Silicon Valley and Hi-Tech Entrepreneurship - A Historical Perspective

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1 Silicon Valley and Hi-Tech Entrepreneurship - A Historical Perspective Dong-Hyuk Ju ( 주동혁 ) UbiMOS Technologies, Inc. San Jose, CA K-Night Sunnyvale, CA May 30,

2 Silicon Valley Born in Santa Clara county, expanding into neighboring counties Population ~2M (1M in San Jose) Santa Clara County 2

3 The Origin of the Name Silicon Valley Don Hoefler s article on Jan issue of weekly Electronic News. 3

4 Ingredients of Silicon Valley Success People Engineers, Scientists, Venture Capitalists, Entrepreneurs Educational and Research Institutions Stanford, UC Berkeley, Environment and Culture Isolated but self-sufficient (in early days), nice weather and nature, multicultural, English-speaking Mentality Passion for work, risk-taking, casual 4

5 Key Milestones from Silicon Valley Perspective California Gold Rush James Marshall 1907 Triode Vacuum Tube Lee De Forest 1957 Fairchild Semiconductor Traitorous Wireless Clean Tech Nano Tech 1909 First Radio Broadcasting Station in U.S., San Jose 1939 Founding of HP Hewlett, Packard 1977 PC Era Begins. Apple, IBM 1891 Opening of Stanford University Age of Electricity 1947 Invention of Transistor Shockley, Brattain, Bardeen Electronics Age 1995 Internet Age Clark, Andreessen Semiconductor PC 5 Internet

6 California Gold Rush, 1849 Non-native population of CA increased to more than 100,000 at end of 1849 from ~1000 in

7 Discovery of Gold at Coloma, CA Jan. 24, 1848 Coloma Highway 49 entering Coloma 7

8 South Fork River the site where Gold Rush has begun 8

9 James Marshall the carpenter who discovered the first nugget Monument at the original site of Sutter Mill Statue of James Marshall, Coloma Replica of Sutter Mill 9

10 In case you are interested, Coloma holds annual gold discovery festival in the week of Jan

11 California Gold Rush as a Precursor to the Birth of Silicon Valley Accumulation of wealth, capital, technology and entrepreneurship in northern California Change of Mentality in Ordinary People from Puritan lifestyle hard-working, frugal, content with one s life to chasing American Dream All men are created equal for pursuit of Happiness, wealth. 11

12 Lee De Forest, Father of Radio, prolific inventor Ph.D. in EE, Yale University, Moved to San Francisco in Invented Triode Vacuum Tube in 1907, setting off electronics age. Built first commercial Triode amplifier in 1912 while working at Federal Telegraph Co. in Palo Alto. The plaque commemorating the work of De Forest at FTC. Poster of De Forest, Computer History Museum, MV The site of Federal Telegraph Research Lab in Palo Alto, where De Forest developed Triode amplifier. 12

13 Varian Brothers: Russell and Sigurd Russell, MS, Physics, 1927, Stanford (father of Radar) Invented Klystron and practical RADAR, contributed to winning the WW II. Started Varian Associates, Inspiration to Hewlett and Packard Early example of University-Industry collaboration Varian Park in Cupertino opened with donation from Russell Varian Russell (left) and Sigurd Varian in 1950 s 13

14 Frederick Terman A True Visionary, Workaholic and Father of Silicon Valley Born in 1900, BS, MS, Stanford, Ph.D. EE, MIT 1924 (at the age of 24) Stanford professor, Dean of Engineering, VP, Provost Strong Advocate of Industry-Academia Collaboration Pioneer of Radio engineering, advisor/mentor to Hewlett and Packard Retired in 1965, consulted Korean government on establishing KAIST, awarded an Order of Civil Merit by Korean government in Fred Terman Terman Eng. Bldg, Stanford University Terman greeting Packard (left) and Hewlett (center) 14

15 Bill Hewlett and David Packard Launching HP in 1939 Hewlett from SF, Packard from Colorado Hewlett: BSEE, 1934, Stanford, MSEE, MIT, 1937 Packard: BSEE, 1934, Stanford, worked at GE Started HP in 1939 in Palo Alto, built corporate culture HP Way Lifelong business partner and friends, model citizens Hewlett (right) and Packard in the garage The house and garage where Hewlett and Packard lived and launched HP. 15

