I live in the Santa Clara Valley of California, the high-tech capital of the world – yes, the world! As recently as the nineteen-fifties, we locals were surrounded by acre after acre of apricot, cherry, and prune trees, and people called the region the Valley of Heart’s Delight. And a beautiful, bountiful landscape, it was. Today, after monumental change, the heart of the Santa Clara Valley has become known as Silicon Valley, and the cash crop of the region derives not from produce, but from silicon, that natural element crucial to the ubiquitous transistor and the integrated circuits which combine hundreds of thousands of transistors on a tiny silicon “chip” no larger than a fingernail. There are virtually no producing orchards left in the Santa Clara Valley. Today, the landscape is covered with pavement connecting hundreds of industrial parks and large corporate campuses. Electrical engineers are everywhere, and venture capitalists are here, too, ready to loan money to promising fledgling operations whose founders have “the next big idea.”
This is where it all began: a tiny garage on Addison Avenue, in an unassuming residential area near downtown Palo Alto and just down the road from Stanford University (more, to follow). Fortunes have been made (and lost) in Silicon Valley as fragile, seedling companies strived to take root and grow, over the years, into towering trees whose far-reaching branches continue to merge with those from neighboring seedlings. The result is an overarching canopy of scientific knowledge and technical know-how which has changed the way we live our lives.
The Famous HP Garage
How and why did this remarkable transition occur in fewer than six decades, and why here? The local story of Apple Computer is familiar enough to present-day residents of this valley. As impressive and ubiquitous as the company and its products may be, Apple is but the result and not a primary cause of the tech culture we witness today in the region. Apple Computer was founded in 1976 in a nearby Cupertino residential garage by two youngsters, Steve Wozniak and Steve Jobs, who truly believed they could build a better computer than those produced by other “hobbyist afficionados” back in those early years. Wozniak had the technical knowledge necessary to create a viable Apple II computer for the market and Jobs was the corporate/marketing visionary with the stamina to make Apple Computer happen as it did.
Stanford University: The Catalyst for Silicon Valley
Two young electrical engineering graduates from the Stanford University graduating class of 1935 came along much earlier than the two Steves of Apple, and it was their success that heralded the transformation of the Santa Clara Valley. William Hewlett and David Packard were the names, and their fledgling company became Hewlett Packard, also known as HP, one of the truly great icons in Valley history. Have you visited the famous “HP Garage” at 367 Addison Street in downtown Palo Alto? Although rarely open to the public, it is visible from the sidewalk. It was in this tiny, detached garage directly behind their rented quarters that Hewlett and Packard began HP by designing and building a simple piece of electronic test equipment called the 200A audio oscillator. From such a simple beginning, these young entrepreneurial engineers built corporate giant, Hewlett Packard, long the leading supplier of state-of-the-art electronic test/measurement equipment, computers, and printers. During my thirty-seven year career as an electrical engineer in this valley, many of my working hours were spent in a product development lab surrounded by stacks of HP test and measurement equipment. Any older electrical engineer, anywhere, can relate!
Workbench in the HP Garage ( As It Looked Back Then )
The Hewlett Packard story showcases the two primary reasons that cities including Palo Alto, Mountain View, Cupertino, Sunnyvale, Santa Clara, and San Jose find themselves at the focus of the world’s tech capital. The two prime movers underpinning today’s Silicon Valley were: Stanford University and its famed Professor of Electrical Engineering during the nineteen-twenties through the fifties, Frederick Emmons Terman. Bill Hewlett and Dave Packard were both electrical engineering graduates, class of 1935, who studied at Stanford under Fred Terman. It was Terman who recognized the talent of his two charges and suggested that they consider an alternative to the long practice of recent west-coast electrical engineering grads which was to pack their bags and head east to where the jobs were. Famous corporate names like General Electric, Westinghouse, IBM, Bell Labs, and countless others were well established on the east coast and always on the lookout for engineering talent. Looking southward from the Stanford campus in 1938, little, save acres of orchards, could be seen – certainly few established companies with good opportunities like those on the east coast.
