You Won’t Believe How Silicon Valley Became Silicon Valley

Why is Silicon Valley called Silicon Valley? Read more to find out

Silicon Valley is the base for companies which believe in innovation in technology.

Image result for silicon valley

Placed at South of San Francisco, California the dream destination for IT companies, abodes around 2000 tech companies and it has the densest concentration of technology companies in the world.

Related image

Closeness to suppliers, customers backed by insatiable innovative research gives everyone there a competitive advantage over similar companies located elsewhere in the world.

More importantly, most of the companies in the Valley are also pioneers and frontrunners in their business. These include software, social media and other internet applications’ companies which have radically transformed the face of IT in the world. Companies located in this hub also manufacture lasers, fiber optics, robotics and medical tools which have proved to be extremely useful to the world.

Silicon Valley was named because the region was a home to lot of semiconductor chips manufacturing companies which used silicon for the process of computer chips manufacture.

Silicon Valley creates a base for innovative organizations to become highly successful as it provides all the conducive atmosphere in addition to immense opportunities and it also has immense growth potential as there is no end to innovation and technology develops every day.

You have the latest processor computer laptop today but there might be a more powerful high computing processor slated to release tomorrow.

The Silicon Valley helps to create more jobs, generates better tax revenues and keeps spirits high following higher growth potential.

Where is Silicon Valley?

Image result for silicon valley

Silicon Valley comprises of cities/towns south of San Francisco. It had its origin in the Palo Alto/Menlo Park/Stanford University area. On the east, touched by the San Francisco bay. On the west, there are Santa Cruz mountains and there is Redwood City north to it.

The south is bordered by several cities that include Los Altos, mountain view, Sunnyvale, Santa Clara, San Jose and Cupertino. The coast range mountains lie in the southeast area.

Grand History

Image result for silicon valley history

The idea as well as development in the area came up during the period of “Great Depression”.  Great depression was a global economic depression that lasted for at least 10 years.  It started on October 24, 1929, known as Black Thursday, the first day of the stock market crash of 1929.

Image result for silicon valley history

In the same period, Frederick Terman, an engineering professor at Stanford thought of creating more job options for his students. He also motivated two of his students, William Hewlett and David Packard. He also took grants for them so that they could set up an innovative technology company named after them.

Terman was also appointed as the dean of the engineer’s school after the World War II. He also motivated the faculty to sit on the boards of new enterprises. He also got federal grants for school research. He established the Stanford Industrial Park to reciprocate research between Stanford and local enterprises.


The University rented out land to Eastman Kodak, Lockheed, General electric, Varian Associates and Hewlett-Packard. Terman became provost of Stanford in 1955. He extended the park to take in biotech companies. In the year 1957, Fairchild semiconductor established, giving rise to 38 companies including Intel.

In 1971, the name “Silicon Valley USA” was used for the first time. Journalist Don Hoefler mentioned the word Silicon Valley for a series of articles that published in Electronic News.

Silicon Valley Companies

World-famous Silicon Valley companies include Google, Facebook, Apple and Netflix. The region also has a base of Twitter, Yahoo, eBay and Tesla. Oracle, Hewlett-Packard, Intel, Cisco, Salesforce are some of the business support companies present here and backing up the world with their robust software and hardware.

Image result for silicon valley companies

Some of the other companies here are Adobe, Intuit and Zynga. These companies are in fact the backbone of the information technology revolution that has set in motion in the world.

Reasons Behind Silicon Valley’s Success

Image result for silicon valley illustration


The primary reason behind the success of Silicon Valley is its conducive ideology and eagerness for cooperation.

For instance, many founders of local enterprises went to school together. Due to the reason, they promoted each other irrespective of company association.

Personal relationship overruled corporate ones. Professional networks helped in easy exchange of information and companies thought that association between them made them more successful.


The state of California forbids non-competes clause. With this, top performers could leave an organization to start their own company to try out new ideas. As a result, employees can focus on helping each other solve issues.

Another reason is the cultural diversity of Silicon Valley.

More than half of its startups were established by outsiders. The valley is known to allure engineers from all over the world, from different countries, different cultures and different outlooks. Most of the engineers working at the Silicon Valley are reportedly from Asian countries majorly India and China. Diversification contributes to innovations considering everyone focus on their shared objectives.



Note :: Images sourced from Google Images, Pexels and Pixabay. 

Show comments

Join the discussion

One reply to “You Won’t Believe How Silicon Valley Became Silicon Valley”

  1. Hairstyles says:

    Thanks a lot for giving everyone an exceptionally nice possiblity to read from this site. It really is so nice plus full of a great time for me and my office colleagues to visit your web site at a minimum three times in one week to see the latest items you have got. And of course, we are actually fascinated considering the astonishing strategies served by you. Certain 3 facts in this article are clearly the best we have ever had.

Leave a Reply

Your email address will not be published. Required fields are marked *