Tensilica is a fast growing, venture-backed company focused on providing the ultimate in application-specific microprocessor solutions for use in today's high volume embedded systems. Tensilica was incorporated in July of 1997 by key managers and executives of four key technical disciplines: microprocessor architecture, ASIC and VLSI design, advanced software development, and Electronic Design Automation (EDA). The goal of the group was to create the world's first truly configurable and extensible microprocessor architecture and support environment, that could enable embedded system designers to build better, more highly integrated products, in less time.

The Company quickly built a strong management team and an even stronger technical team with the support and backing of industry veterans and technical advisors. And in mid-1998, after an initial seed round of funding, the Company partnered with three leading venture capital firms: Oak Investment Partners, Worldview Technology Partners, and Foundation Capital. In July of 1999, the original investors and VCs were joined by Cisco Systems, Inc., Matsushita Electric Industrial Company Ltd. and Altera Corporation in a $20 million third round of funding bringing the total capitalization to $33.0 million.

Tensilica began working with early customers in the last half of 1998 and introduced mass production capability of its flagship Xtensa product line in February of 1999.