Silicon Valley is a region in
Northern California
Northern California (commonly shortened to NorCal) is a geocultural region that comprises the northern portion of the U.S. state of California, spanning the northernmost 48 of the state's List of counties in California, 58 counties. Northern Ca ...
that is a global center for
high technology
High technology (high tech or high-tech), also known as advanced technology (advanced tech) or exotechnology, is technology that is at the cutting edge: the highest form of technology available. It can be defined as either the most complex or ...
and
innovation
Innovation is the practical implementation of ideas that result in the introduction of new goods or service (economics), services or improvement in offering goods or services. ISO TC 279 in the standard ISO 56000:2020 defines innovation as "a n ...
. Located in the southern part of the
San Francisco Bay Area
The San Francisco Bay Area, commonly known as the Bay Area, is a List of regions of California, region of California surrounding and including San Francisco Bay, and anchored by the cities of Oakland, San Francisco, and San Jose, California, S ...
, it corresponds roughly to the geographical area of the
Santa Clara Valley.
The term "Silicon Valley" refers to the area in which high-tech business has proliferated in Northern California, and it also serves as a general
metonym
Metonymy () is a figure of speech in which a concept is referred to by the name of something associated with that thing or concept. For example, the word "wikt:suit, suit" may refer to a person from groups commonly wearing business attire, such ...
for California's high-tech business sector.
The cities of
Sunnyvale,
Mountain View,
Palo Alto
Palo Alto ( ; Spanish language, Spanish for ) is a charter city in northwestern Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree known as El Palo Alto.
Th ...
and
Menlo Park are frequently cited as the birthplace of Silicon Valley. Other major Silicon Valley cities are
San Jose,
Santa Clara,
Redwood City and
Cupertino. The San Jose Metropolitan Area has the third-highest GDP per capita in the world (after
Zürich
Zurich (; ) is the list of cities in Switzerland, largest city in Switzerland and the capital of the canton of Zurich. It is in north-central Switzerland, at the northwestern tip of Lake Zurich. , the municipality had 448,664 inhabitants. The ...
, Switzerland, and
Oslo
Oslo ( or ; ) is the capital and most populous city of Norway. It constitutes both a county and a municipality. The municipality of Oslo had a population of in 2022, while the city's greater urban area had a population of 1,064,235 in 2022 ...
, Norway), according to the
Brookings Institution
The Brookings Institution, often stylized as Brookings, is an American think tank that conducts research and education in the social sciences, primarily in economics (and tax policy), metropolitan policy, governance, foreign policy, global econo ...
. As of June 2021, it also had the highest percentage of homes valued at $1 million or more in the United States.
Silicon Valley is home to many of the world's largest
high-tech corporations, including the headquarters of more than 30 businesses in the
''Fortune'' 1000, and thousands of
startup companies. Silicon Valley also accounts for one-third of all of the
venture capital
Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
investment in the United States, which has helped it to become a leading hub and
startup ecosystem for high-tech innovation, although the tech ecosystem has recently become more geographically dispersed.
It was in Silicon Valley that the silicon-based
integrated circuit
An integrated circuit (IC), also known as a microchip or simply chip, is a set of electronic circuits, consisting of various electronic components (such as transistors, resistors, and capacitors) and their interconnections. These components a ...
, the
microprocessor
A microprocessor is a computer processor (computing), processor for which the data processing logic and control is included on a single integrated circuit (IC), or a small number of ICs. The microprocessor contains the arithmetic, logic, a ...
, and the
microcomputer, among other technologies, were developed. , the region employed about a half million
information technology
Information technology (IT) is a set of related fields within information and communications technology (ICT), that encompass computer systems, software, programming languages, data processing, data and information processing, and storage. Inf ...
workers.
As more high-tech companies were established across San Jose and the Santa Clara Valley, and then north towards the Bay Area's two other major cities,
San Francisco
San Francisco, officially the City and County of San Francisco, is a commercial, Financial District, San Francisco, financial, and Culture of San Francisco, cultural center of Northern California. With a population of 827,526 residents as of ...
and
Oakland, the term "Silicon Valley" came to have two definitions: a narrower geographic one, referring to
Santa Clara County and southeastern
San Mateo County, and a
metonymical definition referring to high-tech businesses in the entire Bay Area. The term Silicon Valley is often used as a
synecdoche
Synecdoche ( ) is a type of metonymy; it is a figure of speech that uses a term for a part of something to refer to the whole (''pars pro toto''), or vice versa (''totum pro parte''). The term is derived . Common English synecdoches include '' ...
for the American high-technology
economic sector. The name also became a global synonym for leading high-tech research and enterprises, and thus inspired
similarly named locations, as well as
research parks and
technology centers with comparable structures all around the world. Many headquarters of tech companies in Silicon Valley have become hotspots for
tourism
Tourism is travel for pleasure, and the Commerce, commercial activity of providing and supporting such travel. World Tourism Organization, UN Tourism defines tourism more generally, in terms which go "beyond the common perception of tourism as ...
.
Etymology
"Silicon" refers to the
chemical element
A chemical element is a chemical substance whose atoms all have the same number of protons. The number of protons is called the atomic number of that element. For example, oxygen has an atomic number of 8: each oxygen atom has 8 protons in its ...
used in
silicon
Silicon is a chemical element; it has symbol Si and atomic number 14. It is a hard, brittle crystalline solid with a blue-grey metallic lustre, and is a tetravalent metalloid (sometimes considered a non-metal) and semiconductor. It is a membe ...
-based
transistor
A transistor is a semiconductor device used to Electronic amplifier, amplify or electronic switch, switch electrical signals and electric power, power. It is one of the basic building blocks of modern electronics. It is composed of semicondu ...
s and
integrated circuit
An integrated circuit (IC), also known as a microchip or simply chip, is a set of electronic circuits, consisting of various electronic components (such as transistors, resistors, and capacitors) and their interconnections. These components a ...
chips, which is the focus of a large number of
computer hardware
Computer hardware includes the physical parts of a computer, such as the central processing unit (CPU), random-access memory (RAM), motherboard, computer data storage, graphics card, sound card, and computer case. It includes external devices ...
and
software
Software consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications.
The history of software is closely tied to the development of digital comput ...
innovators and manufacturers in the region.
The popularization of the name is often credited to
Don Hoefler, the first journalist to use the term in a news story.
His article "Silicon Valley U.S.A." was published in the January 11, 1971, issue of the weekly trade newspaper ''
Electronic News''. In preparation for this report, during a lunch meeting with marketing people who were visiting the area, he heard them use the term.
Earlier uses outside journalism exist; for example, a May 1970 advertisement in the ''
Peninsula Times Tribune'' described a
Palo Alto
Palo Alto ( ; Spanish language, Spanish for ) is a charter city in northwestern Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree known as El Palo Alto.
Th ...
company that "helps production people in Silicon Valley."

However, the term did not gain widespread use until the early 1980s,
at the time of the introduction of the
IBM PC
The IBM Personal Computer (model 5150, commonly known as the IBM PC) is the first microcomputer released in the List of IBM Personal Computer models, IBM PC model line and the basis for the IBM PC compatible ''de facto'' standard. Released on ...
and numerous related hardware and software products to the consumer market.
The urbanized area is built upon an
alluvial plain within a
longitudinal valley formed by roughly parallel earthquake faults. The area between the faults subsided into a
graben
In geology, a graben () is a depression (geology), depressed block of the Crust (geology), crust of a planet or moon, bordered by parallel normal faults.
Etymology
''Graben'' is a loan word from German language, German, meaning 'ditch' or 't ...
or dropped valley.
Hoefler defined Silicon Valley as the urbanized parts of "the San Francisco Peninsula and Santa Clara Valley".
Before the expansive growth of the tech industry, the region had been the largest fruit-producing and packing region in the world up through the 1960s, with 39 fruit canneries. The nickname it had been known as during that period was "the Valley of Heart’s Delight".
History
Silicon Valley was born through the intersection of several contributing factors, including a skilled science research base housed in area universities, plentiful
venture capital
Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
, permissive government regulation, and steady
U.S. Department of Defense spending.
Stanford University
Leland Stanford Junior University, commonly referred to as Stanford University, is a Private university, private research university in Stanford, California, United States. It was founded in 1885 by railroad magnate Leland Stanford (the eighth ...
’s leadership was especially important in the valley's early development. Together these elements formed the basis of its growth and success.
