Zilog was the first company entirely dedicated to microprocessors started by Federico Faggin and Ralph Ungermann in November 1974. Faggin was Zilog's President and CEO until the end of 1980 and he conceived and designed the Z80 CPU and its family of programmable peripheral components. He also co-designed the CPU whose project leader was Masatoshi Shima. The Z80-CPU was a major improvement over the 8080, yet it retained software compatibility with it. Much faster and with more than twice as many registers and instructions of the 8080, it was part of a family of components that included several intelligent peripherals (the Z80-PIO, a programmable parallel input-output controller; the Z80-CTC, a programmable counter-timer; the Z80-SIO, programmable serial communications interface controller, and the Z80-DMA, programmable direct memory access controller). This chip family allowed the design of powerful and low-cost microcomputers with performance comparable to minicomputers. The Z80-CPU had a substantially better bus structure and interrupt structure than the 8080 and could interface directly with dynamic RAM, since it included an internal memory-refresh controller. The Z80 was used in many of the early personal computers, as well as in video game systems such as the ColecoVision, Sega Master System and Game Boy. The Z80 is still in volume production in 2017 as a core microprocessor in various systems on a chip.
The Zilog Z8 micro controller (1978) was one of the first single-chip microcontrollers in the market. It integrated an 8-bit CPU, RAM, ROM and I/O facilities, sufficient for many control applications. Faggin conceived the Z8 in 1974, soon after he founded Zilog, but then decided to give priority to the Z80. The Z8 was designed in 1976–78 and is still in volume production today (2017).