed in 1995 with 60-90 MHz processors, up to 32 MB RAM, and SCSI or IDE storage options starting at 540 MB hard drives. The Bravo line emphasized multimedia readiness, including sound cards and CD-ROM drives, while maintaining upgradable motherboards with PCI slots for future-proofing, and came preloaded with or DOS 6.0. Priced approximately 10-20% below comparable offerings from and , these systems appealed to cost-conscious enterprises seeking value without sacrificing performance. By the mid-1990s, AST's full systems achieved peak annual shipments of approximately 722,000 units in 1994, solidifying their role in corporate and educational sectors where reliability and affordability were paramount. A notable foray into clones occurred in 1990 with the AST Dual SX/16, the first American-made compatible for Japan's dominant NEC PC-9801 platform, featuring a 16 MHz 386SX processor, Japanese-localized support, and compatibility with thousands of NEC-specific software titles while retaining PC switchability. Following the 1993 acquisition of Tandy Corporation's computer manufacturing operations for $105 million, AST integrated Tandy's PC-compatible product lines, enhancing offerings for education and users accustomed to Tandy's ecosystem. These integrated offerings maintained upgradable designs and bundled software, targeting education and users. As competition intensified, AST shifted to budget-oriented full systems with the Advantage series in 1996, featuring Pentium or equivalent processors at 100-166 MHz, 16-32 MB RAM, and 1-2 GB hard drives in compact, low-cost aimed at entry-level consumers and institutions. These models prioritized affordability and ease of use, with preinstalled and minimalistic expansion options via PCI buses, reflecting AST's adaptation to price wars in the consumer segment. After Samsung's full acquisition in 1997, AST's systems incorporated Asian manufacturing efficiencies, leveraging Samsung's for cost reductions in components like motherboards and drives, which enabled continued production of value-driven PCs until the brand's phase-out around 2001.

References

  1. https://www.computinghistory.org.uk/det/8201/AST-Research/
  2. https://www.company-histories.com/AST-Research-Inc-Company-History.html
  3. https://www.computerhope.com/comp/ast.htm
  4. https://www.latimes.com/archives/la-xpm-1993-07-02-fi-9351-story.html
  5. https://www.crunchbase.com/organization/ast-research
  6. https://www.latimes.com/archives/la-xpm-1997-04-15-fi-49002-story.html
  7. https://dfarq.homeip.net/ast-research-computers/
  8. https://www.macdat.net/laptops/ast_home.html
  9. https://www.encyclopedia.com/books/politics-and-business-magazines/ast-research-inc
  10. https://www.latimes.com/archives/la-xpm-1993-10-03-fi-41891-story.html
  11. https://www.fundinguniverse.com/company-histories/ast-research-inc-history/
  12. http://ftpmirror.your.org/pub/misc/bitsavers/pdf/datapro/protocol_conversion_systems/C23-069_AST_Research.pdf
  13. https://www.latimes.com/archives/la-xpm-1987-07-28-fi-5906-story.html
  14. https://classictech.wordpress.com/computer-companies/ast-research-inc-irvine-calif/
  15. https://www.latimes.com/archives/la-xpm-1987-10-20-fi-14601-story.html
  16. https://www.techmonitor.ai/analysis/ast_research_introduces_the_ast_premium386/
  17. https://www.latimes.com/archives/la-xpm-1987-03-02-fi-4154-story.html
  18. https://www.latimes.com/archives/la-xpm-1990-04-11-fi-1113-story.html
  19. https://www.nytimes.com/1990/04/11/business/ast-offers-pc-in-japan.html
  20. https://www.latimes.com/archives/la-xpm-1989-07-04-fi-3413-story.html
  21. https://www.latimes.com/archives/la-xpm-1993-02-27-fi-636-story.html
  22. https://halfhill.com/byte/1993-5_intel-launches.html
  23. https://www.latimes.com/archives/la-xpm-1990-04-22-fi-488-story.html
  24. https://www.chicagotribune.com/1993/11/11/deal-in-ireland-ast-research-inc-said/
  25. https://www.latimes.com/archives/la-xpm-1993-05-27-mn-40484-story.html
  26. https://www.nytimes.com/1993/07/15/business/company-news-ast-research-completes-acquisition-of-tandy-divisions.html
  27. https://www.upi.com/Archives/1993/05/26/AST-to-acquire-Tandy-PC-manufacturing-operations/9558738388800/
  28. https://www.latimes.com/archives/la-xpm-1994-06-28-fi-9533-story.html
  29. https://www.bloomberg.com/news/articles/1994-08-28/can-this-chip-beat-pentium
  30. https://www.zdnet.com/article/ast-lowers-the-ax-again/
  31. https://www.latimes.com/archives/la-xpm-1994-03-09-fi-32026-story.html
  32. https://www.latimes.com/archives/la-xpm-1995-02-28-fi-36981-story.html
  33. https://www.nytimes.com/1993/05/17/business/pentium-chips-to-debut-in-computer-products.html
  34. https://macdat.net/files/pdf/ASTProductCatalog1995.pdf
  35. https://www.latimes.com/archives/la-xpm-1996-01-31-fi-30769-story.html
  36. https://www.nytimes.com/1995/08/17/business/compaq-cuts-its-pc-prices-in-effort-to-widen-its-lead.html
  37. https://www.nytimes.com/1997/01/31/business/samsung-electronics-plans-to-buy-the-rest-of-ast-research.html
  38. https://www.nytimes.com/1995/02/28/business/company-news-samsung-buys-40-of-ast-research-for-378-million.html
  39. https://brie.berkeley.edu/sites/default/files/wp106.pdf
  40. https://www.nytimes.com/1995/08/04/business/ast-research-inc-astannm-reports-earnings-for-4th-qtr-to-jul-1.html
  41. https://www.latimes.com/archives/la-xpm-1997-dec-04-fi-60659-story.html
  42. https://www.wsj.com/articles/SB86162685864830500
  43. https://www.nytimes.com/1997/04/16/business/higher-price-cements-samsung-s-deal-with-ast.html
  44. https://www.nytimes.com/1997/04/22/business/ast-being-bought-by-samsung-will-eliminate-quarter-of-jobs.html
  45. https://www.scmp.com/article/210488/samsung-plans-us2b-investment-drive-ast-big-league
  46. https://www.wsj.com/articles/SB916013568919015000
  47. https://www.latimes.com/archives/la-xpm-1999-jan-13-fi-63099-story.html
  48. https://www.wikiwand.com/en/articles/AST_Research
  49. https://dosdays.co.uk/topics/Manufacturers/ast.php
  50. https://retrocmp.de/hardware/rampage-286/ast-rampage-286_1986.pdf
  51. https://www.latimes.com/archives/la-xpm-1995-10-10-fi-55574-story.html
  52. https://www.washingtonpost.com/archive/business/1990/04/14/ast-research-targets-japanese-market/0949e992-e0f1-4fa4-96a1-3aceaaaacb0f/
  53. https://www.nytimes.com/1993/09/16/business/company-news-ast-to-pay-reduced-price-for-tandy-pc-operations.html
Add your contribution
Related Hubs
User Avatar
No comments yet.