book.chapter The origins of silicon valley

Silicon valley's evolution into a tech hub began with the 1848 california gold rush and continued with milestones like the 1909 establishment of a san jose radio station, the 1933 navy acquisition of moffett field, the 1939 founding of hewlett-packard, the invention of the transistor in the 1940s, arpanet's 1969 expansion, and the birth of major tech firms from the 1970s-1990s. Stanford university's role Founded in 1885 by leland and jane stanford in memory of their son, stanford university was established with a focus on science and strong ties to business and government leaders. Opening in 1891 in palo alto, california, it now selects about 2,400 freshmen yearly from a diverse pool, with 60% of undergraduates from minority backgrounds. Offering significant financial aid, stanford ensures tuition is free for families earning under $100,000. Its alumni, deeply involved in giving back, help make stanford the top fundraising university in the u.S. This engagement has been crucial in transforming silicon valley into a global tech and innovation center. The invention of the vacuum tube Lee de forest, a pivotal figure in the 20th century's technological revolution, invented the audion, an electronic amplifying vacuum tube, in 1906. Moving to the san francisco bay area in 1910, he set up his electronics research laboratory in palo alto, california. From there, de forest spearheaded advancements in vacuum tubes, crucial for the development of radio broadcasting, television, and sound recording. His work in palo alto, particularly in radio telephones and receivers, and his contribution to the first coast-to-coast telephone line in the u.S., established the city as a cornerstone of electronics innovation. The establishment of moffett field Laura whipple spearheaded the acquisition of a 1,000-acre site near stanford university for a u.S. Navy airfield in the 1920s. The land, purchased for $1, led to the construction of a facility for the airship macon, which crashed in 1933. Post-pearl harbor, the site was reclaimed by the navy for airship operations and renamed moffett field. The airship program ceased in 1947, paving the way for the national advisory committee for aeronautics, and later nasa, to establish the ames research center in 1958. Ames now excels in astrobiology, supercomputing, and the search for habitable planets. Frederick terman's contributions In 1945, stanford received only $50,000 from the national defense research committee, a sum that paled in comparison to the millions given to other universities. This slight spurred frederick terman, stanford's engineering head, to transform the university into a tech leader. By 1950, stanford was pivotal in military projects, and terman's encouragement of students to start their own tech ventures led to the rise of silicon valley. His vision turned the area into a global innovation hub, changing stanford and the world's tech landscape forever. The growth of the electronics industry In the early 20th century, palo alto was known for its agricultural industry, but by the 1970s, it had transformed into a technology hub, largely due to companies like hewlett-packard and varian associates. Founded in 1939 by stanford graduates bill hewlett and dave packard with just $538, hewlett-packard quickly made a mark with products like the hp 22a audio oscillator, even attracting walt disney productions as a customer. Varian associates, started by the varian brothers, revolutionized radar with their klystron tube, and were pioneers in employee benefits. Clara jobs, steve jobs' mother, worked there as a bookkeeper. The founding of shockley semiconductor William shockley left bell labs to start his own semiconductor company in palo alto, attracting a team of talented engineers known as the "traitorous eight." due to his management style, they left and, with arthur rock's help and sherman fairchild's funding, founded fairchild semiconductor in 1957. The company quickly succeeded, delivering its first product to ibm in 1958 and seeing sales skyrocket from $65,000 to $21 million by 1960, becoming a major force in silicon manufacturing on the west coast. The development of a spin-off culture Fairchild semiconductor's growth led to the formation of silicon valley's innovation hub. The company's founders, known as the traitorous eight, left to start their own ventures, including intel by robert noyce and gordon moore, and others like amd and national semiconductor. Their exits spawned approximately 130 firms, mostly around palo alto, fostering a culture of spin-offs and attracting global talent and investment. This phenomenon, supported by venture capital, established silicon valley as a leading innovation center, demonstrating the region's openness to new business creation. The expansion of venture capital The semiconductor industry in silicon valley flourished in the mid-20th century, attracting east coast investors through significant ipos of varian, hewlett-packard, and ampex, alongside legislative changes that favored startup financing. The term "silicon valley" was coined by electronic news in 1971, highlighting the region's innovative electronics sector. This area became a magnet for top talent and entrepreneurs, fostering a unique culture of innovation, disregard for hierarchy, and social justice. Despite economic fluctuations, silicon valley's pioneering spirit and resilience have maintained its status as a global innovation hub.