30-Second Overview: In 1987, seven engineers founded Realtek Semiconductor in the Hsinchu Science Park with NT$2 million. Using a crab as their logo, they launched Taiwan's first independently developed network chip in 1991. With consolidated revenue of approximately NT$113.4 billion in 2024, it is Taiwan's third-largest IC design company; a "Realtek crab" may be hidden inside almost every computer in the world.
If you have ever used a computer, you have likely interacted with a crab. This crab logo belongs to Realtek Semiconductor, Taiwan's third-largest IC design company. Its main products include network controllers, audio chips, and display control chips, which are widely integrated into terminal devices such as motherboards, routers, and televisions worldwide.
The NT$2 Million Bet of the Seven Musketeers
In 1987, Taiwan had just lifted martial law, the economy was taking off, and the Hsinchu Science Park had only been established for a few years. Seven engineers working at foreign companies gathered to discuss a bold idea: Could we design our own chips?
At that time, Taiwan's tech industry was still in the stage of contract manufacturing and assembly; designing one's own chips sounded like a fantasy. However, these seven engineers believed that Taiwanese engineers possessed the capability.
They pooled NT$2 million and founded Realtek Semiconductor on October 21, 1987. 1 The company's English name is Realtek.
There was an interesting reason for choosing a crab as their logo: although crabs are small, they are highly adaptable and can survive in various environments. This was exactly what they hoped for their company—to find its own way to survive in the fiercely competitive tech industry.
The Birth of the First Crab
The early days of the startup were not smooth. The seven engineers were crowded into a small office with no customers and no products, relying on their own capital to keep operations running.
A turning point came in 1991. At that time, Taiwan's computer industry was developing rapidly, but network chips had to be purchased from American or Japanese vendors, which were not only expensive but also frequently suffered from insufficient technical support.
The Realtek team spotted this opportunity and decided to develop Taiwan's first independently designed Ethernet controller. After two years of R&D, the RTL8002 was born—this was Taiwan's first network chip with entirely independent intellectual property rights.
The significance of this chip went beyond the technology itself. It proved that Taiwanese engineers had the ability to design world-class products from scratch and marked a crucial step for Taiwan's tech industry moving from "contract manufacturing" toward "independent R&D."
Memories of the "Crab Card" Era
In the mid-1990s, personal computers began to become widespread, and the internet gradually entered Taiwanese households. To get a computer online back then, one needed to install a "network card"—usually a green circuit board with various chips and connectors on it.
Because Realtek's logo was a crab, Taiwanese PC enthusiasts nicknamed their network cards "Crab Cards" (pángxiè kǎ). This nickname later became a symbol of nostalgia, representing the early years of Taiwan's internet development.
More importantly, Realtek drove down the price of network cards from thousands of New Taiwan dollars (from American vendors) to just hundreds, making computers and the internet affordable for more Taiwanese people. "Technology democratization" subsequently became a consistent positioning for Taiwan's IC design industry.
Crossing Over from Network Cards to Audio Cards
After successfully breaking into the network card market, Realtek did not settle for the status quo. In the late 1990s, they began expanding into the field of audio chips.
This decision might have seemed like a pivot, but it was actually logical. Both network transmission and audio processing involve signal processing technology; the technical foundation Realtek accumulated in network chips could be applied directly to the audio field.
Realtek's audio chips quickly entered the supply chains of major motherboard manufacturers. Major Taiwanese motherboard brands such as ASUS, Gigabyte, and MSI all began integrating Realtek's audio solutions into their products.
By the 2000s, Realtek had become one of the world's major suppliers of PC audio chips. Almost every assembled computer has a Realtek chip running inside.
The Ubiquitous Little Crab
Today, Realtek is no longer the small seven-person company it once was. As of 2024, the company's consolidated revenue reached approximately NT$113.4 billion (a year-on-year increase of 19.1%), with over 6,000 employees, making it Taiwan's third-largest IC design company. 2
Even more impressive is the penetration rate of Realtek products. From home routers to laptops, and from smart TVs to industrial controllers, Realtek chips are almost everywhere. The terminal devices using Realtek chips are spread across the globe, covering multiple markets including home, commercial, and industrial equipment.