16 The HP Garage Palo Alto, CA The garage was the office, R&D center and manufacturing plant. Fully restored to the original shape in early HP days Symbol of high-tech entrepreneurship CA Historic Landmark, National Historic Place 16

17 Invention of Transistor, Dec Brattain, Bardeen and Shockley Three physicists at Bell Labs invented the transistor in Dec They shared Nobel prize in physics in Shockley (sitting), Brattain (right) and Bardeen The model replica of the transistor invented at Bell Labs 17

18 William Shockley Father of Electronics Age Brilliant Physicist, Nobel Laureate Grew up in Palo Alto, BS, 1932, Caltech, MS, Ph.D MIT, Physics Founded Shockley Semiconductor Lab in Mountain View, CA in 1955 Stanford Professor, EE, Eugenics research. Failed life in later years. Shockley as a Stanford professor The book Shockley wrote became a bible to engineers in early days of transistors. 18

19 Brattain and Bardeen Walter Brattain: BS 1924, Whitman College, Ph.D. Physics, 1929 Univ. of Minnesota Experimental physicist at Bell Labs, Retired as a professor at Whitman College John Bardeen: BS EE 1928, Univ. of Wisconsin, Ph.D. physics 1936, Princeton Theoretical physicist, two-time winner of Nobel prize in Physics (1956, 1972) Brattain holding a transistor model US stamp commemorating Bardeen s scientific achievement 19

20 Broken Genius vs. True Genius A book about the life of Shockley A book about the life of Bardeen 20

21 Shockley returned to Palo Alto, persuaded by Terman, started Shockley Semiconductor Lab in Mountain View. SSL became the catalyst to the birth of Silicon Valley. The Return of Shockley to California, San Antonio Road, MV At the site of SSL now stands a grocery store. Good days at SSL. Celebrating Shockley s winning of Nobel prize in On the sidewalk just outside the grocery store stands a sign referring to work done by SSL. 21

22 Fairchild Semiconductor The Birth of Silicon Valley, Sep Fairchild Semiconductor Palo Alto, CA Eight engineers left Shockley Semiconductor Lab and started their own company, Fairchild Semiconductor, less than 2 miles north of SSL, in September Shockley Semiconductor Laboratory Mountain View, CA 22

23 The Original Fairchild Building Palo Alto, CA The original Fairchild building still standing at 844 E. Charleston Road, Palo Alto Plaques next to the entrance of the building 23

24 The Traitorous Eight Eight employees of Shockley Semiconductor Lab, ranging from 28 to 34 years of age, co-founded Fairchild Semiconductor, in September Robert Noyce: Grinnell College (Iowa), Ph.D EE MIT, Gordon Moore: UC Berkeley, Ph.D. Chem, CalTech, Julius Blank: BS, Meng, New York City College, Sheldon Roberts: Ph.D. MatSc, MIT, Victor Grinich: Ph.D. EE, Stanford, Jean Hoerni: Ph.D. in Physics, Cambridge Univ., Eugene Kleiner: BS MEng, New York Univ., Jay Last: Ph.D. Physics, MIT,

25 8 Co-founders of Fairchild Semiconductor (and Silicon Valley) 1957 photo: clockwise from Noyce (foreground), Hoerni, Blank, Grinich, Kleiner, Moore, Roberts, Last 25

26 50 Years Later, Univ. Reflecting on Early Days of Fairchild Semiconductor Julius Blank, Jay Last, Gordon Moore, Arthur Rock (right) at the Fairchild Semiconductor 50th Anniversary Panel Discussion, Stanford University, Oct. 4,

27 Robert Noyce, Mayor of Silicon Valley Visionary, Entrepreneur, Motivator, Inventor of Integrated Circuits Co-founded Fairchild Semiconductor and Intel Missed opportunity to win Nobel Prize, twice. Nobel Prize in Physics, 2000 for the invention of IC Jack Kilby (Robert Noyce) Nobel Prize in Physics, 1973 for tunneling phenomena in semiconductors Leo Esaki (Robert Noyce) Noyce s 1956 lab notebook describing tunneling effect Esaki s paper published in

