30-Second Overview: In 1987, seven engineers founded Realtek Semiconductor with NT$2 million in the Hsinchu Science Park, adopting a crab as their logo. In 1991, they launched Taiwan's first self-developed network chip. In 2024, consolidated revenue reached approximately NT$113.4 billion, making Realtek the third-largest IC design company in Taiwan. There may be a "Realtek crab" hidden inside every computer in the world.
If you have ever used a computer, you have most likely crossed paths with a crab. That crab logo belongs to Realtek Semiconductor, Taiwan's third-largest IC design company. Its main products span network controller chips, audio codec chips, and display controller chips, widely integrated into motherboards, routers, and televisions worldwide.
The Seven Swordsmen's NT$2 Million Bet
In 1987, Taiwan had just lifted martial law, the economy was taking off, and the Hsinchu Science Park had only been established a few years earlier. Seven engineers working at foreign companies gathered together and discussed a bold idea: could we design our own chips?
At the time, Taiwan's technology industry was still in the contract manufacturing and assembly phase. Designing chips in-house sounded like a fantasy. But these seven engineers believed that Taiwanese engineers had the capability.
They pooled together NT$2 million and founded Realtek Semiconductor on October 21, 1987.1 The company's English name is Realtek.
The choice of a crab as the logo had an interesting origin: though small, crabs are highly adaptable and can survive in all kinds of environments. This was exactly their aspiration for the company — to find a way to survive in the fiercely competitive technology industry.
The Birth of the First Crab
The early days of the startup were not smooth. Seven engineers crammed into a small office with no customers and no products yet, sustaining operations on their own funds.
The turning point came in 1991. Taiwan's computer industry was growing rapidly, but network chips all had to be purchased from American or Japanese vendors — not only were they expensive, but technical support was often inadequate.
The Realtek team seized this opportunity and decided to develop Taiwan's first self-designed Ethernet controller. After two years of R&D, the RTL8002 was born — the first network chip with fully independent intellectual property rights designed in Taiwan.
The significance of this chip went beyond the technology itself. It proved that Taiwanese engineers were capable of designing world-class products from scratch, and it marked a critical step for Taiwan's technology industry in moving from "contract manufacturing" to "independent R&D."
Memories of the Crab Card Era
In the mid-1990s, personal computers began to proliferate and the internet gradually entered Taiwanese households. At the time, getting a computer online required installing a "network interface card" — usually a green circuit board studded with various chips and connectors.
Realtek's network cards, bearing the crab logo, were affectionately nicknamed "crab cards" (螃蟹卡) by Taiwanese PC enthusiasts. The term later became a nostalgic symbol, representing the early days of Taiwan's internet development.
More importantly, Realtek drove the price of network cards down from the several-thousand-dollar range set by American vendors to just a few hundred dollars, making computers and internet access affordable for more people in Taiwan. "Technology democratization" later became a consistent positioning of Taiwan's IC design industry.
From Network Cards to Sound Cards: A Crossover
After successfully breaking into the network card market, Realtek did not rest on its laurels. In the late 1990s, they began expanding into the audio codec chip space.
This decision may have seemed like an odd pivot, but it had a logical basis. Both network transmission and audio processing involve signal processing technology, and the technical foundation Realtek had built with network chips could be directly applied to the audio domain.
Realtek's audio codec chips quickly entered the supply chains of major motherboard manufacturers. Leading Taiwanese motherboard makers — ASUS, Gigabyte, and MSI — all began integrating Realtek audio solutions into their products.
By the 2000s, Realtek had become one of the world's primary suppliers of PC audio codec chips. Nearly every assembled computer had a Realtek chip running inside it.
The Ubiquitous Little Crab
Today's Realtek is no longer the seven-person startup of decades past. As of 2024, the company's consolidated revenue stands at approximately NT$113.4 billion (up 19.1% year-over-year), with over 6,000 employees, making it Taiwan's third-largest IC design company.2
But what is even more impressive is the penetration rate of Realtek's products. From home routers to laptops, from smart TVs to industrial controllers, Realtek's chips are virtually everywhere. Realtek's end-device chips span the globe, covering consumer, commercial, and industrial equipment markets.