The
United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
was more friendly than other countries to business investment, charging much lower taxes on
capital gains since the
Revenue Act of 1921, and featuring particularly loose
free market
In economics, a free market is an economic market (economics), system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of ...
controls over new business. In 1953, the
Small Business Administration
The United States Small Business Administration (SBA) is an independent agency of the United States government that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and str ...
was created to foster
startups
A startup or start-up is a company or project undertaken by an Entrepreneurship, entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship includes all new businesses including self-employment and businesses tha ...
, giving a boost to entrepreneurs.
Northern California
Northern California (commonly shortened to NorCal) is a geocultural region that comprises the northern portion of the U.S. state of California, spanning the northernmost 48 of the state's List of counties in California, 58 counties. Northern Ca ...
was even more welcoming, with a group of venture capitalists actively seeking high-tech business ideas, clustered on
Sand Hill Road in
Menlo Park and
Palo Alto
Palo Alto ( ; Spanish language, Spanish for ) is a charter city in northwestern Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree known as El Palo Alto.
Th ...
.
California
California () is a U.S. state, state in the Western United States that lies on the West Coast of the United States, Pacific Coast. It borders Oregon to the north, Nevada and Arizona to the east, and shares Mexico–United States border, an ...
's civil code undermined the usual
non-compete clause
In contract law, a non-compete clause (often NCC), restrictive covenant, or covenant not to compete (CNC), is a clause under which one party (usually an employee) agrees not to enter into or start a similar profession or trade in competition again ...
s that effectively tied employees to their companies in other states, allowing California workers to freely apply the knowledge they gained from their previous employer. This gave Silicon Valley an advantage over other American tech hubs such as
Massachusetts Route 128 curving around
Boston
Boston is the capital and most populous city in the Commonwealth (U.S. state), Commonwealth of Massachusetts in the United States. The city serves as the cultural and Financial centre, financial center of New England, a region of the Northeas ...
.
Early military origins

The San Francisco Bay Area had long been a major site of
United States Navy
The United States Navy (USN) is the naval warfare, maritime military branch, service branch of the United States Department of Defense. It is the world's most powerful navy with the largest Displacement (ship), displacement, at 4.5 millio ...
research and technology. In 1909,
Charles Herrold started the first
radio station
Radio broadcasting is the broadcasting of audio (sound), sometimes with related metadata, by radio waves to radio receivers belonging to a public audience. In terrestrial radio broadcasting the radio waves are broadcast by a land-based rad ...
in the United States with regularly scheduled programming in
San Jose. Later that year, Stanford University graduate
Cyril Elwell purchased the U.S. patents for
Poulsen arc radio transmission technology and founded the Federal Telegraph Corporation (FTC) in
Palo Alto
Palo Alto ( ; Spanish language, Spanish for ) is a charter city in northwestern Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree known as El Palo Alto.
Th ...
. Over the next decade, the FTC created the world's first global radio communication system, and signed a contract with the Navy in 1912.
In 1933,
Air Base Sunnyvale, California, was commissioned by the
United States Government
The Federal Government of the United States of America (U.S. federal government or U.S. government) is the Federation#Federal governments, national government of the United States.
The U.S. federal government is composed of three distinct ...
for use as a Naval Air Station (NAS) to house the airship ''
USS Macon'' in
Hangar One. The station was renamed NAS
Moffett Field, and between 1933 and 1947, U.S. Navy blimps were based there. A number of technology firms had set up shop in the area around Moffett Field to serve the Navy. When the Navy gave up its airship ambitions and moved most of its west coast operations to
San Diego
San Diego ( , ) is a city on the Pacific coast of Southern California, adjacent to the Mexico–United States border. With a population of over 1.4 million, it is the List of United States cities by population, eighth-most populous city in t ...
, the
National Advisory Committee for Aeronautics
The National Advisory Committee for Aeronautics (NACA) was a United States federal agency that was founded on March 3, 1915, to undertake, promote, and institutionalize aeronautical research. On October 1, 1958, the agency was dissolved and its ...
(NACA, forerunner of
NASA
The National Aeronautics and Space Administration (NASA ) is an independent agencies of the United States government, independent agency of the federal government of the United States, US federal government responsible for the United States ...
) took over portions of Moffett Field for
aeronautics
Aeronautics is the science or art involved with the study, design process, design, and manufacturing of air flight-capable machines, and the techniques of operating aircraft and rockets within the atmosphere.
While the term originally referred ...
research. Many of the original companies stayed, while new ones moved in. The immediate area was soon filled with
aerospace
Aerospace is a term used to collectively refer to the atmosphere and outer space. Aerospace activity is very diverse, with a multitude of commercial, industrial, and military applications. Aerospace engineering consists of aeronautics and astron ...
firms, such as
Lockheed, which was the area's largest employer from the 1950s into 1980s.
Role of Stanford University
Stanford University
Leland Stanford Junior University, commonly referred to as Stanford University, is a Private university, private research university in Stanford, California, United States. It was founded in 1885 by railroad magnate Leland Stanford (the eighth ...
, its affiliates, and graduates have played a major role in the development of the culture of collaboration among high-tech companies.
A powerful sense of regional solidarity shaped the outlook of inventors and engineers in California; contrasting markedly from the insular and competitive environment of engineering firms on the
East Coast of the United States
The East Coast of the United States, also known as the Eastern Seaboard, the Atlantic Coast, and the Atlantic Seaboard, is the region encompassing the coast, coastline where the Eastern United States meets the Atlantic Ocean; it has always pla ...
.
[ From the 1890s, Stanford University's ]leader
Leadership, is defined as the ability of an individual, group, or organization to "", influence, or guide other individuals, teams, or organizations.
"Leadership" is a contested term. Specialist literature debates various viewpoints on the co ...
s saw its mission as service to the (American) West and shaped the school accordingly. At the same time, the perceived exploitation of the West at the hands of eastern interests fueled booster-like attempts to build self-sufficient local industry. Thus regionalism helped align Stanford's interests with those of the area's high-tech firms.
Frederick Terman, as Stanford University's dean of the school of engineering from 1946, encouraged faculty and graduates to start their own companies. In 1951 Terman spearheaded the formation of Stanford Industrial Park (now Stanford Research Park
Stanford Research Park (SRP) is a technology park established in 1951 as a joint initiative between Stanford University and the Palo Alto, California, City of Palo Alto. It was the world's first university research park. It has more than 150 com ...
, an area surrounding Page Mill Road, south west of El Camino Real and extending beyond Foothill Expressway
There are 21 routes assigned to the "G" zone of the California Route Marker Program, which designates county routes in California. The "G" zone includes county highways in Monterey County, California, Monterey, San Benito County, California, Sa ...
to Arastradero Road), where the university leased portions of its land to high-tech firms. Terman nurtured companies like Hewlett-Packard
The Hewlett-Packard Company, commonly shortened to Hewlett-Packard ( ) or HP, was an American multinational information technology company. It was founded by Bill Hewlett and David Packard in 1939 in a one-car garage in Palo Alto, California ...
, Varian Associates
Varian Associates was one of the first high-tech companies in Silicon Valley. It was founded in 1948 by Russell H. and Sigurd F. Varian, William Webster Hansen, and Edward Ginzton to sell the klystron, the first vacuum tube which could amp ...
, Eastman Kodak
The Eastman Kodak Company, referred to simply as Kodak (), is an American public company that produces various products related to its historic basis in film photography. The company is headquartered in Rochester, New York, and is incorporated i ...
, General Electric
General Electric Company (GE) was an American Multinational corporation, multinational Conglomerate (company), conglomerate founded in 1892, incorporated in the New York (state), state of New York and headquartered in Boston.
Over the year ...
, Lockheed Corporation
The Lockheed Corporation was an American aerospace manufacturer. Lockheed was founded in 1926 and merged in 1995 with Martin Marietta to form Lockheed Martin. Its founder, Allan Lockheed, had earlier founded the similarly named but otherwise-u ...
, and other high-tech firms, until what would become Silicon Valley grew up around the Stanford University campus.
In 1951, to address the financial demands of Stanford's growth requirements, and to provide local employment-opportunities for graduating students, Frederick Terman proposed leasing Stanford's lands for use as an office park named the Stanford Industrial Park (later Stanford Research Park
Stanford Research Park (SRP) is a technology park established in 1951 as a joint initiative between Stanford University and the Palo Alto, California, City of Palo Alto. It was the world's first university research park. It has more than 150 com ...
