Firm's founder shares business lessons

Semitool founder Ray Thompson has weathered his share of economic ups and downs, including the time he reduced his work force from 220 employees to a skeleton crew of just 19 to survive a particularly difficult time.

Thompson shared lessons learned over more than 30 years in the sometimes volatile semiconductor industry at the Kalispell Chamber of Commerce monthly luncheon on Tuesday. He was the second speaker in the chamber’s yearlong campaign for free enterprise.

Applied Materials Inc. recently purchased Kalispell-based Semitool for $364 million, a move hailed by both companies as a collaborative transaction that will allow Applied to broaden its range of products and take advantage of a global recovery in the semiconductor industry.

Thompson championed Applied Materials for its global presence and ability to mass-market the Kalispell-based business.

Selling for $3 million apiece, it was the Raider — a machine that produces high-rate, patterned copper electroplating — that grabbed the attention of Applied Materials. The machine was designed and built in 2003 in just three short weeks.

“This is the product that has great opportunity for Applied,” Thompson said.

Not only is the state-of-the-art machine a great asset to the industry, but its development also showed the moxie and commitment of Semitool’s Kalispell work force. Thompson said the integrity and trustworthiness of those employees is why the company set up shop in Kalispell in the first place.

“We really need people that will take responsibility, that can handle failure,” he said. Thompson lauded his workers for their quality workmanship and skills.

“[Applied Materials is] totally impressed,” he added.

Since the global superstar acquired Semitool in December, Applied Materials has added structure that Thompson admits he was never able to. Charts, projections or planning weren’t his strong suit, he said.

Instead, Thompson preferred to spend his time on the design floor, taking a hands-on approach to development.

“The company’s never had a CEO,” he said, despite the title he held for three decades.

Thompson outlined Semitool’s transformation from humble beginnings in a $65,000 building in 1979 to a publicly traded company with outposts in Germany, Austria and England.

Pointing to Semitool’s longevity and adaptability, Thompson emphasized the two components critical to business survival: fun and profit.

“Without both, a business will go away and die. That’s not to say it’s fun all the time and not to say it’s always profitable,” he underscored.

Enthusiasm and a desire to make others successful, along with a good dose of humility, are the fundamental tools to compete in free enterprise.

“If you’re going to be doing work for others, it’s not about you,” he said.

Thompson briefly addressed the challenges Montana poses for new businesses during a question-and-answer session.

“It’s not that you want just any business here,” he said, mentioning that all businesses have a certain culture they bring and if that culture can’t survive here, the business won’t, either.

Another impediment to bringing in business is high taxes, a deterrent that has hit businesses particularly hard during the economic downturn.

“That’s the toughest part of coming to Montana,” Thompson said. He blames growing government intrusion for lessening productivity and growth.

“The failure side of the business is important. That creates value, if there is any to be had,” he said.

Thompson’s advice for businesses in the current economy is simply to be careful and be conservative with regard to future projections.

“You just have to take it one day at a time. And if you lift one foot, make sure the other one is pressed flat to the ground,” he said.

Reporter Erika Hoefer may be reached at 758-4439 or by e-mail at ehoefer@dailyinterlake.com