Three professors from the electronics and computer engineering department at the Technical University of Lisbon--José Franca and two colleagues--founded Chipidea 10 years ago. At the time, the digital revolution was transforming the electronics industry, and many universities' engineering schools were beginning to jettison their analog curricula.

Stubbornly convinced of the significance of teaching analog technologies, the three professors hit upon the idea of a startup that might create a professional environment where students could apply their knowledge.

"The decision to go ahead with Chipidea was very strong and, in a way, quite simple," Franca said. The choice was either "to keep doing more of the same or to try and do something that, although small, could have a positive impact in the lives of many young, talented engineers. I chose the latter, and so far time has been ruling in my favor."

For Franca, Chipidea was never a side business or a hobby. Though he founded the company while still teaching Franca said he made an "absolute, total commitment" to Chipidea. He was 42 years old. "At stake was my reputation. I could not fail," he said. He eventually took a leave of absence from the school.

Establishing a built-in work environment in Lisbon for his best students proved a sound idea. With little competition in the local market, Chipidea enjoys unusual workforce stability as an employer. Today, as the need grows for analog and mixed-signal solutions, the company's in the catbird seat.

Franca has tapped personal contacts and Portuguese connections--Portugal's population is only 10 million, he said, but 5 million more Portuguese live overseas--to establish Chipidea engineering centers in Poland, Belgium, Macau and China.

As it expands its operations beyond Portugal, Chipidea applies three rules, Franca said."First, I look for a local anchor--someone I trust in establishing a local outfit," he said. "Second, I look for a university connection--a hook in academia. Third, I look for stability."