). Terman invited only high-technology companies. The first tenant was Varian Associates
Varian Associates was one of the first high-tech companies in Silicon Valley. It was founded in 1948 by Russell H. and Sigurd F. Varian, William Webster Hansen, and Edward Ginzton to sell the klystron, the first vacuum tube which could amp ...
, founded by Stanford alumni in the 1930s to build military-radar components. Terman also found venture capital
Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
for civilian-technology start-ups. Hewlett-Packard
The Hewlett-Packard Company, commonly shortened to Hewlett-Packard ( ) or HP, was an American multinational information technology company. It was founded by Bill Hewlett and David Packard in 1939 in a one-car garage in Palo Alto, California ...
became one of the major success-stories. Founded in 1939 in Packard's garage by Stanford graduates Bill Hewlett
William Redington Hewlett ( ; May 20, 1913 – January 12, 2001) was an American engineer and the co-founder, with David Packard, of the Hewlett-Packard, Hewlett-Packard Company (HP).
Early life and education
Hewlett was born in Ann Arbor, Mic ...
and David Packard, Hewlett-Packard moved its offices into the Stanford Research Park shortly after 1953. In 1954 Stanford originated the Honors Cooperative Program to allow full-time employees of the companies to pursue graduate degrees from the university on a part-time basis. The initial companies signed five-year agreements in which they would pay double the tuition for each student in order to cover the costs. Hewlett-Packard has become the largest personal-computer manufacturer in the world, and transformed the home-printing market when it released the first thermal drop-on-demand ink-jet printer in 1984. Other early tenants included Eastman Kodak
The Eastman Kodak Company, referred to simply as Kodak (), is an American public company that produces various products related to its historic basis in film photography. The company is headquartered in Rochester, New York, and is incorporated i ...
, General Electric
General Electric Company (GE) was an American Multinational corporation, multinational Conglomerate (company), conglomerate founded in 1892, incorporated in the New York (state), state of New York and headquartered in Boston.
Over the year ...
, and Lockheed.
Rise of Silicon
In 1956, William Shockley
William Bradford Shockley ( ; February 13, 1910 – August 12, 1989) was an American solid-state physicist, electrical engineer, and inventor. He was the manager of a research group at Bell Labs that included John Bardeen and Walter Houser Brat ...
, the co-inventor of the first working transistor
A transistor is a semiconductor device used to Electronic amplifier, amplify or electronic switch, switch electrical signals and electric power, power. It is one of the basic building blocks of modern electronics. It is composed of semicondu ...
(with John Bardeen
John Bardeen (; May 23, 1908 – January 30, 1991) was an American solid-state physicist. He is the only person to be awarded the Nobel Prize in Physics twice: first in 1956 with William Shockley and Walter Houser Brattain for their inventio ...
and Walter Houser Brattain), moved from New Jersey
New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
to Mountain View, California
Mountain View is a city in Santa Clara County, California, United States, part of the San Francisco Bay Area. Named for its views of the Santa Cruz Mountains, the population was 82,376 at the 2020 United States census, 2020 census.
Mountain V ...
, to start Shockley Semiconductor Laboratory to live closer to his ailing mother May in Palo Alto
Palo Alto ( ; Spanish language, Spanish for ) is a charter city in northwestern Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree known as El Palo Alto.
Th ...
. Shockley's work served as the basis for many electronic developments for decades. Both Frederick Terman and William Shockley
William Bradford Shockley ( ; February 13, 1910 – August 12, 1989) was an American solid-state physicist, electrical engineer, and inventor. He was the manager of a research group at Bell Labs that included John Bardeen and Walter Houser Brat ...
are often called "the father of Silicon Valley". Unlike many other researchers who used germanium as the semiconductor material, Shockley believed that silicon
Silicon is a chemical element; it has symbol Si and atomic number 14. It is a hard, brittle crystalline solid with a blue-grey metallic lustre, and is a tetravalent metalloid (sometimes considered a non-metal) and semiconductor. It is a membe ...
was the better material for making transistors. Shockley intended to replace the current transistor with a new three-element design (today known as the Shockley diode), but the design was considerably more difficult to build than the "simple" transistor. In 1957, Shockley decided to end research on the silicon transistor. As a result of Shockley's abusive management style, eight engineers left the company to form Fairchild Semiconductor; Shockley referred to them as the " traitorous eight". Two of the original employees of Fairchild Semiconductor, Robert Noyce
Robert Norton Noyce (December 12, 1927 – June 3, 1990), nicknamed "the Mayor of Silicon Valley", was an American physicist and entrepreneur who co-founded Fairchild Semiconductor in 1957 and Intel Corporation in 1968. He was also credited w ...
and Gordon Moore, would go on to found Intel
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, and Delaware General Corporation Law, incorporated in Delaware. Intel designs, manufactures, and sells computer compo ...
.
Following the 1959 inventions of the monolithic integrated circuit
An integrated circuit (IC), also known as a microchip or simply chip, is a set of electronic circuits, consisting of various electronic components (such as transistors, resistors, and capacitors) and their interconnections. These components a ...
(IC) chip by Robert Noyce
Robert Norton Noyce (December 12, 1927 – June 3, 1990), nicknamed "the Mayor of Silicon Valley", was an American physicist and entrepreneur who co-founded Fairchild Semiconductor in 1957 and Intel Corporation in 1968. He was also credited w ...
at Fairchild, the first commercial MOS IC was introduced by General Microelectronics in 1964. The first single-chip microprocessor was the Intel 4004
The Intel 4004 was part of the 4 chip MCS-4 micro computer set, released by the Intel, Intel Corporation in November 1971; the 4004 being part of the first commercially marketed microprocessor chipset, and the first in a long line of List of I ...
, designed and realized by Federico Faggin
Federico Faggin (, ; born 1 December 1941) is an Italian-American physicist, engineer, inventor and entrepreneur. He is best known for designing the first commercial microprocessor, the Intel 4004. He led the 4004 (MCS-4) project and the desig ...
along with Ted Hoff, Masatoshi Shima and Stanley Mazor at Intel in 1971.Federico Faggin
Federico Faggin (, ; born 1 December 1941) is an Italian-American physicist, engineer, inventor and entrepreneur. He is best known for designing the first commercial microprocessor, the Intel 4004. He led the 4004 (MCS-4) project and the desig ...
The Making of the First Microprocessor
''IEEE Solid-State Circuits Magazine'', Winter 2009, IEEE Xplore
IEEE Xplore (stylized as IEEE ''Xplore'') digital library is a research database for discovery and access to journal articles, conference proceedings, technical standards, and related materials on computer science, electrical engineering and elec ...
In April 1974, Intel
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, and Delaware General Corporation Law, incorporated in Delaware. Intel designs, manufactures, and sells computer compo ...
released the Intel 8080, the second 8-bit microprocessor designed and manufactured by Intel
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, and Delaware General Corporation Law, incorporated in Delaware. Intel designs, manufactures, and sells computer compo ...
.['' Electronic News'' was a weekly trade newspaper. The same advertisement appeared in the May 2, 1974, issue of ''Electronics'' magazine.]
Origins of the Internet
On April 23, 1963, J. C. R. Licklider, the first director of the Information Processing Techniques Office (IPTO) at The Pentagon
The Pentagon is the headquarters building of the United States Department of Defense, in Arlington County, Virginia, across the Potomac River from Washington, D.C. The building was constructed on an accelerated schedule during World War II. As ...
's ARPA issued an office memorandum addressed to Members and Affiliates of the Intergalactic Computer Network. It rescheduled a meeting in Palo Alto
Palo Alto ( ; Spanish language, Spanish for ) is a charter city in northwestern Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree known as El Palo Alto.
Th ...
regarding his vision of a computer network, which he imagined as an electronic commons open to all, the main and essential medium of informational interaction for governments, institutions, corporations, and individuals. As head of IPTO from 1962 to 1964, "Licklider initiated three of the most important developments in information technology: the creation of computer science departments at several major universities, time-sharing, and networking." In 1969, the Stanford Research Institute
SRI International (SRI) is a nonprofit organization, nonprofit scientific research, scientific research institute and organization headquartered in Menlo Park, California, United States. It was established in 1946 by trustees of Stanford Univer ...
(now SRI International), operated one of the four original nodes that comprised ARPANET
The Advanced Research Projects Agency Network (ARPANET) was the first wide-area packet-switched network with distributed control and one of the first computer networks to implement the TCP/IP protocol suite. Both technologies became the tec ...
, predecessor to the Internet
The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...
