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A History of Silicon Valley The Greatest Creation of Wealth in History (An immoral tale) being a presentation by piero scaruffi www.scaruffi.com adapted from the book “A History of Silicon Valley”

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Page 1: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

A History of Silicon Valley The Greatest Creation of Wealth in History

(An immoral tale)

being a presentation by piero scaruffi www.scaruffi.com

adapted from the book “A History of Silicon Valley”

Page 2: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

www.scaruffi.com 2

Piero Scaruffi

• Cultural Historian

• Cognitive Scientist

• Blogger

• Poet

• www.scaruffi.com

Page 3: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

www.scaruffi.com 3

This is Part 2

• See http://www.scaruffi.com/svhistory for the index of this Powerpoint presentation and links to the other parts

– 1900-1960

– The 1960s

– The 1970s

– The 1980s

– The 1990s

– The 2000s

http://www.scaruffi.com/svhistory
Page 4: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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What the book is about…

• The book is a history of the high-tech industry in the San Francisco Bay Area (of which Silicon Valley is currently the most famous component)

Page 5: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Semiconductors

– Fairchild Semiconductors’ planar integrated circuit (1961)

– Fairchild Semiconductors employees: Don Farina, Don Valentine, Charles Sporck, Jerry Sanders, Jack Gifford, Mike Markkula

– Signetics (1961), first Fairchild spinoff

– Main customers of integrated circuits: the Air Force and NASA

Page 6: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Life Sciences

• Stanford hires Carl Djerassi (1959), inventor of the birth-control pill

• Alejandro Zaffaroni’s Syntex relocates to the Stanford Industrial Park (1963)

Page 7: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• New York – IBM 7000 transistorized series (1960) – IBM’s SABRE (1960), the first online transaction

processing, an adaptation of SAGE to automating American Airlines' reservation system

– GE’s IDS (1961), the first database management system

• Boston (MIT) – CTSS (1961), the first time-sharing system – "Spacewar" (1962), the first computer game – Ivan Sutherland’s "Sketchpad“ (1963), the first

computer program with a GUI

Page 8: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• US Government – Paul Baran (Rand Corp): a distributed network of

computers can survive a nuclear strike (1962) – Ted Nelson (Harvard Univ): hypertext (1965) – Joseph Licklider (DARPA’s IPTO) funds Project MAC for

A.I. at the MIT (1963) and Project Genie for time-sharing at UC Berkeley (1964)

– Bob Taylor (NASA) funds Douglas Engelbart‘s ARC for human-computer interaction at the SRI

– Bob Taylor (DARPA): Arpanet (1966) – Project MAC and the Arpanet further increase

Boston's lead over the rest of the nation

Page 9: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Integrated Circuits

• Exponential growth in chip density – Frank Wanlass at General Microelectronics (1964):

CMOS, i.e. low power consumption, low heat and high density (i.e. semiconductors into digital watches and pocket calculators)

– Lee Boysel at Fairchild (1966): four-phase clocking technique to create very dense MOS circuits

– Federico Faggin at Fairchild (1968): silicon-gated MOS transistors (faster, smaller and low energy)

• Gordon Moore’s law (1965): the processing power of computers will double every 12 (18) months

Page 10: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Integrated Circuits

• Fairchild spinoffs: Amelco (Jean Hoerni), Molectro (James Nall), General Microelectronics (Don Farina), Intersil (Jean Hoerni); AMD (Jerry Sanders ), etc

• Texas Instruments, Motorola and RCA do not spawn a similar genealogical tree of spinoffs

• A self-sustaining manufacturing community that mixes Darwinian competition/selection with symbiotic cooperation

• The system exhibits a form of collective learning • Few of the companies that had thrived in the age of

microwave electronics survive to the age of the integrated circuit

Page 11: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Integrated Circuits

• Role of the government

– The military serves as both a munificent venture capitalist that did not expect a return (and not even co-ownership) and as an inexpensive testbed

– NASA's Apollo mission to send a man to the Moon builds the Apollo Guidance Computer (1961-64), the first computer to use integrated circuits