Fred Terman was, himself, an accomplished electrical engineer who wrote the “industry standard textbook” titled Radio Engineering back in 1932. As a student at Stanford in the early nineteen-sixties, I myself used the 1955 fourth edition of his book. Terman was not only a nationally recognized engineer but an uncommon visionary, as well. At the center of his vision for the future, was Stanford University. Accordingly, he convinced his talented pair of students, Hewlett and Packard, to break tradition, remain in the region, and begin their very own company, right here! They did precisely that at 367 Addison Avenue, less than three miles from campus. HP grew rapidly to become an industry giant with an uncommonly fine corporate culture and identity. And the rest was history, as Terman, from his Stanford faculty position, took an ever more active role in promoting the local region and seeding it with other start-ups during the years that followed. Not only was the proximity of Stanford University an attraction to young entrepreneurs bent on acquiring state-of-the-art knowledge, the fresh, scenic beauty of the region and the fine weather were not to be discounted, either!
Terman was instrumental in Stanford’s important 1951 decision to incorporate some of the University’s prime, ninety-four hundred acres of extensive campus as the Stanford Industrial Park. HP, in its heyday, established its corporate headquarters on the edge of the new industrial park – a familiar sight on Page Mill Road, just west of the El Camino Real. Many tech and venture capital firms followed suit and settled nearby on Stanford land. The Stanford Shopping Center sits on Stanford property under a very long-term lease agreement with the University. The founding grant from Leland and Jane Stanford stipulates that the land they bequeathed as part of the university charter shall never be sold.
Stanford University is a fascinating study in itself. Founded in 1891, in memory of their only son, Leland Stanford Junior, who died at the young age of sixteen, Leland and Jane Stanford dedicated the school to “the children of California.” Stanford has made an incredible mark not only on this valley, but on the world at large, thanks in large part to the vision of Fred Terman.
Once his former electrical engineering students, Bill Hewlett and Dave Packard, were convinced by Terman in 1938 to plant the seeds of their start-up company near Stanford and downtown Palo Alto, things happened quickly. In 1953, the Varian brothers, Russell and Sigurd, were the first to occupy the university’s newly established Stanford Industrial Park which was ably promoted by Terman. The headquarters for Varian Associates was located at the juncture of El Camino Real and Page Mill Road. It was there that the brothers manufactured their important klystron tubes, devices which operated in the microwave spectrum and proved so vital to the burgeoning communications industry. The author fondly recalls his summer job at Varian in 1961, testing large, water-cooled, high-power klystrons. My first full-time employment after college was with a small electronics company just up the road from Varian Associates, also within the Stanford Industrial Park.
Enter William Shockley and Transistor Technology
In 1955, William Shockley left Bell Telephone Labs in New Jersey, where, in 1947/48, he developed transistor technology working with two colleagues. For that momentous achievement, the trio shared the 1956 Nobel Prize in physics. In that very same year, Shockley, with funding support from industrialist Arnold Beckman and Stanford, began operations at Shockley Semiconductor in a tiny converted storefront building on San Antonio Road in Mountain View. His plan? To make transistors a commercial success – and himself a lot of money! The transistor was, in most significant respects, a miniature replacement for the large, “clumsy,” and power-hungry vacuum tubes which had long served electrical engineers as signal amplifier/switching devices since first introduced by Lee De Forest in 1906.
2N697 Transistor
Although germanium was the “solid-state” semiconductor material originally used by the Shockley team at Bell Labs, Shockley, a brilliant physicist with a Phd in physics from MIT, ultimately surmised that the future of commercial transistor technology would rely on another semiconductor known as silicon. Thus, we locals are residing not in Germanium Valley, but Silicon Valley. The development of the transistor proved such an important and pervasive a technology that its silicon ingredient symbolizes much of the other incredible and related technologies that were to emerge from this region – hence the name Silicon Valley.
In 1950, Shockley published the first authoritative book (indeed, the bible) on semiconductor behavior, Electrons and Holes in Semiconductors. The publication of Shockley’s famous volume heralded the coming age of computers.
Transistor technology was the “big new thing” (a vast understatement) in 1955, destined to replace the vacuum tube and change our world – which it did. Transistors, with their constantly advancing “solid-state,” semiconductor technology and incredible miniaturization continue, still, to change our world, and Shockley deserves much of the credit for that. But, after bringing silicon to this valley, Shockley’s start-up company, here, was destined to be only an indirect factor in all that was to quickly transpire.
William Shockley was a brilliant physicist, but a terrible manager of the men he hired into his new venture. He also knew virtually nothing about the business world, but he had personally recruited an extremely talented band of engineers, physicists, and chemists into Shockley Semiconductor. The best and brightest of the bunch were destined to leave Shockley’s employ after only one year and make real Valley history at another fledgling company – Fairchild Semiconductor, in Mountain View. That group of employees became known as “the traitorous eight” after handing Shockley a mass resignation and heading out the door for Fairchild and better prospects.