.
Emergence of venture capital
By the early 1970s, there were many semiconductor
A semiconductor is a material with electrical conductivity between that of a conductor and an insulator. Its conductivity can be modified by adding impurities (" doping") to its crystal structure. When two regions with different doping level ...
companies in the area, computer
A computer is a machine that can be Computer programming, programmed to automatically Execution (computing), carry out sequences of arithmetic or logical operations (''computation''). Modern digital electronic computers can perform generic set ...
firms using their devices, and programming and service companies serving both. Industrial space was plentiful and housing was still inexpensive. Growth during this era was fueled by the emergence of venture capital
Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...
on Sand Hill Road, beginning with Kleiner Perkins and Sequoia Capital in 1972; the availability of venture capital exploded after the successful $1.3 billion IPO of Apple Computer
Apple Inc. is an American multinational corporation and technology company headquartered in Cupertino, California, in Silicon Valley. It is best known for its consumer electronics, software, and services. Founded in 1976 as Apple Computer Co ...
in December 1980. Since the 1980s, Silicon Valley has been home to the largest concentration of venture capital firms in the world.
In 1971, Don Hoefler traced the origins of Silicon Valley firms, including via investments from Fairchild Fairchild may refer to:
Organizations
* Fairchild Aerial Surveys, operated in cooperation with a subsidiary of Fairey Aviation Company
* Fairchild Camera and Instrument
* List of Sherman Fairchild companies, "Fairchild" companies
* Fairchild ...
's eight co-founders.[A Legal Bridge Spanning 100 Years: From the Gold Mines of El Dorado to the "Golden" Startups of Silicon Valley](_blank)
by Gregory Gromov The key investors in Kleiner Perkins and Sequoia Capital were from the same group, directly leading to '' Tech Crunch'' 2014 estimate of 92 public firms of 130 related listed firms then worth over US$2.1 trillion with over 2,000 firms traced back to them.
Banking
Another important pillar of the Valley's success was Silicon Valley Bank (SVB), founded in 1983 by a group of former Bank of America
The Bank of America Corporation (Bank of America) (often abbreviated BofA or BoA) is an American multinational investment banking, investment bank and financial services holding company headquartered at the Bank of America Corporate Center in ...
executives. Before its 2023 collapse, SVB specialized in providing banking services to Silicon Valley entrepreneurs and their startup firms. SVB's original primary commercial lending product was a working capital
Working capital (WC) is a financial metric which represents operating liquidity available to a business, organisation, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is consi ...
line of credit
A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds. A financial institution ...
, secured by a startup's accounts receivable
Accounts receivable, abbreviated as AR or A/R, are legally enforceable claims for payment held by a business for goods supplied or services rendered that customers have ordered but not paid for. The accounts receivable process involves customer on ...
. In contrast to traditional banks, who focused their commercial lending on already-established businesses, SVB specialized in lending money to small startup companies in the "preprofit" stage.
Lawyers and law firms
Prior to 1970, most Northern California lawyer
A lawyer is a person who is qualified to offer advice about the law, draft legal documents, or represent individuals in legal matters.
The exact nature of a lawyer's work varies depending on the legal jurisdiction and the legal system, as w ...
s were based in San Francisco, especially the experienced patent attorneys whom the high-tech industry needed to protect its intellectual property. During the 1970s, lawyers began to follow venture capitalists down the Peninsula
A peninsula is a landform that extends from a mainland and is only connected to land on one side. Peninsulas exist on each continent. The largest peninsula in the world is the Arabian Peninsula.
Etymology
The word ''peninsula'' derives , . T ...
to serve the booming high-tech industry in Silicon Valley. As of 1999, there were 2,400 lawyers practicing law in Palo Alto, a city of only 50,000 people, "the densest concentration of lawyers" in the United States outside of Washington, D.C.
By the year 2000, large law firm
A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise consumer, clients (individuals or corporations) about their legal rights and Obligation, respon ...
s from all over the world were rushing to establish offices in the mid-Peninsula region on or near Sand Hill Road, and Silicon Valley law firms had become global trendsetters in that they were the first legal services employers to adopt business casual apparel (in imitation of their startup clients). During this era, lawyers evolved from their relatively narrow conventional role as protectors of intellectual property into business advisers, intermediaries, and dealmakers, and thereby acquired great prominence in Silicon Valley. For young entrepreneurs new to the Valley's mysterious ways, their lawyer often served as their first coach, mentor, teacher, friend, and cheerleader who helped connect them to the Valley's startup ecosystem.
As of 2023, the San Jose-Sunnyvale-Santa Clara metropolitan area had the highest average wage for lawyers in the United States, at $268,570. '' Above the Law'' occasionally publishes lists of top-performing Silicon Valley law firms, which it calls the "white sandal elite", a parody of the " white-shoe firm" descriptor traditionally applied to certain East Coast professional services firms.
Rise of computer culture
The Homebrew Computer Club
The Homebrew Computer Club was an early computer hobbyist group in Menlo Park, California, which met from March 1975 to December 1986. The club had an influential role in the development of the microcomputer revolution and the rise of that aspec ...
was an informal group of electronic enthusiasts and technically minded hobbyists who gathered to trade parts, circuits, and information pertaining to DIY construction of computing devices. It was started by Gordon French and Fred Moore who met at the Community Computer Center in Menlo Park. They both were interested in maintaining a regular, open forum for people to get together to work on making computers more accessible to everyone.
The first meeting was held as of March 1975 at French's garage in Menlo Park, San Mateo County, California; which was on occasion of the arrival of the MITS Altair
Altair is the brightest star in the constellation of Aquila (constellation), Aquila and the list of brightest stars, twelfth-brightest star in the night sky. It has the Bayer designation Alpha Aquilae, which is Latinisation of name ...
microcomputer, the first unit sent to the area for review by People's Computer Company. Steve Wozniak and Steve Jobs
Steven Paul Jobs (February 24, 1955 – October 5, 2011) was an American businessman, inventor, and investor best known for co-founding the technology company Apple Inc. Jobs was also the founder of NeXT and chairman and majority shareholder o ...
credit that first meeting with inspiring them to design the original Apple I and (successor) Apple II
Apple II ("apple Roman numerals, two", stylized as Apple ][) is a series of microcomputers manufactured by Apple Computer, Inc. from 1977 to 1993. The Apple II (original), original Apple II model, which gave the series its name, was designed ...
computers. As a result, the first preview of the Apple I was given at the Homebrew Computer Club. Subsequent meetings were held at an auditorium at the SLAC National Accelerator Laboratory, Stanford Linear Accelerator Center.
Advent of software
Although semiconductors are still a major component of the area's economy, Silicon Valley has been most famous in recent years for innovations in software and Internet
The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...
services. Silicon Valley has significantly influenced computer operating systems, software
Software consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications.
The history of software is closely tied to the development of digital comput ...
, and user interfaces. Using money from NASA
The National Aeronautics and Space Administration (NASA ) is an independent agencies of the United States government, independent agency of the federal government of the United States, US federal government responsible for the United States ...
, the US Air Force
The United States Air Force (USAF) is the Air force, air service branch of the United States Department of Defense. It is one of the six United States Armed Forces and one of the eight uniformed services of the United States. Tracing its ori ...
, and ARPA, Douglas Engelbart invented the mouse
A mouse (: mice) is a small rodent. Characteristically, mice are known to have a pointed snout, small rounded ears, a body-length scaly tail, and a high breeding rate. The best known mouse species is the common house mouse (''Mus musculus'' ...
and hypertext-based collaboration tools in the mid-1960s and 1970s while at Stanford Research Institute
SRI International (SRI) is a nonprofit organization, nonprofit scientific research, scientific research institute and organization headquartered in Menlo Park, California, United States. It was established in 1946 by trustees of Stanford Univer ...
(now SRI International), first publicly demonstrated in 1968 in what is now known as The Mother of All Demos.
Engelbart's Augmentation Research Center
SRI International's Augmentation Research Center (ARC) was founded in the 1960s by electrical engineer Douglas Engelbart to develop and experiment with new tools and techniques for collaboration and information processing.
The main product to ...
at SRI was also involved in launching the ARPANET
The Advanced Research Projects Agency Network (ARPANET) was the first wide-area packet-switched network with distributed control and one of the first computer networks to implement the TCP/IP protocol suite. Both technologies became the tec ...
(precursor to the Internet
The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...
