Steve Jobs
transform the area into the cradle of the tech revolution, Stanford University’s dean of engineering, Frederick Terman, created a seven-hundred-acre industrial park on university land for private companies that could commercialize the ideas of his students. Its first tenant was Varian Associates, where Clara Jobs worked. “Terman came up with this great idea that did more than anything to cause the tech industry to grow up here,” Jobs said. By the time Jobs was ten, HP had nine thousand employees and was the blue-chip company where every engineer seeking financial stability wanted to work.
The most important technology for the region’s growth was, of course, the semiconductor. William Shockley, who had been one of the inventors of the transistor at Bell Labs in New Jersey, moved out to Mountain View and, in 1956, started a company to build transistors using silicon rather than the more expensive germanium that was then commonly used. But Shockley became increasingly erratic and abandoned his silicon transistor project, which led eight of his engineers—most notably Robert Noyce and Gordon Moore—tobreak away to form Fairchild Semiconductor. That company grew to twelve thousand employees, but it fragmented in 1968, when Noyce lost a power struggle to become CEO. He took Gordon Moore and founded a company that they called Integrated Electronics Corporation, which they soon smartly abbreviated to Intel. Their third employee was Andrew Grove, who later would grow the company by shifting its focus from memory chips to microprocessors. Within a few years there would be more than fifty companies in the area making semiconductors.
The exponential growth of this industry was correlated with the phenomenon famously discovered by Moore, who in 1965 drew a graph of the speed of integrated circuits, based on the number of transistors that could be placed on a chip, and showed that it doubled about every two years, a trajectory that could be expected to continue. This was reaffirmed in 1971, when Intel was able to etch a complete central processing unit onto one chip, the Intel 4004, which was dubbed a “microprocessor.” Moore’s Law has held generally true to this day, and its reliable projection of performance to price allowed two generations of young entrepreneurs, including Steve Jobs and Bill Gates, to create cost projections for their forward-leaning products.
The chip industry gave the region a new name when Don Hoefler, a columnist for the weekly trade paper
Electronic News
, began a series in January 1971 entitled “Silicon Valley USA.” The forty-mile Santa Clara Valley, which stretches from South San Francisco through Palo Alto to San Jose, has as its commercial backbone El Camino Real, the royal road that once connected California’s twenty-one mission churches and is now a bustling avenue that connects companies and startups accounting for a third of the venture capital investment in the United States each year. “Growing up, I got inspired by the history of the place,” Jobs said. “That made me want to be a part of it.”
Like most kids, he became infused with the passions of the grown-ups around him. “Most of the dads in the neighborhood did really neat stuff, like photovoltaics and batteries and radar,” Jobs recalled. “I grew up in awe of that stuff and asking people about it.” The most important of these neighbors, Larry Lang, lived seven doors away. “He was my model of what an HP engineer was supposed to be: a big ham radiooperator, hard-core electronics guy,” Jobs recalled. “He would bring me stuff to play with.” As we walked up to Lang’s old house, Jobs pointed to the driveway. “He took a carbon microphone and a battery and a speaker, and he put it on this driveway. He had me talk into the carbon mike and it amplified out of the speaker.” Jobs had been taught by his father that microphones always required an electronic amplifier. “So I raced home, and I told my dad that he was wrong.”
“No, it needs an amplifier,” his father assured him. When Steve protested otherwise, his father said he was crazy. “It can’t work without an amplifier. There’s some trick.”
“I kept saying no to my dad, telling him he had to see it, and finally he actually walked down with me and saw it. And he said, ‘Well I’ll be a bat out of hell.’”
Jobs recalled the incident vividly because it was his first realization that his father did not know everything. Then a more
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