Animated timeline shows how Silicon Valley became a $2.8 trillion neighborhood (2024)

Video Tech

History of Silicon Valley in one animated timeline

Corey Protin, Matthew Stuart, and Matt Weinberger

2020-12-18T22:30:00Z

Description

Silicon Valley is an almost$3 trillion neighborhoodthanks to companies likeApple, Google, and Tesla.But it wasn't always this way.

In the late 1800s,San Francisco's port helped make it a hubof the early telegraphand radio industries.In 1909,San José became home to oneof the US'sfirst radio stations.In 1933, the Navypurchased Moffett Fieldto dock and maintainthe USS Macon.This made Moffett Field a major hubfor the early days of the aerospace industry.Many scientists and researchers all found work in the area. In 1939, the Ames ResearchCenter was founded in the area,and it became home to the world's largest wind tunnel in 1949.

Also in 1939, William Hewlettand Dave Packard foundedHewlett-Packard in Palo Alto,which originally made oscilloscopes.Then, during World War II, HPmade radar andartillery technology.At this point, computers were about the size of a room.

In the 1940s, WilliamShockley coinventedthe transistor while at Bell Labs. The transistor is now known as the computer processor.In 1956, Shockley left Bell and founded his own company —Shockley Semiconductor Labs. It was the first company tomake transistors out of siliconand not germanium. The company was founded in Mountain View, California —so Shockley could be closer to his sick mother. Shockley's company employed many recent grads of Stanford.

In 1957, eight Shockley employees grew tired of his demeanorand left the company.Shockley called the groupthe "Traitorous Eight."They partnered withSherman Fairchildto create Fairchild Semiconductor. In the early 1960s, Fairchild helped make computer componentsfor the Apollo program.Later in the decade, manyof the "Traitorous Eight" left Fairchild and foundedtheir own companies.Including Gordon Moore and Robert Noyce, who in 1968 founded their own company in Santa Clara called Intel. Soon after, otherex-Fairchild employeesand "Traitorous Eight"members helped foundAMD, Nvidia, and venturefund Kleiner Perkins.

In 1969, the Stanford Research Institutebecame one of the four nodes of ARPANET. A government research project that would go on to become the internet.In 1970, Xerox openedits PARC lab in Palo Alto.PARC invented early computing tech,including ethernet computing and the graphical user interface.In 1971, journalist Don Hoeflertitled a 3-part reporton the semiconductor industry "SILICON VALLEY USA." The name stuck.

In the 1970s, companies likeAtari, Apple, and Oraclewere all founded in the areaIn the 1980s, Silicon Valley becamethe widely accepted centerof the computer industry.eBay, Yahoo, PayPal, and Googleare just some of the companies founded in the area in the 1990sWith Facebook, Twitter, Uber, and Teslajoining them the following decade.The growth of the tech industry in the area continues to this day.

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EDITOR'S NOTE: This video was originally published in May 2017.

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Silicon Valley is an almost$3 trillion neighborhoodthanks to companies likeApple, Google, and Tesla.But it wasn't always this way.

In the late 1800s,San Francisco's port helped make it a hubof the early telegraphand radio industries.In 1909,San José became home to oneof the US'sfirst radio stations.In 1933, the Navypurchased Moffett Fieldto dock and maintainthe USS Macon.This made Moffett Field a major hubfor the early days of the aerospace industry.Many scientists and researchers all found work in the area. In 1939, the Ames ResearchCenter was founded in the area,and it became home to the world's largest wind tunnel in 1949.

Also in 1939, William Hewlettand Dave Packard foundedHewlett-Packard in Palo Alto,which originally made oscilloscopes.Then, during World War II, HPmade radar andartillery technology.At this point, computers were about the size of a room.

In the 1940s, WilliamShockley coinventedthe transistor while at Bell Labs. The transistor is now known as the computer processor.In 1956, Shockley left Bell and founded his own company —Shockley Semiconductor Labs. It was the first company tomake transistors out of siliconand not germanium. The company was founded in Mountain View, California —so Shockley could be closer to his sick mother. Shockley's company employed many recent grads of Stanford.

In 1957, eight Shockley employees grew tired of his demeanorand left the company.Shockley called the groupthe "Traitorous Eight."They partnered withSherman Fairchildto create Fairchild Semiconductor. In the early 1960s, Fairchild helped make computer componentsfor the Apollo program.Later in the decade, manyof the "Traitorous Eight" left Fairchild and foundedtheir own companies.Including Gordon Moore and Robert Noyce, who in 1968 founded their own company in Santa Clara called Intel. Soon after, otherex-Fairchild employeesand "Traitorous Eight"members helped foundAMD, Nvidia, and venturefund Kleiner Perkins.

In 1969, the Stanford Research Institutebecame one of the four nodes of ARPANET. A government research project that would go on to become the internet.In 1970, Xerox openedits PARC lab in Palo Alto.PARC invented early computing tech,including ethernet computing and the graphical user interface.In 1971, journalist Don Hoeflertitled a 3-part reporton the semiconductor industry "SILICON VALLEY USA." The name stuck.

