SILICON VALLEY

Silicon Valley todays

menu
A brief history
Most noteable institutions
A company called Intel

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Silicon Valley a brief

history

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Valley of Hearts Delight

1972: Silicon Valley, Ralph Vaerst, Don Hoefler

The early years

Ca. 1850: Gold rush, California state
1872: California Civil Code: noncompetition agreement clauses banned
to promote new ventures (mostly
related to gold)
1891: Stanford University
1910: Lee de Forest: Audion, triode, 180
patents

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1910-
Research center for US Military
1909: first weekly scheduled radio
1933-47: USS Macon (NAS)
-> Attracts lot of companies
1947: NACA, more ventures
1951: Stanford Industrial Park
1957: Soviet launches satellite NASA
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1950 and on
Support for WWII students: work
created in area by Stanford dean of
engineering Frederick Terman ->
creation of HP, Varian Associates
(klytron, hf electromagnetic waves)
Stanford support SSD technology
(1955-1980)
1972: Intel microprocessor
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"Moore's law" is the observation that, over

the history of computing hardware, the
number of transistors in a dense
integrated circuit doubles approximately
every two years Wikipedia

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What after 1970?

Law firms
Venture capitalists
Ca. 1990 Apple computer (Steve Jobs
steals ideas and employees Xerox
PARC SRI and uses them to make
a personal computer)
Google, Facebook, IT in general

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Important institutions
in the Valley?

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Fairchild Semiconductor

Established on
September 18, 1957
Pioneer in the
manufacturing of
transistors and of
integrated circuits
Initiate the start-up
culture
These spin-offs led to
rapid technological
breakthroughs in Silicon
Valley

Traitorous Eight

Stanford University
In the 1950s launched two institutional innovations :
the University Honors Cooperative Program and the
Stanford Industrial Park (now called Stanford
Research Park)
Currently, innovative ideas produced at Stanford find
their way to industries through licensing via the
Stanford Office of Technology Licensing
Main roles:
Attract people from all over the world to the region
Maintain close contact among its approximately 50
research centers with the surrounding Silicon
Valley business community
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Venture Capitalist (VCs)

Kleiner Perkins Caufield & Byers(KPCB)
Investors in Google, Sun, Intuit and AOL

Greylock Partners
Investors in Facebook, LinkedIn, Oodle and Claria.

Sequoia Capital
Investors in Electronic Arts, Yahoo, Cisco Systems

In Silicon Valley, VCs and lawyers play more than their

conventional roles. They influence the structure and
future development of their client companies.
VCs not only provide necessary financial resources to startups and spin-offs, but often play the multiple roles of
broker, and management consultant
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Law firm
Wilson Sonsini Goodrich & Rosati
Brobeck Phleger & Harrison
Cooley Godward
The lawyers are deal makers as well as
counselors. As deal makers, Silicon Valley
attorneys employ their connections in the
local business community to link clients with
various transactional partners (Suchman
1994, 96)
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Federal Government
helping Stanford to build up its reputation as a leading
research university, federal government contributed to
attract the interest of defense related industry to
Stanford
Government contracts with defense related companies
gave an opportunity to Stanford to gain expertise, thus
ensuring a leading position facing these companies Stanford became the compelling partner of industry.
Government funds facilitates the transition of a privately
funded research project from, or into, a more basic
research project.
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Intel Quick Facts

Global headquarters: Santa Clara, California
107,600 employees worldwide (at end of
2013)
55 percent of employees reside in the U.S.
NASDAQ ticker symbol: INTC
Chief Executive Officer : Brian M. Krzanich
President : Rene J. James
2013 net revenue: $52.7 billion
2013 earnings per share: $1.89
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Intel - History

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Intel - History

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Intel - History

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Intel - History

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Intel and Stanford

University
The Intel-Stanford tie famously began back in 1969 when
Stanford electrical engineering alumnus Ted Hoff became Intel
employee No. 12. Within two years, he had invented, along
with Federico Faggin and Stan Mazor, Intel's flagship product:
the microprocessor.
For more than four decades, the Stanford-Intel relationship has
been behind the launch of some of Intel's flagship technologies
and hundreds of the company's engineering careers. (Almost
1,000 Stanford alumni have worked at Intel)
"Industry does a good job at the D part of R&D--but we rely on
the tier-one research universities like Stanford on the R side,"
Craig Barret - Intel chairman and former CEO (1998-2005)
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Intel and VCs

1968 : Arthur Rock (VCs)contributes $10,000 and
additional $2.5 million by selling convertible
debentures. Rock then become chairman of the
company

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Intel Joint Partnership

Beginning in 2006 : Apple to Use Intel Microprocessors
Sept 2011 : Intel, Google announce mobile partnership for Atom Android smartphones
Cisco and intel longtime partnership :
- Data Center
- Unified Computing System
- Mobility

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A happy prison??
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Any questions?

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