The semiconductor company was a subsidiary of a big electronics company which had decided to get rid of it. However the CEO of the parent decided to give the semiconductor company one last chance and looked around for a CEO to fix it.
The new CEO came in and found that a group within the company had found a whole new way of doing modems.
He decided to focus the whole company on modems, and the company became a big success.
Moral: Play to your strengths