28 Gordon Moore Silicon Valley Native Born in 1929 in Pescadero, CA BS 1950 UC Berkeley, MS Ph.D., Chemistry, 1954 CalTech Downtown Pescadero (17 miles south of Half Moon Bay) 28

29 Gordon Moore Co-founder of Fairchild and Intel Famous for Semiconductor Innovation Trend, published in 1965, known as Moore s Law Philanthropist Donated $600M to alma mater, CalTech in 2001, the largest donation to college in US history High-tech nerds are setting a new paradigm in philanthropy. 29

30 Jobs, Wozniak and Apple Inc. Pure Silicon Valley-bred engineers and entrepreneurs Driven by extreme passion, ambition and ego Launched Apple in 1977 from a garage in Jobs house For once in our lives, we will have a company. Jobs to Woz, 1976 Do you really want to sell sugar water for the rest of your life, or do you want to come with me and change the world? Jobs to Scully, photo of Jobs and Woz Jobs at a dinner table with Noyce 30

31 The Apple Garage Paul and Clara Jobs raised Steve Jobs through high school in this house, located in Los Altos, CA. Jobs and Woz assembled Apple I computer in this garage, with help from Jobs sister Patty and a high school friend of Jobs. A modest single-story house where Apple was launched. This house may someday be designated as a historical landmark. 31

32 Go West, Young Men - and so they did. William Shockley: CA to NJ to CA Robert Noyce: Iowa to MA to CA Gordon Moore (Intel): CA to Maryland to CA Andy Grove (Intel): Hungary to NY to CA Jerry Sanders (AMD): Chicago to CA Larry Ellison (Oracle): Chicago to Silicon Valley James Clark (Silicon Graphics, Netscape): TX, LA, UT to CA Marc Andreessen (Netscape): Chicago to Silicon Valley Jerry Yang (Yahoo): Taiwan to CA David Filo (Yahoo): New Orleans to Silicon Valley Larry Page, Sergey Brin (Google): Michigan, Maryland to CA Mark Zuckerberg: MA to Silicon Valley 32

33 The Role of Stanford University Entrepreneurship is in its gene. Many successful companies were started by its graduates, faculties and employees. HP, Silicon Graphics, SUN, MIPS, Cisco, Cypress, NVIDIA, Yahoo, Google.. Encouraged from the Top David Jordan: First president of Stanford ( ) Invested $500 in Federal Telegraph Company Fred Terman ( ): Strong advocate of University- Industry collaboration and business start-up by graduates John Hennessey: Current President (2000-) Launched MIPS during his sabbatical in 1984 Sits on the board of Google (65000 shares), Cisco Publishing research papers and getting them cited is important, but developing a new technology that benefits millions of people is also valuable. 33

34 Jim Clark Serial Entrepreneur High School in TX, Navy in New Orleans, took evening classes at Tulane University, BS Univ. of NO, Ph.D. Univ. Utah (1974) Professor of Comp. Sci, Stanford University ( ) Founded Silicon Graphics (1982), Netscape (1994), and web-based companies (mycfo, Healtheon), Donated $150M in 1999 to Stanford Univ. James Clark Center for Biomedical Engineering, Stanford University 34

35 Jerry Yang, David Filo and Yahoo! Jerry Yang, from San Jose, David Filo, from New Orleans, met at Stanford Graduate School. Got bored while their Ph.D. advisor was away on sabbatical. Created Internet directory and launched Yahoo! In Jerry Yang and Akiko Yamazaki Environment and Energy Building (Y2E2), Stanford Univ. 35

36 The Story of Larry Page, Sergey Brin and Google Larry Page from Michigan, Sergey Brin, Russian Jew immigrated to US Worked on the same Ph.D. project. Page developed Page Rank algorithm, both left Stanford, started Google in Initial funding of $100K from Andy Bechtolsheim, $25M total from KPCB and Sequoia Capital in less than a year. It s the search, stupid! The rest is history. A Google server in early days 36

37 Attributes of Hi-Tech Entrepreneurs Excel at what you do. Love what you do. Be passionate, be crazy. Having a high ego is not a bad thing. It feeds self-motivation. Surround yourself with quality people. Co-founders are important. Take risks, yet be practical. 37

38 Thank you! 38

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