) and starting the Network Information Center (now InterNIC
InterNIC, known as the Network Information Center (NIC) until 1993, was the organization primarily responsible for Domain Name System (DNS) domain name allocations and X.500 directory services. From its inception in 1972 until October 1, 1991 ...
). Xerox
Xerox Holdings Corporation (, ) is an American corporation that sells print and electronic document, digital document products and services in more than 160 countries. Xerox was the pioneer of the photocopier market, beginning with the introduc ...
hired some of Engelbart's best researchers beginning in the early 1970s. In turn, in the 1970s and 1980s, Xerox's Palo Alto Research Center (PARC) played a pivotal role in object-oriented programming, graphical user interface
A graphical user interface, or GUI, is a form of user interface that allows user (computing), users to human–computer interaction, interact with electronic devices through Graphics, graphical icon (computing), icons and visual indicators such ...
s (GUIs), Ethernet
Ethernet ( ) is a family of wired computer networking technologies commonly used in local area networks (LAN), metropolitan area networks (MAN) and wide area networks (WAN). It was commercially introduced in 1980 and first standardized in 198 ...
, PostScript
PostScript (PS) is a page description language and dynamically typed, stack-based programming language. It is most commonly used in the electronic publishing and desktop publishing realm, but as a Turing complete programming language, it c ...
, and laser printer
Laser printing is an electrostatic digital printing process. It produces high-quality text and graphics (and moderate-quality photographs) by repeatedly passing a laser beam back and forth over a Electric charge, negatively charged cylinder call ...
s.
While Xerox marketed equipment using its technologies, for the most part its technologies flourished elsewhere. The diaspora of Xerox inventions led directly to 3Com and Adobe Systems
Adobe Inc. ( ), formerly Adobe Systems Incorporated, is an American software, computer software company based in San Jose, California. It offers a wide range of programs from web design tools, photo manipulation and vector creation, through to ...
, and indirectly to Cisco
Cisco Systems, Inc. (using the trademark Cisco) is an American multinational digital communications technology conglomerate corporation headquartered in San Jose, California. Cisco develops, manufactures, and sells networking hardware, s ...
, Apple Computer
Apple Inc. is an American multinational corporation and technology company headquartered in Cupertino, California, in Silicon Valley. It is best known for its consumer electronics, software, and services. Founded in 1976 as Apple Computer Co ...
, and Microsoft
Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
. Apple's Macintosh
Mac is a brand of personal computers designed and marketed by Apple Inc., Apple since 1984. The name is short for Macintosh (its official name until 1999), a reference to the McIntosh (apple), McIntosh apple. The current product lineup inclu ...
GUI was largely a result of Steve Jobs
Steven Paul Jobs (February 24, 1955 – October 5, 2011) was an American businessman, inventor, and investor best known for co-founding the technology company Apple Inc. Jobs was also the founder of NeXT and chairman and majority shareholder o ...
' visit to PARC and the subsequent hiring of key personnel. Cisco's impetus stemmed from the need to route a variety of protocols over Stanford University
Leland Stanford Junior University, commonly referred to as Stanford University, is a Private university, private research university in Stanford, California, United States. It was founded in 1885 by railroad magnate Leland Stanford (the eighth ...
's Ethernet
Ethernet ( ) is a family of wired computer networking technologies commonly used in local area networks (LAN), metropolitan area networks (MAN) and wide area networks (WAN). It was commercially introduced in 1980 and first standardized in 198 ...
campus network.
Internet age
Commercial use of the Internet became practical and grew slowly throughout the early 1990s. In 1995, commercial use of the Internet
The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...
grew substantially and the initial wave of internet startups, Amazon.com, eBay
eBay Inc. ( , often stylized as ebay) is an American multinational e-commerce company based in San Jose, California, that allows users to buy or view items via retail sales through online marketplaces and websites in 190 markets worldwide. ...
, and the predecessor to Craigslist began operations. Silicon Valley is generally considered to have been the center of the dot-com bubble
The dot-com bubble (or dot-com boom) was a stock market bubble that ballooned during the late-1990s and peaked on Friday, March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Interne ...
, which started in the mid-1990s and collapsed after the NASDAQ stock market began to decline dramatically in April 2000. During the bubble era, real estate prices reached unprecedented levels. For a brief time, Sand Hill Road was home to the most expensive commercial real estate in the world, and the booming economy resulted in severe traffic congestion.
The PayPal Mafia is sometimes credited with inspiring the re-emergence of consumer-focused Internet companies after the dot-com bust of 2001. After the dot-com crash, Silicon Valley continues to maintain its status as one of the top research and development centers in the world. A 2006 ''The Wall Street Journal
''The Wall Street Journal'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...
'' story found that 12 of the 20 most inventive towns in America were in California, and 10 of those were in Silicon Valley. San Jose led the list with 3,867 utility patents filed in 2005, and number two was Sunnyvale, at 1,881 utility patents. Silicon Valley is also home to a significant number of "Unicorn
The unicorn is a legendary creature that has been described since Classical antiquity, antiquity as a beast with a single large, pointed, spiraling horn (anatomy), horn projecting from its forehead.
In European literature and art, the unico ...
" ventures, referring to startup companies whose valuation has exceeded $1 billion dollars.
Economy
A world-renowned technology hub, San Francisco Bay Area
The San Francisco Bay Area, commonly known as the Bay Area, is a List of regions of California, region of California surrounding and including San Francisco Bay, and anchored by the cities of Oakland, San Francisco, and San Jose, California, S ...
has the largest concentration of high-tech companies in the United States, at 387,000 high-tech jobs, of which Silicon Valley accounts for 225,300 high-tech jobs. Silicon Valley has the highest concentration of high-tech workers of any metropolitan area, with 285.9 out of every 1,000 private-sector workers. Silicon Valley has the highest average high-tech salary in the United States at $144,800. Largely a result of the high technology sector, the San Jose-Sunnyvale-Santa Clara, CA Metropolitan Statistical Area has the most millionaires and the most billionaires in the United States per capita, although the venture capital ecosystem has grown more geographically decentralized over time.
The region is the biggest high-tech manufacturing center in the United States. The unemployment rate
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is the proportion of people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work d ...
of the region was 9.4% in January 2009 and has decreased to a record low of 2.7% as of August 2019. But in April 2020, when unemployment was at its peak, it stood at 13.7% and has since fallen to 5.7% in July 2021. Silicon Valley received 41% of all U.S. venture investment in 2011, and 46% in 2012. During the period from 2019 to 2021, Silicon Valley's share of U.S. venture capital investment dropped to 35.9%, but had surged back to 41% as of the first quarter of 2023.
More traditional industries also recognize the potential of high-tech development, and several car manufacturers have opened offices in Silicon Valley to capitalize on its entrepreneurial ecosystem. Manufacture of transistor
A transistor is a semiconductor device used to Electronic amplifier, amplify or electronic switch, switch electrical signals and electric power, power. It is one of the basic building blocks of modern electronics. It is composed of semicondu ...
s was for a long time the core industry in Silicon Valley. The workforce was for the most part composed of Asian and Latino immigrants who were paid low wages and worked in hazardous conditions due to the chemicals used in the manufacture of integrated circuit
An integrated circuit (IC), also known as a microchip or simply chip, is a set of electronic circuits, consisting of various electronic components (such as transistors, resistors, and capacitors) and their interconnections. These components a ...
s. Technical, engineering, design, and administrative staffs were in large part well compensated.
File:Google Campus, Mountain View, CA.jpg, Googleplex in Mountain View
File:Facebook Campus, Menlo Park, CA.jpg, Meta Platforms
Meta Platforms, Inc. is an American multinational technology company headquartered in Menlo Park, California. Meta owns and operates several prominent social media platforms and communication services, including Facebook, Instagram, Threads ...
in Menlo Park
File:2788-2888 San Tomas Expwy.jpg, Nvidia
Nvidia Corporation ( ) is an American multinational corporation and technology company headquartered in Santa Clara, California, and incorporated in Delaware. Founded in 1993 by Jensen Huang (president and CEO), Chris Malachowsky, and Curti ...
in Santa Clara
File:Intel HQ.jpg, Intel
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, and Delaware General Corporation Law, incorporated in Delaware. Intel designs, manufactures, and sells computer compo ...
in Santa Clara
File:2485 Augustine Drive headquarters in Santa Clara, California.jpg, AMD in Santa Clara
File:101 Albright Way.jpg, Netflix
Netflix is an American subscription video on-demand over-the-top streaming service. The service primarily distributes original and acquired films and television shows from various genres, and it is available internationally in multiple lang ...
in Los Gatos
Housing
Silicon Valley has a severe housing shortage, caused by the market imbalance between jobs created and housing units built: from 2010 to 2015, many more jobs have been created than housing units built. (400,000 jobs, 60,000 housing units) This shortage has driven home prices extremely high, far out of the range of production workers. As of 2016 a two-bedroom apartment rented for about $2,500 while the median home price was about $1 million. The '' Financial Post'' called Silicon Valley the most expensive U.S. housing region. Homelessness
Homelessness, also known as houselessness or being unhoused or unsheltered, is the condition of lacking stable, safe, and functional housing. It includes living on the streets, moving between temporary accommodation with family or friends, liv ...
is a problem with housing beyond the reach of middle-income residents; there is little shelter space other than in San Jose which, as of 2015, was making an effort to develop shelters by renovating old hotels.
