Teradyne (NYSE:TER) is a leading supplier of Automatic Test Equipment. The company's divisions, Assembly Test, and Semiconductor Test, are organized by the products they develop and deliver.
In 2007, Teradyne had sales of $1.1 billion, and currently employs about 3,600 people worldwide. Teradyne is a trademark of Teradyne, Inc. in the US and other countries.
Alex d'Arbeloff and Nick DeWolf met at the Massachusetts Institute of Technology (MIT) in the late 1940s when they lined up alphabetically in an ROTC class. After graduation, Alex and Nick pursued separate careers, getting together again in 1960 with the vision of starting their own company.
Alex and Nick foresaw that testing of electronic components in high-volume production would reach a bottleneck unless the tasks performed by technicians and laboratory instruments could be automated. Their business plan involved of a new breed of "industrial grade" electronic test equipment, known as much for its reliability and economic payback as for its technical performance.
The pair rented space above Joe and Nemo's hot dog stand, on the corner of Kingston and Summer Streets in downtown Boston, because of its convenient location for employees. The new venture "had to have a 'D' in it," according to DeWolf, and "'Tera' is the prefix for 10 to the 12th power, while 'dyne' is a unit of force." Thus, Teradyne was conceived. "To us, the name meant rolling a 15,000 ton boulder uphill.