In the 1970s, companies likeAtari, Apple, and Oraclewere all founded in the areaIn the 1980s, Silicon Valley becamethe widely accepted centerof the computer industry.eBay, Yahoo, PayPal, and Googleare just some of the companies founded in the area in the 1990sWith Facebook, Twitter, Uber, and Teslajoining them the following decade.The growth of the tech industry in the area continues to this day.

Follow Tech Insider:On Facebook

EDITOR'S NOTE: This video was originally published in May 2017.

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Animated timeline shows how Silicon Valley became a $2.8 trillion neighborhood (2024)

FAQs

How did Silicon Valley become Silicon Valley? ›

The term Silicon Valley was coined by journalist Don Hoefler in a 1971 article for the trade magazine Electronic News. Soon after, Silicon Valley became the accepted name for the Santa Clara Valley area.

What area is considered Silicon Valley? ›

Cities that officially comprise Silicon Valley include San Jose, Menlo Park, Palo Alto, Mountain View, Cupertino, Santa Clara, Redwood City and Sunnyvale.

Which place is called Silicon Valley? ›

Silicon Valley is a global center of technological innovation located in the South San Francisco Bay Area of California. The area was named after the primary material found in computer microprocessors. Silicon Valley is home to dozens of major technology, software, and internet companies.

What made Silicon Valley collapse? ›

SVB didn't have the cash on hand to liquidate these deposits because they were tied up in long-term investments. They started selling their bonds at a significant loss, which caused distress to customers and investors. Within 48 hours after disclosing the sale of assets, the bank collapsed.

Why is Silicon Valley so successful? ›

Silicon Valley — synonymous with technology and innovation — is renowned for its unique ecosystem. Its unparalleled success lies in a combination of factors including a culture of innovation, a concentration of capital, a high density of talent, and supportive infrastructure.

How did Silicon Valley get so big? ›

Silicon Valley was born through the intersection of several contributing factors, including a skilled science research base housed in area universities, plentiful venture capital, permissive government regulation, and steady U.S. Department of Defense spending.

Why did Route 128 fail? ›

Route 128 was more highly dependent upon federal government contracts than Silicon Valley and, when government contracts declined with the moderation and end of the Cold War, Route 128 found it hard to adapt to the civilian market.

Why is Silicon Valley so techy? ›

It is easy to build infrastructure facilitating similar businesses. Silicon Valley is a destination on its own. Starting a tech business in such an ambiance with an established business infrastructure, talented resource pool, and a flourishing marketplace provides a clear head start compared to other locations.

How many millionaires are in Silicon Valley? ›

Other stark illustrations of the growing wealth gap in the region include: Of Silicon Valley's 163,000 millionaire households (those with more than $1 million in investable assets), about 8,300 have more than $10 million.

What is the nickname for Silicon Valley? ›

In fact it used to be nicknamed the Valley of Heart's Delight. The region covers some 100 km², and its main city is San Jose, which now has a population of close to 1 million people. While people trace the birth of Silicon Valley back to 1939, the term “Silicon Valley” was not used until 1971.

What is the biggest business in Silicon Valley? ›

Oracle Corporation (NYSE:ORCL), Salesforce, Inc. (NYSE:CRM), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL) are some of the biggest technology companies in Silicon Valley.

Who founded Silicon Valley? ›

What made Silicon Valley a Hub for entrepreneurs? And why has that become as much of a liability as an advantage? Silicon Valley grew up in the area between San Jose, California, and San Francisco as a result of Frederick Terman, the legendary dean of Stanford engineering school during the 1940s and 1950s.

What is Silicon Valley in Texas called? ›

Silicon Hills is a nickname for the cluster of high-tech companies in the Austin metropolitan area in the U.S. state of Texas. Silicon Hills has been a nickname for Austin since the mid-1990s. The name is analogous to Silicon Valley, but refers to the hilly terrain on the west side of Austin.

What is the capital of Silicon Valley? ›

The City of San José, the Capital of Silicon Valley, is one of the nation's best managed cities and one of the top 10 cities in which to live, work, and do business.

Why did Silicon Valley became the center of the high tech economy? ›

Silicon Valley was born through the intersection of several contributing factors, including a skilled science research base housed in area universities, plentiful venture capital, permissive government regulation, and steady U.S. Department of Defense spending.

Why is Silicon Valley a startup heaven? ›

The local ecosystem supports startups with rich funding and networking opportunities, enabling entrepreneurs to showcase their ideas and products on the international stage. This open and inclusive culture attracts talents and innovators from around the world, making Silicon Valley a global hub for entrepreneurship.

What is the richest zip code in Silicon Valley? ›

Atherton once again tops the Silicon Valley Business Journal's List of having the wealthiest ZIP code in the region. The city of about 7,200 people, which has the 94027 ZIP code, had an average household income in 2020 of $428,454.

What is the wealth gap in Silicon Valley? ›

This year's findings highlight how eight households in Silicon Valley own $260 billion in total wealth, which further translates into $50 billion in liquid wealth—six times more than the total wealth of the bottom 50% of those in Santa Clara and San Mateo counties combined.

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