''The Economist
''The Economist'' is a British newspaper published weekly in printed magazine format and daily on Electronic publishing, digital platforms. It publishes stories on topics that include economics, business, geopolitics, technology and culture. M ...
'' also attributes the high cost of living to the success of the industries in this region. Although, this rift between high and low salaries is driving many residents out who can no longer afford to live there. In the Bay Area
The San Francisco Bay Area, commonly known as the Bay Area, is a region of California surrounding and including San Francisco Bay, and anchored by the cities of Oakland, San Francisco, and San Jose. The Association of Bay Area Governments ...
, the number of residents planning to leave within the next several years has had an increase of 35% since 2016, from 34% to 46%.
Wealth
The wealth inequality in Silicon Valley is more pronounced than in any other region of the United States. A 2023 report found that the aggregate household wealth of Silicon Valley (including ultra-high net worth individuals) was nearly $1.1 trillion, and less than 1% of the Valley's population held 36% of the wealth. Conversely, as of 2021, 23% of Silicon Valley residents were living below the poverty line. However, the meaning of the term "poverty" is dependent upon context; in Silicon Valley, it means something different because of the region's severe housing shortage and high housing prices. As of 2023, the low-income poverty threshold
The poverty threshold, poverty limit, poverty line, or breadline is the minimum level of income deemed adequate in a particular country. The poverty line is usually calculated by estimating the total cost of one year's worth of necessities for ...
set by the California Department of Housing and Community Development for single-person households in the counties of San Francisco, San Mateo, and Marin was $104,400, followed by $96,000 for the county of Santa Clara. In contrast, the 2023 national low-income poverty threshold set by the U.S. Census Bureau for a single-person household was $14,891.
Notable companies
Thousands of high technology
High technology (high tech or high-tech), also known as advanced technology (advanced tech) or exotechnology, is technology that is at the cutting edge: the highest form of technology available. It can be defined as either the most complex or ...
companies are headquartered in Silicon Valley. Among those, the following are in the Fortune 1000:
Additional notable companies headquartered in Silicon Valley (some of which are defunct, subsumed, or relocated) include:
Demographics
Silicon Valley has a population of 3.1 million as of 2020. A 1999 study by AnnaLee Saxenian for the Public Policy Institute of California reported that a third of Silicon Valley scientists and engineers were immigrants and that nearly a quarter of Silicon Valley's high-technology firms since 1980 were run by Chinese (17 percent) or Indian descent CEOs (7 percent). In addition, Saxenian's study found that successful immigrant entrepreneurs relied heavily on ethnic resources as they integrated into the Silicon Valley work culture and American society. There is a stratum of well-compensated technical employees and managers, including tens of thousands of "single-digit millionaires". This income and range of assets will support a middle-class lifestyle in Silicon Valley.
Gender
In November 2006, the University of California, Davis
The University of California, Davis (UC Davis, UCD, or Davis) is a Public university, public Land-grant university, land-grant research university in Davis, California, United States. It is the northernmost of the ten campuses of the University ...
released a report analyzing business leadership by women within the state. The report showed that although 103 of the 400 largest public companies headquartered in California were located in Santa Clara County (the most of all counties), only 8.8% of Silicon Valley companies had women CEOs. This was the lowest percentage in the state. (San Francisco County had 19.2% and Marin County had 18.5%.)
Silicon Valley tech leadership positions are occupied almost exclusively by men. This is also represented in the number of new companies founded by women as well as the number of women-lead startups that receive venture capital funding. Wadhwa said he believes that a contributing factor is a lack of parental encouragement to study science and engineering. He also cited a lack of women role models and noted that most famous tech leaders—like Bill Gates
William Henry Gates III (born October 28, 1955) is an American businessman and philanthropist. A pioneer of the microcomputer revolution of the 1970s and 1980s, he co-founded the software company Microsoft in 1975 with his childhood friend ...
, Steve Jobs
Steven Paul Jobs (February 24, 1955 – October 5, 2011) was an American businessman, inventor, and investor best known for co-founding the technology company Apple Inc. Jobs was also the founder of NeXT and chairman and majority shareholder o ...
, and Mark Zuckerberg—are men.
As of October 2014, some high-profile Silicon Valley firms were working actively to prepare and recruit women. ''Bloomberg
Bloomberg may refer to:
People
* Daniel J. Bloomberg (1905–1984), audio engineer
* Georgina Bloomberg (born 1983), professional equestrian
* Michael Bloomberg (born 1942), American businessman and founder of Bloomberg L.P.; politician a ...
'' reported that Apple, Facebook, Google, and Microsoft attended the 20th annual Grace Hopper Celebration of Women in Computing conference to actively recruit and potentially hire female engineers and technology experts. The same month, the second annual Platform Summit was held to discuss increasing racial and gender diversity in tech. As of April 2015 experienced women were engaged in creation of venture capital firms which leveraged women's perspectives in funding of startups.
After UC Davis published its ''Study of California Women Business Leaders'' in November 2006, some ''San Jose Mercury News
''The Mercury News'' (formerly ''San Jose Mercury News'', often locally known as ''The Merc'') is a morning daily newspaper published in San Jose, California, in the San Francisco Bay Area. It is published by the Bay Area News Group, a subsidia ...
'' readers dismissed the possibility that sexism contributed in making Silicon Valley's leadership gender gap the highest in the state. A January 2015 issue of ''Newsweek
''Newsweek'' is an American weekly news magazine based in New York City. Founded as a weekly print magazine in 1933, it was widely distributed during the 20th century and has had many notable editors-in-chief. It is currently co-owned by Dev P ...
'' magazine featured an article detailing reports of sexism and misogyny in Silicon Valley. The article's author, Nina Burleigh, asked, "Where were all these offended people when women like Heidi Roizen
Heidi Roizen (born 1958) is a Silicon Valley executive, venture capitalist, and entrepreneur.
She is known for speaking out against the Sexism in the technology industry, harassment of women in technology, having herself received harassment in t ...
published accounts of having a venture capitalist stick her hand in his pants under a table while a deal was being discussed?" Silicon Valley firms' board of directors are composed of 15.7% women compared with 20.9% in the S&P 100.
The 2012 lawsuit '' Pao v. Kleiner Perkins'' was filed in San Francisco County Superior Court by executive Ellen Pao for gender discrimination against her employer, Kleiner Perkins. The case went to trial in February 2015. On March 27, 2015, the jury found in favor of Kleiner Perkins on all counts. Nevertheless, the case, which had wide press coverage, resulted in major advances in consciousness of gender discrimination on the part of venture capital and technology firms and their women employees. Two other cases have been filed against Facebook and Twitter.
Race
A 2017 study showed that white
White is the lightest color and is achromatic (having no chroma). It is the color of objects such as snow, chalk, and milk, and is the opposite of black. White objects fully (or almost fully) reflect and scatter all the visible wa ...
males made up the majority of higher positions, with 58.7% holding executive positions and 46.5% being managers. The second highest position holders were Asian men, with 16.3% having executive positions and 17.9% being managers. African/Black and Hispanic/Latino people had the lowest percentages in all categories.
''Harvard Business Review
''Harvard Business Review'' (''HBR'') is a general management magazine published by Harvard Business Publishing, a not-for-profit, independent corporation that is an affiliate of Harvard Business School. ''HBR'' is published six times a year ...
'' published an article in 2018 discussing diversity and inclusion and gave statistics on black employees along with advice to future black technicians. LeRon L. Barton, a black man who spent over two decades in Tech, gave an insight on his work experiences. He said he saw no one who looked like him in his profession and said he received many comments that he believed disregarded his skill such as being called the diversity hire. He described being isolated from his team, and constantly having to prove he could do the job he was hired for.