Robert Noyce and Gordon Moore were the spiritual and technical leaders of this band of eight. By 1961, they, and their team had catapulted Fairchild into fame and fortune by developing the “integrated circuit” manufacturing process which allows the economical mass-fabrication of thousands of interconnected transistors on a single tiny chip of silicon. That post-Shockley leap in semiconductor technology/fabrication was THE pivotal point for everything – literally the beginning of the digital computer age as we have come to know it. Coupled with Claude Shannon’s The Mathematical Theory of Communication and Norbert Weiner’s pioneering book, Cybernetics, Fairchild’s brilliant band of eight and their breakthroughs in semiconductor fabrication allowed digital technology to mushroom in the Santa Clara Valley and elsewhere to heights unimaginable even to the most optimistic of visionaries. Just contemplate your own iPhone!
Shugart Associates in Sunnyvale along with Quantum and Maxtor were other fast-growing companies in the Valley that developed and manufactured data-storage devices known as “disk drives.” These electromechanical devices used magnetic recording to store hundreds of millions of data bits (1’s and 0’s) on their whirling, plated aluminum platters. Fairchild’s integrated circuit technology gave us powerful small computers requiring immense data-storage capability, hence the burgeoning disk drive industry, which became a very big and important player in the growth of Silicon Valley. Today, most computing devices use – you guessed it – semiconductor data storage instead of magnetic recording.
In 1969, Bob Noyce and Gordon Moore left Fairchild to start yet a new venture which emerged as Intel whose fabulously successful and quickly ubiquitous microprocessors (computers on a small silicon chip) further enhanced Silicon Valley’s status. Almost on cue, garage start-up Apple Computer, under Steve Jobs’ visionary guidance, surfaced around 1977/78 right next-door in Cupertino and very successfully implemented the Apple II vision of semiconductor computing technology for the “masses.” This, while consistently attaching its renowned brand of imagination and excellence to the products Apple continues to produce. The iPhone concept/implementation has changed everything, has it not?
In closing, I should add that Stanford University was not an idle spectator to all of these world-changing developments after getting things started in the Valley. Rather, the University quite brilliantly adopted an active investment role and cultivated an on-going influence on many of these success stories, including even Shockley’s ill-fated effort. For starters, the school remains a long-time landlord, collecting rents on its numerous ninety-nine year property leases – prime Palo Alto property which was included in the original ninety-four hundred acre Stanford endowment. Stanford also rapidly expanded its engineering and computer science curriculum over the years, providing both personnel and expertise to the region.
When former Stanford engineering student Cyril Elwell (class of 1904) opened his Poulsen Wireless Telephone and Telegraph Company (a forerunner of radio) near the campus in 1908, he obtained a five-hundred dollar loan from Stanford’s first president, David Starr Jordan. Several of the faculty also invested. In that sense, Stanford can claim credit for the emergence of venture-capital financing which has long been so prominent in the Valley and so vital to start-up companies!
This historic stock certificate from 1910 for over one million shares of Poulsen Wireless reflects Elwell’s founding interest in the newly organized company.
Many years later, in a newspaper article addressed “To the [SF?] Examiner,” Elwell wrote: “Your editorial …did not go far enough back in crediting Stanford University as the pioneer of the fast growing electronic and atomic eras.” Elwell proceeded to relate my account of the early history regarding Stanford’s influence on his fledgling company. Poulsen Wireless ultimately became Federal Telephone and Telegraph – a very long-standing company.
How often have you used the Google search-engine on your computer? Thank two former Stanford students who founded Google and provided the world a revolutionary way to search for (and locate) most any information one can imagine. The importance of Google search to enhancing the flow of vital information and collaboration for the worlds of tech and medicine can scarcely be overestimated. The list of similar examples involving Stanford’s influence is long and signficant.
Suffice to say, Stanford University has not built its huge endowment since opening its doors in 1891 by collecting tuition and room and board from its students. Look to Fred Terman and wise investing by the University to account for its continued funding – to the tremendous benefit of Stanford students in need of financial aid, to this Valley, to the state of California, and, without exaggeration, to all the world that depends on technology.
Such fame, fortune, and game-changing technology has happened within this regional neighborhood – in barely more than one human lifetime. There is a cost, of course, to all of this, and many choices will be required as we go forward. The region fairly hums today to the activity and progress within. Sadly, gone forever are tranquil afternoons amid the blossoms in the “Valley of Heart’s Delight.” The simple fact is this: this Valley is permanently changed, and so is the way we all live our lives because, in large part, of what took place, here.