Teravicta Technologies Inc. is an RF MEMS switch startup that built on MEMS process technology developed within the Microelectronics and Computer Technology Corp. (MCC) consortium. But CEO Bob Miracky and staff ran into static friction issues that made it difficult to reach their 6-GHz switching target for comms and military markets. As a result, the staff has been pared to a core engineering group to prepare the intellectual property for sale.

Extreme Devices Inc., which once had about 70 people on its payroll, was targeting the CRT market. Extreme used synthetic diamond substrates to create cold emission devices that would replace the bulkier thermionic devices now used in the monitor industry.

Extreme also ran into difficulties getting its technology to work completely. The approach offered certain advantages, including an "instant on" capability. But for the mature computer monitor market, cost is king, and cold emission was a new approach that, initially at least, would have been more expensive than today's electron guns.

Cold emission still has potential in a variety of components, including microwave devices. For large-screen TVs, cold emission-based electron guns avoid the beam spot degradation from which conventional thermionic guns suffer as they scale to large screens. However, Extreme Devices spent its cash on its initial foray into monitors. The board decided the company lacked the wherewhithal, either technically or financially, to switch its main focus to televisions.

With flat-panel TVs competing so well, you can't blame the board for deciding recently to auction off Extreme's prototyping facility.

The lesson learned, according to one former employee, is that startups rarely can undercut costs for a mature technology.

Not all is bleak among startups in Austin. Tipping Point Technologies Inc., which develops hardware-based products that protect IT managers from denial-of-service attacks and other security invasions, is thriving. Also, some ex-Dell executives is gaining traction in health care and other markets at Motion Computing Inc., which develops tablet computers with wireless connectivity.

David Lammers covers SoC process equipment. Contact him at dlammers@cmp.com.