Page 12: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Culture

• San Francisco Mime Troupe (1959) • Peter Voulkos’ Funk Movement in ceramic

sculpture (1959) • Canyon Cinema (1961) • Tape Music Center (1962) • Esalen Institute (1962) • Pop Art at UC Davis (1960 • First public showing of computer art (San Jose,

1963) • The Ali Akbar College of Music (1967)

Page 13: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Culture

• SLAC (1962), the longest linear accelerator in the world

• Stanford Artificial Intelligence Laboratory (1963)

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Society • Free Speech Movement (1964) • Ken Kesey’s Merry Pranksters (1964) • First hippie festival (1965) • The Diggers (1966) • The "Summer of Love" (1966) • Black Panther Party (1966) • Monterey’s rock festival (1967) • Stewart Brand’s "Whole Earth Catalog“ (1968) • The hippie phenomenon further increases immigration

from other states • All these movements are hostile to technological

progress

Page 15: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Society

• The Immigration Act (1965) greatly increases the quotas of immigrants allowed from various countries and allows immigration based on rare skills, such as software or hardware engineering

• Only 47 scientists immigrate to the USA from Taiwan in 1965, but in 1967 the number is 1,321

• Brain drain of engineers and scientists from Europe and especially the Far East towards the Bay Area

Page 16: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• IBM’s System/360 (1964), a family of computers that are software-compatible and modular (the first “mainframe” computer), derived from the military Project Stretch (1956-61)

• The seven dwarfs: Burroughs in Detroit, Sperry Rand in New York (Univac , ERA, etc), Control Data in Minneapolis, Honeywell in New Jersey, NCR, General Electric and RCA in New York

• The "bunch": Burroughs, Univac, NCR, Control Data Corporation, and Honeywell

Page 17: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• New businesses

– Software companies in Texas: EDS (outsourcing) and Uccel (the packaged product TMS)

– Tymshare (1964) offers time-sharing services in Cupertino

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Meanwhile elsewhere…

• Small computers – DEC’s PDP-1 (1960), an MIT spinoff funded by venture

capitalists – SDS’ 910 (1962), a Packard-Bell spinoff funded by

venture capitalists – DEC’s PDP-8 (1965) that uses integrated circuits – Olivetti’s P101 (1965), a programmable electronic

desktop computer – Texas Instruments’ hand-held calculator (1967) – First computer manufacturer of the Bay Area:

Hewlett-Packard, but their calculators are simply a natural evolution of an instrumentation product line

Page 19: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Dynamic Memory

• Advanced Memory Systems (1968), Intel (1968) and Four Phase (1969): semiconductor computer memories instead of magnetic core memories

• Before the DRAM: the semiconductor firms make money by building custom-designed integrated circuits (small market but lucrative)

• The DRAM: a commodity sold in large numbers at a low price

• Constant downward pressure on prices • Intel’s i1103 is the first bestseller of the DRAM

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High-tech Creativity

• SRI

– Doug Engelbart’s NLS (1968): a graphical user interface and a hypertext system running on the first computer equipped with a mouse and connected to a remote computer

– "Shakey the Robot“ (1969)

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High-tech Creativity

• Xerox PARC (1970)

– Alan Kay’s Dynabook and Smalltalk

– Not faster computation but better interaction

– Casual, informal and egalitarian workplace

– The equivalent for a workplace of the alternative lifestyle preached by the hippies

Page 22: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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High-tech Creativity

• Computer manufacturers – IBM Western Labs’ floppy disk (1971): a cheap

storage medium to load the 370 mainframe's microcode and replace the cumbersome tape units

– HP/3000 (1972): one of the first computers to be completely programmed in a high-level language instead of assembly language

– The PDP of DEC had introduced a "do-it-yourself" mindset in data centers. The HP/3000 pushed that mindset one floor up to the business offices.