Some of the most successful Black people in Silicon Valley include Roy Clay, the founder of Hewlett Packard's computing division who is considered the "Godfather of Silicon Valley"; Ken Coleman, the first Black recruiter at Hewlett and later an executive at Activision and Silicon Graphics; John W. Thompson, the first Black CEO of a major tech company, the enterprise security software provider Symantec, and the chairman of computing giant Microsoft replacing the founder Bill Gates; Robert F. Smith, former Goldman Sachs technology M&A banker and founder of software private equity firm Vista Equity Partners; Charles Phillips, President of Oracle and CEO of Infor who coined the term "enterprise software" during his time as a technology banker at Morgan Stanley with Frank Quattrone and Mary Meeker; and Stacy Brown-Philpot, the first Black female tech CEO at online marketplace TaskRabbit.
Late 2024 and early 2025 marked a shift in the discourse around DEI or diversity equity and inclusion initiatives in Silicon Valley. As many tech companies faced economic headwinds and pressure to reduce costs in the midst of falling valuations and rising interest rates, leading to widespread layoffs and budget scrutiny by investors, DEI programs were often the first thing out the door.
Statistics
In 2014, tech companies Google
Google LLC (, ) is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial ...
, Yahoo!
Yahoo (, styled yahoo''!'' in its logo) is an American web portal that provides the search engine Yahoo Search and related services including My Yahoo, Yahoo Mail, Yahoo News, Yahoo Finance, Yahoo Sports, y!entertainment, yahoo!life, and its a ...
, Facebook
Facebook is a social media and social networking service owned by the American technology conglomerate Meta Platforms, Meta. Created in 2004 by Mark Zuckerberg with four other Harvard College students and roommates, Eduardo Saverin, Andre ...
, Apple
An apple is a round, edible fruit produced by an apple tree (''Malus'' spp.). Fruit trees of the orchard or domestic apple (''Malus domestica''), the most widely grown in the genus, are agriculture, cultivated worldwide. The tree originated ...
, and others, released corporate transparency reports that offered detailed employee breakdowns. In May, Google
Google LLC (, ) is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial ...
said 17% of its tech employees worldwide were women, and, in the U.S., 1% of its tech workers were black
Black is a color that results from the absence or complete absorption of visible light. It is an achromatic color, without chroma, like white and grey. It is often used symbolically or figuratively to represent darkness.Eva Heller, ''P ...
and 2% were Hispanic/Latino. June 2014 brought reports from Yahoo! and Facebook. Yahoo!
Yahoo (, styled yahoo''!'' in its logo) is an American web portal that provides the search engine Yahoo Search and related services including My Yahoo, Yahoo Mail, Yahoo News, Yahoo Finance, Yahoo Sports, y!entertainment, yahoo!life, and its a ...
said that 15% of its tech jobs were held by women, 2% of its tech employees were black and 4% Hispanic. Facebook
Facebook is a social media and social networking service owned by the American technology conglomerate Meta Platforms, Meta. Created in 2004 by Mark Zuckerberg with four other Harvard College students and roommates, Eduardo Saverin, Andre ...
reported that 15% of its tech workforce was female, and 3% was Hispanic and 1% was black.
In August 2014, Apple
An apple is a round, edible fruit produced by an apple tree (''Malus'' spp.). Fruit trees of the orchard or domestic apple (''Malus domestica''), the most widely grown in the genus, are agriculture, cultivated worldwide. The tree originated ...
reported that 80% of its global tech staff was male and that, in the U.S., 54% of its tech jobs were staffed by Caucasians and 23% by Asians. Soon after, ''USA Today
''USA Today'' (often stylized in all caps) is an American daily middle-market newspaper and news broadcasting company. Founded by Al Neuharth in 1980 and launched on September 14, 1982, the newspaper operates from Gannett's corporate headq ...
'' published an article about Silicon Valley's lack of tech-industry diversity, pointing out that it is largely white or Asian, and male. "Blacks and Hispanics are largely absent," it reported, "and women are underrepresented in Silicon Valley—from giant companies to start-ups to venture capital firms." Civil rights activist Jesse Jackson said of improving diversity in the tech industry, "This is the next step in the civil rights movement" while T. J. Rodgers has argued against Jackson's assertions.
According to a 2019 Lincoln Network survey, 48% of high-tech workers in Silicon Valley identify as Christians
A Christian () is a person who follows or adheres to Christianity, a monotheistic Abrahamic religion based on the life and teachings of Jesus Christ. Christians form the largest religious community in the world. The words '' Christ'' and ''C ...
, with Roman Catholicism
The Catholic Church (), also known as the Roman Catholic Church, is the List of Christian denominations by number of members, largest Christian church, with 1.27 to 1.41 billion baptized Catholics Catholic Church by country, worldwid ...
(27%) being its largest branch, followed by Protestantism
Protestantism is a branch of Christianity that emphasizes Justification (theology), justification of sinners Sola fide, through faith alone, the teaching that Salvation in Christianity, salvation comes by unmerited Grace in Christianity, divin ...
(19%). The same study found that 16% of high-tech workers identify as nothing in particular, 11% as something else, 8% as Agnostics, and 7% as Atheists. Around 4% of high-tech workers in Silicon Valley identify as Jews
Jews (, , ), or the Jewish people, are an ethnoreligious group and nation, originating from the Israelites of History of ancient Israel and Judah, ancient Israel and Judah. They also traditionally adhere to Judaism. Jewish ethnicity, rel ...
or Buddhists, 3% as Hindus
Hindus (; ; also known as Sanātanīs) are people who religiously adhere to Hinduism, also known by its endonym Sanātana Dharma. Jeffery D. Long (2007), A Vision for Hinduism, IB Tauris, , pp. 35–37 Historically, the term has also be ...
, 2% as Muslims
Muslims () are people who adhere to Islam, a Monotheism, monotheistic religion belonging to the Abrahamic religions, Abrahamic tradition. They consider the Quran, the foundational religious text of Islam, to be the verbatim word of the God ...
and 1% as Satanists
Satanism refers to a group of Religion, religious, Ideology, ideological, or Philosophy, philosophical beliefs based on Satan—particularly his worship or veneration. Because of the ties to the historical Abrahamic religions, Abrahamic reli ...
.
Municipalities
The following Santa Clara County cities are traditionally considered to be in Silicon Valley (in alphabetical order):
The geographical boundaries of Silicon Valley have changed over the years. Historically, the term Silicon Valley was treated as synonymous with Santa Clara Valley, and then its meaning later evolved to refer to Santa Clara County plus adjacent regions in southern San Mateo County and southern Alameda County. However, over the years this geographical area has been expanded to include San Francisco County, Contra Costa County, and the northern parts of Alameda County and San Mateo County, this shift has occurred due to the expansion in the local economy and the development of new technologies.
The United States Department of Labor
The United States Department of Labor (DOL) is one of the executive departments of the U.S. federal government. It is responsible for the administration of federal laws governing occupational safety and health, wage and hour standards, unemp ...
's Quarterly Census of Employment and Wages program defined Silicon Valley as the counties of Alameda, Contra Costa, San Francisco, San Mateo, Santa Clara, and Santa Cruz. In 2015, MIT researchers developed a novel method for measuring which towns are home to startups with higher growth potential and this defines Silicon Valley to center on the municipalities of Menlo Park, Mountain View, Palo Alto, and Sunnyvale.
Education
Colleges and universities
Silicon Valley is associated with many colleges and universities in and near the Valley. The most prominent of those institutions are Stanford University
Leland Stanford Junior University, commonly referred to as Stanford University, is a Private university, private research university in Stanford, California, United States. It was founded in 1885 by railroad magnate Leland Stanford (the eighth ...
, a private university located in the Valley, and the University of California, Berkeley
The University of California, Berkeley (UC Berkeley, Berkeley, Cal, or California), is a Public university, public Land-grant university, land-grant research university in Berkeley, California, United States. Founded in 1868 and named after t ...
, a public university located north of Silicon Valley. Both are considered to be world-leading institutions. In addition, San José State University plays a vital role in supplying Silicon Valley with a highly skilled and diverse workforce, particularly in engineering, business, and computer science. More broadly, colleges and universities in the area include:
Secondary Education
Funding for public schools in upscale Silicon Valley communities such as Woodside is often supplemented by grants from private foundations set up for that purpose and funded by local residents. Schools in less affluent areas such as East Palo Alto must depend on state funding.
