Take Intel without the manufacturing process. Partner it with a number of leading semiconductor chip manufacturing companies. Generate, on average, 25 patent-protected designs each year, and you have the formula for a lucrative semiconductor design company without the costly manufacturing process.

This is the composition of one of the Republic's most successful, and extremely low-profile companies, Silicon Systems Limited (SSL). Over the past six years this private firm has recorded growth in excess of 50 per cent annually, and established itself at the leading edge of silicon chip design. By eliminating the expense of physically processing its chip designs, it concentrates on developing the latest technology once the last has been patented and distributed to clients and partners for manufacture.

One of the world's biggest investment houses, Goldman Sachs, took a 23 per cent stake in SSL last December - one of only three European technology companies in which it has invested. Industry sources estimate the company, which employs 200 people, generates revenues of about $28 million annually.

However, its status is expected to change shortly - SSL executives say a decision on a dual US Nasdaq and Irish flotation is likely by the end of this year. Restructuring at board level has already brought Mr Paul Harvey, a Goldman Sachs executive, on board as a non-executive director. Mr Bill McCabe, the man behind CBT Systems and Knowledge Well has been a non-executive director since he left CBT last year. Mr McCabe played an instrumental role in helping SSL's strategic positioning, by opening doors to leading US investment houses prior the Goldman Sachs' investment.

"We could go public in the morning if the board decided it wanted that. Our history and current profile would certainly support it, but the final decision is with the board," says Mr Brian Long, SSL chief executive.

Mr Long's own role has shifted more towards corporate strategy since the appointment of a new chief operations officer, Mr Kevin Fielding last June. Mr Fielding now takes care of the day-to-day running of SSL activities. Seventy-five per cent of SSL's end customers are based in the US and it operates a sales office in San Jose and a design centre in Scott's Valley in the heart of Silicon Valley.

SSL was founded by Mr Long and Mr Peter McManamon, after they were introduced through the IDA. Both had expressed an interest in starting a technology company and Mr Long's experience of integrated circuit development at Digital Equipment prompted him to review the traditional semiconductor model.

"We identified a substantial market for outsourcing intellectual property in chip technology. For example, 90 per cent of Intel's cash goes into the manufacturing process. Any profit or loss depends on the factory capacity used, so if 30 per cent of the equipment is left idle it loses money. There is immense pressure to get more products through within shorter time frames."

ST Microelectronics (formerly SGS Thomson) agreed to invest $300,000 in the company and took an option to acquire a 20 per cent equity stake in SSL - which it still retains. Enterprise Ireland (formerly Forbairt) retains a 12 per cent stake in SSL, following an investment of more than £1 million in the past five years.

All SSL's activities involve the design and customisation of new technologies on chips for clients partnering with semiconductor manufacturers. It is a leading developer in the growing trend towards "systems on a chip".

Traditionally, the individual components of computer processes were built by separate companies. However, the realisation of Moore's Law - where computing power doubles every 18 months - has led to the development of entire systems on a single computer chip.

SSL engineers integrate various combinations of memory, timing and analog circuitry along with digital signal processing technology. SSL has designed more than 40 mixed-signal "systems on a chip" in the last two years - generating more than $350 million in sales for clients last year. Through its partnership with ST Microelectronics, SSL has designed five generations of chips for Seagate Technology.

SSL's primary markets are divided between digital signal processing (DSP), wireless communications, and data storage products. Both DSP and wireless technology have emerged as major growth areas, and SSL is seeking to position itself at the forefront.

DSPs are increasingly used in consumer products, home appliances, and automotive applications to offer improved results. Last year SSL won a $4.4 million contract to produce DSPs for use in Mercedes E Class W220 cars. The chips are used in conjunction with advanced digital audio equipment from BOSE Corporation, another SSL partner.

SSL design engineers based in Cork and Dublin are using DSP technology to render CD players shockproof. Leading DSP manufacturers, Texas Instruments and Lucent Technologies who between them share 58 per cent of the global $3.65 billion DSP market, have also availed of SSL's services.

In the area of wireless communications, SSL was involved in a major advance recently through its work in developing an industry standard to facilitate simpler wireless connectivity between devices. The Bluetooth programme is conducted in association with Ericsson, IBM, Intel and Nokia, and according to Mr Quinn: "This is a market that's going to explode. It's like the GSM network four years ago, it requires a multiple investment from many players."

SSL is developing chip technology for about 25 major US companies at the moment, and is adding another three companies per quarter. "Our work backlog over the next three years is valued at about 2 1/2 times our revenues last year."