– Amdahl (1975): cheaper IBM-compatible mainframes

Page 23: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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High-tech Creativity

• Computer games

– Nolan Bushnell’s "Computer Space“ (1971): a free-standing terminal powered by a computer

– Atari’s “Pong“ (1972)

Page 24: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Life Sciences

• Alejandro Zaffaroni’s Alza (1968): biomedical industry

• Cetus (1971), the first biotech company of the Bay Area (to develop methods to process DNA)

• Paul Berg's team at Stanford University synthesizes the first recombinant DNA molecule (1972)

• Stanley Cohen (Stanford) and Herbert Boyer (UCSF) transfer DNA from one organism to another, creating the first recombinant DNA

Page 25: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Labor Fluidity

• California is blessed with an economy which mostly outperforms the rest of the USA

• California is an employee's market and not an employer's market

• California’s law code forbids any labor contract that limits what an employee can do after quitting

• Silicon Valley engineers exhibit a preference for horizontal instead of vertical mobility, for hopping from job to job instead of following a career of promotion after promotion

• Staying with the same company for more than

Page 26: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Labor Fluidity

• Job turnover and no protection for trade secrets foster an endless flow of knowledge throughout the community\spread

• Pervasive job mobility spreads knowledge quickly and efficiently

• Rapid dissemination of knowledge within an industry across companies, as well as in cross-fertilization of ideas across research groups.

• Status symbol of being an engineer like in no other region in the world (second to the status symbol of being an entrepreneur)

Page 27: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Society

• Ronald Reagan’s era (1967-75): the age in which citizens revolt against big government and taxation

• Post-hippy grass-roots environmentalist movement (Garrett Hardin’s article "Tragedy of the Commons“)

• Man and his Environment conference (1968)

• "Earth Day“, a new international holiday (1970)

• The Reagan-ite establishment pressed to curb public spending and the environmentalist

Page 28: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• Arpanet

• Unix

• Remote Computing

• The Unbundling

Page 29: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• The Arpanet (1969): four nodes, three of which are in California (UCLA, SRI and UC Santa Barbara) run by BBN in Boston

Page 30: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• Unix: – Bell Labs’ successor to the

MULTICS time-sharing operating system (1971)

– Rewritten in C, it can be easily ported across computers (1973)

– AT&T is forbidden to enter the computer business and forced to share any non-telephone invention with the whole world

– The Unix becomes a worldwide phenomenon

Page 31: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• Remote Computing – IBM’s transactional system CICS for real-time

transactions (1969)

• The Unbundling – Before the unbundling only SDS had charged

customers for software

– IBM forced to unbundle the application program of its mainframes (1969)

– Free market for software applications

– Software companies shift from the consulting business of custom applications to selling off-the-shelf packages

Page 32: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Meanwhile elsewhere…

• Britain – Britain had the know-how (it had pioneered

computers)

– National long-term plan (NRDC)

– Britain's computer industry self-destroyed within two decades

• Japan – Japan was experiencing the most spectacular

economic boom in the world

– National long-term plan (MITI)

– Japan created a vibrant computer industry within the existing conglomerates (Fujitsu, Hitachi, NEC)

Page 33: being a presentation by piero scaruffi  · Integrated Circuits •Exponential growth in chip density –Frank Wanlass at General Microelectronics (1964): CMOS, i.e. low power consumption,

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Next…

• See http://www.scaruffi.com/svhistory for the index of this Powerpoint presentation and links to the other parts


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Piero Scaruffi 2004scaruffi.com/know/history/renaiexp.pdf · ventures (early exploration) ... First import of African slaves into Spanish America to man the sugar industry ... •

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What the Modern Age knew - Piero Scaruffi · What the Modern Age knew 1991- Piero Scaruffi 2004 Europe will never be like America. Europe is a product of history. ... –Globalization

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Artificial Intelligence and the Singularity - scaruffi.comArtificial Intelligence and the Singularity piero scaruffi October 2014 - Revised 2016 ... BrainGate to make a tetraplegics

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Piero Scaruffi 2004 · –Perspective (Giotto, Leonardo) –The viewpoint (the outside observer at the center of the scene vs simultaneous representations of events from different

What the Middle Ages knew - Piero Scaruffi · What the Middle Ages knew Part III Piero Scaruffi 2004 . 2 What the Middle Ages knew ... 5 What the Middle Ages knew

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