This success stems from Realtek's "platform strategy": their core designed technologies can span different product lines. A single signal processing architecture can derive various applications, such as network chips, audio chips, and display control chips.
The New Battlefield of the WiFi Era
In the 2010s, with the proliferation of smartphones and the rise of the Internet of Things (IoT), wireless networking became a new battlefield. Realtek once again demonstrated its adaptability, expanding from wired networks into the wireless domain.
The WiFi chips they developed are widely used in products such as routers, smart home appliances, and industrial equipment. From WiFi 4 and WiFi 5 to WiFi 6, and onto the WiFi 7 solutions introduced in the mid-2020s, Realtek has maintained its market share through every generation of wireless standard transitions. 3
Realtek's stock code is 2379; it was listed on the Taiwan Stock Exchange in 1998. The current Chairman is Chiu Shun-chien (邱順建), and the current General Manager is Yeh Po-jen (葉博任). 4
New Layouts for AI PCs and Automotive Ethernet
Since the 2020s, Realtek has been actively positioning itself in three emerging markets: (1) AI PC — as Microsoft Copilot+ PC specifications become widespread, Realtek's WiFi 7 and high-speed Ethernet chips serve as fundamental connectivity components for AI PC platforms; (2) Automotive Ethernet — autonomous driving and in-vehicle communications require high bandwidth and low latency; Realtek has entered the ADAS supply chain with its 100BASE-T1 / 1000BASE-T1 automotive-grade chips; (3) BIS (Broad IoT Solutions) — an integrated controller chip line targeting applications such as industrial control, smart homes, and energy management, expanding its share in non-PC markets. 3
The RTL8002 launched by Realtek in 1991 was Taiwan's first Ethernet controller with entirely independent intellectual property rights, setting the starting point for the company's network chip technology roadmap. 1
Challenges Under the US-China Tech War
In recent years, as US-China technological competition has intensified, semiconductors have become strategic assets. As a major global supplier of network chips, Realtek also faces new challenges.
On one hand, the Chinese market is extremely important to Realtek, as a large number of routers, TV boxes, and smart appliances use Realtek chips. On the other hand, US export control policies may affect Realtek's sales to specific Chinese customers.
However, Realtek's response strategy remains returning to its original intention: focusing on technological innovation. They believe that by continuously providing the best technical solutions, they can find space to survive within a complex geopolitical environment.
The Crab Kingdom 35 Years Later
From 1987 to 2024, Realtek has traveled a path of 37 years. Some of the original seven musketeers have retired, and some have moved to other companies, but the Crab Kingdom they founded continues to thrive.
Today, Realtek is not just an IC design company, but a technology platform. Their chips allow devices worldwide to connect to the internet, play audio, and display images. While consumers may not know the name Realtek, almost everyone benefits from its technology.
Founded by seven engineers in 1987, 37 years later, Realtek's chips are integrated into hundreds of millions of terminal devices globally, serving as a concrete example of Taiwan's IC design industry moving from the era of contract manufacturing toward independent R&D.
References
Further Reading
- TechNews: Development History of Realtek Semiconductor
- Electronic Times: Taiwan IC Design Industry Report
- Realtek Semiconductor 2024 Annual Report | Realtek — Confirms 2024 full-year consolidated revenue of approximately NT$113.4 billion (up 19.1%); established by 7 founders on October 21, 1987.↩2
- Market Observation Post: Realtek Semiconductor — Basic listing information for 2379 and historical financial reports.↩
- Realtek Official Website Product Lines — Description of WiFi 6/7 chip product lines.↩2
- Taiwan Stock Exchange: 2379 Realtek — Confirms stock code 2379, listed in 1998, Chiu Shun-chien is the current Chairman.↩