Culture
Events
*Apple Worldwide Developers Conference
The Worldwide Developers Conference (WWDC) is an information technology conference held annually by Apple Inc. The conference is currently held at Apple Park in California. The event is used to showcase new software and technologies in the macO ...
, San Jose
* Facebook F8, San Jose
* Silicon Valley Comic Con, San Jose
* Silicon Valley Pride, San Jose
Museums
* Computer History Museum
* Children's Discovery Museum of San Jose
* De Saisset Museum at Santa Clara University
* Hiller Aviation Museum
* History Park by History San José
* The HP Garage
* Intel Museum
* Los Altos History Museum
* Moffett Field Historical Society Museum
* Palo Alto Art Center
* Sunnyvale Heritage Park Museum
* The Tech Museum of Innovation
Media
In 1980, ''Intelligent Machines Journal'' changed its name to ''InfoWorld
''InfoWorld'' (''IW'') is an American information technology media business. Founded in 1978, it began as a monthly magazine. In 2007, it transitioned to a Web-only publication. Its parent company is International Data Group, and its sister pu ...
'', and, with offices in Palo Alto
Palo Alto ( ; Spanish language, Spanish for ) is a charter city in northwestern Santa Clara County, California, United States, in the San Francisco Bay Area, named after a Sequoia sempervirens, coastal redwood tree known as El Palo Alto.
Th ...
, began covering the emergence of the microcomputer industry in the valley.
Local and national media cover Silicon Valley and its companies. CNN, ''The Wall Street Journal
''The Wall Street Journal'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...
'', and Bloomberg News operate Silicon Valley bureaus out of Palo Alto. Public broadcaster KQED (TV) and KQED-FM, as well as the Bay Area's local ABC station KGO-TV
KGO-TV (channel 7) is a television station licensed to San Francisco, California, United States, serving the San Francisco Bay Area. It has been owned and operated by the American Broadcasting Company, ABC television network through its ABC Owne ...
, operate bureaus in San Jose. KNTV, NBC's local Bay Area affiliate "NBC Bay Area", is located in San Jose. Produced from this location is the nationally distributed TV Show "Tech Now" as well as the CNBC Silicon Valley bureau. San Jose-based media serving Silicon Valley include the ''San Jose Mercury News
''The Mercury News'' (formerly ''San Jose Mercury News'', often locally known as ''The Merc'') is a morning daily newspaper published in San Jose, California, in the San Francisco Bay Area. It is published by the Bay Area News Group, a subsidia ...
'' daily and the ''Metro Silicon Valley
''Metro'', also known as ''Metro Silicon Valley'', is a free weekly newspaper published by the San Jose, California-based Weeklys media group for four decades, a period during which its readership area became known as Silicon Valley.
Metro was ...
'' weekly.
Specialty media include '' El Observador'' and the ''San Jose / Silicon Valley Business Journal''. Most of the Bay Area's other major TV stations, newspapers, and media operate in San Francisco
San Francisco, officially the City and County of San Francisco, is a commercial, Financial District, San Francisco, financial, and Culture of San Francisco, cultural center of Northern California. With a population of 827,526 residents as of ...
or Oakland. Patch.com operates various web portals, providing local news, discussion and events for residents of Silicon Valley. Mountain View has a public nonprofit station, KMVT-15. KMVT-15's shows include Silicon Valley Education News (EdNews)-Edward Tico Producer.
Cultural references
Some appearances in media, in order by release date:
*'' A View to a Kill''—1985 film from the James Bond series. Bond thwarts an elaborate ploy by the film's antagonist, Max Zorin, to destroy Silicon Valley.
*'' Triumph of the Nerds: The Rise of Accidental Empires'' – 1996 documentary
*'' Pirates of Silicon Valley''—1999 film about the early days of Apple Computer
Apple Inc. is an American multinational corporation and technology company headquartered in Cupertino, California, in Silicon Valley. It is best known for its consumer electronics, software, and services. Founded in 1976 as Apple Computer Co ...
and Microsoft
Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
(though the latter has never been based in Silicon Valley)
*'' Code Monkeys''—2007 comedy series
*''The Social Network
''The Social Network'' is a 2010 American biographical drama film directed by David Fincher and written by Aaron Sorkin, based on the 2009 book '' The Accidental Billionaires'' by Ben Mezrich. It portrays the founding of social networkin ...
''—2010 film
*'' Startups Silicon Valley''—reality TV series, debuted 2012 on Bravo
*'' Betas''—TV series, debuted 2013 on Amazon Video
Amazon Prime Video, known simply as Prime Video, is an American subscription video on-demand over-the-top streaming television service owned by Amazon. The service primarily distributes films and television series produced or co-produced by ...
*'' Jobs''—2013 film
*'' The Internship''—2013 comedy film about working at Google
Google LLC (, ) is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial ...
*''Silicon Valley
Silicon Valley is a region in Northern California that is a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the geographical area of the Santa Clara Valley ...
''—2014 American sitcom
A sitcom (short for situation comedy or situational comedy) is a genre of comedy produced for radio and television, that centers on a recurring cast of character (arts), characters as they navigate humorous situations within a consistent settin ...
from HBO
Home Box Office (HBO) is an American pay television service, which is the flagship property of namesake parent-subsidiary Home Box Office, Inc., itself a unit owned by Warner Bros. Discovery. The overall Home Box Office business unit is based a ...
* ''Halt and Catch Fire''—2014 TV series, the last two seasons are primarily set in Silicon Valley
* ''Steve Jobs''—2015 film
*'' Watch Dogs 2''—2016 video game developed by Ubisoft
Ubisoft Entertainment SA (; ; formerly Ubi Soft Entertainment SA) is a French video game publisher headquartered in Saint-Mandé with development studios across the world. Its video game franchises include '' Anno'', '' Assassin's Creed'', ' ...
*'' Valley of the Boom''—2019 docudrama about the 1990s tech boom in Silicon Valley
*'' Devs''—2020 TV miniseries
*'' Start-Up''—2020 South Korean television series, when three artificial intelligence (A.I.) developers from South Korea are offered positions as engineers for the fictional company, 2STO which is located in Silicon Valley.
*'' The Dropout''—2022 TV miniseries about the rise and fall of Theranos
*'' Super Pumped''—2022 TV series about Travis Kalanick's time at Uber
Uber Technologies, Inc. is an American multinational transportation company that provides Ridesharing company, ride-hailing services, courier services, food delivery, and freight transport. It is headquartered in San Francisco, California, a ...
See also
* Fail fast (business), an element of corporate culture common among Silicon Valley organizations
* List of tourist attractions in Silicon Valley
* List of places with "Silicon" names around the world
*List of technology centers
This is a list some of technology centers throughout the world. Government planners and business networks often incorporate "silicon" or "valley" into place names to describe their own areas as a result of the success of Silicon Valley in Califo ...
around the world
*Semiconductor industry
The semiconductor industry is the aggregate of companies engaged in the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits. Its roots can be traced to the invention of the transistor ...
References
Further reading
Books
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* Halpin, Darren R., and Anthony J. Nownes. ''The New Entrepreneurial Advocacy: Silicon Valley Elites in American Politics'' (Oxford University Press, USA, 2021).
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* O'Mara, Margaret. ''The Code: Silicon Valley and the Remaking of America '' (2019).
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Journals and newspapers
* Alexandre, Olivier. "Culture as a universal variable opportunity flow and selection process in Silicon Valley." ''Glocalism: Journal of Culture, Politics and Innovation'' (2022)
online
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* Kwon, Doris, and Olav Sorenson. "The Silicon Valley Syndrome." ''Entrepreneurship Theory and Practice'' (2021)
online
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* (Subscription required for full text.)
Audiovisual
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External links
Santa Clara County: California's Historic Silicon Valley
��A National Park Service
The National Park Service (NPS) is an List of federal agencies in the United States, agency of the Federal government of the United States, United States federal government, within the US Department of the Interior. The service manages all List ...
website
Silicon Valley
��An American Experience documentary broadcast in 2013
* from San Jose State University
Silicon Valley Historical Association
Silicon Valley Central Chamber of Commerce website
{{Authority control
Silicon Valley,
Economic regions of California
Geography of Santa Clara County, California
High-technology business districts in the United States
Information technology places
Santa Clara County, California
Science and technology in the San Francisco Bay Area
Subregions of the San Francisco Bay Area