This success stems from Realtek's "platform strategy": the core technologies they design can span multiple product lines. A single signal processing architecture gives rise to network chips, audio codec chips, display controller chips, and other diverse applications. One core technology can be extended into network chips, audio codec chips, display controller chips, and other products.
The New Battleground of the WiFi Era
In the 2010s, with the proliferation of smartphones and the rise of the Internet of Things, wireless networking became the new battleground. Realtek once again demonstrated its adaptability, crossing over from wired to wireless networking.
The WiFi chips they developed are widely used in routers, smart home appliances, industrial equipment, and other products. From WiFi 4 and WiFi 5 to WiFi 6, and then to the WiFi 7 solutions launched in the mid-2020s, Realtek has maintained its market share through every generational transition of wireless standards.3
Realtek's stock ticker is 2379. It was listed on the Taiwan Stock Exchange in 1998. The current chairman is Chiu Shun-chien and the current general manager is Yeh Po-jen.4
New Layouts: AI PC and Automotive Ethernet
Since the 2020s, Realtek has been actively positioning itself in three emerging markets: (1) AI PC — as Microsoft's Copilot+ PC specifications become widespread, Realtek's Wi-Fi 7 and high-speed Ethernet chips have become foundational networking components for AI PC platforms; (2) Automotive Ethernet — autonomous driving and in-vehicle communications require high-bandwidth, low-latency in-car networks, and Realtek has entered the ADAS supply chain with automotive-grade 100BASE-T1 / 1000BASE-T1 chips; (3) BIS (Broad IoT Solutions) — integrated controller chip lines targeting industrial control, smart home, and energy management applications, expanding Realtek's share of non-PC markets.3
The RTL8002, launched by Realtek in 1991, was Taiwan's first fully self-developed Ethernet controller with independent intellectual property rights, establishing the starting point for the company's network chip technology roadmap.1
Challenges Amid the U.S.-China Tech War
In recent years, U.S.-China technology competition has intensified, and semiconductors have become strategic commodities. As a major global supplier of network chips, Realtek faces new challenges.
On one hand, the Chinese market is very important to Realtek — a vast number of routers, TV boxes, and smart home appliances use Realtek's chips. On the other hand, U.S. export control policies could affect Realtek's sales to certain Chinese customers.
But Realtek's response strategy remains true to its original spirit: focus on technological innovation. They believe that as long as they continue to deliver the best technological solutions, they will find room to survive in a complex geopolitical environment.
The Crab Kingdom, 35 Years On
From 1987 to 2024, Realtek has journeyed for 37 years. Some of the original seven swordsmen have retired, others have moved on to different companies, but the crab kingdom they founded continues to thrive.
Today's Realtek is not just a chip design company — it is a technology platform. Their chips enable devices around the world to connect to networks, play audio, and display video. Consumers may not know the name Realtek, but nearly everyone has benefited from Realtek's technology.
Founded by seven engineers in 1987, 37 years later Realtek's chips have been integrated into hundreds of millions of end devices worldwide — one of the concrete examples of Taiwan's IC design industry transitioning from the contract manufacturing era to an independent R&D path.
References
Further Reading
- Realtek Semiconductor 2024 Annual Report | Realtek — Confirms 2024 full-year consolidated revenue of approximately NT$113.4 billion (up 19.1% YoY); 7 co-founders established the company on October 21, 1987.↩
- Market Observation Post System: Realtek Semiconductor — Ticker 2379 listing information, historical financial reports.↩
- Realtek Official Website Product Lines — WiFi 6/7 chip product line descriptions.↩
- Taiwan Stock Exchange: 2379 Realtek — Confirms stock ticker 2379, listed in 1998, Chiu Shun-chien as current chairman.↩