The Semiconductor Story

How Eight Rebellious Scientists Built the Foundation of Modern Civilization

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Chapter One

The Transistor

December 1947 — Bell Labs, Murray Hill, New Jersey

In a basement laboratory at Bell Labs, two physicists named John Bardeen and Walter Brattain pressed gold contacts into a piece of germanium and changed the world.

It was December 16, 1947. The device they created—christened the “transistor” by a colleague—could do what only vacuum tubes had done before: amplify an electrical signal. But it was smaller, more reliable, and didn't burn out.

Their team leader, William Shockley, had conceived the theoretical approach but had been absent for the crucial breakthrough. He would spend the next decade taking credit, earning a Nobel Prize alongside them, and planting the seeds of his own downfall.

A magnificent Christmas present.

William ShockleyDescribing the December 23rd demonstration to management, 1947

The transistor didn't immediately replace vacuum tubes. But the scientists at Bell Labs understood its potential. This was the first step toward the end of mechanical computing and the birth of the digital age.

How a Transistor Works

Source
Gate
Drain

The Source contains electrons waiting to flow.

John Bardeen

The Quiet Genius

1908-1991

  • Co-invented the transistor at Bell Labs (1947)
  • Only person to win two Nobel Prizes in Physics (1956, 1972)
  • Developed surface states theory enabling transistor operation

Science is a collaborative effort. The combined results of several people working together is often much more effective than could be that of an individual scientist working alone.

Walter Brattain

The Experimentalist

1902-1987

  • Built the physical device that proved transistor theory
  • Expert in surface physics and semiconductor materials
  • Shared 1956 Nobel Prize in Physics

It is at a surface where many of our most interesting and useful phenomena occur.

William Shockley

The Brilliant Tyrant

1910-1989

  • Led Bell Labs team that invented the transistor
  • Invented the bipolar junction transistor (1948)
  • Founded Shockley Semiconductor, spawning Silicon Valley

If you take a bale of hay and tie it to the tail of a mule and then strike a match and set the bale of hay on fire, and if you then compare the energy expended shortly thereafter by the mule with the energy expended by yourself in striking the match, you will understand the concept of amplification.

Chapter Two

The Traitorous Eight

September 1957 — Mountain View, California

William Shockley was a genius, a Nobel laureate, and an impossible boss. He demanded loyalty tests, suspected sabotage, and treated his employees with contempt.

In 1956, he had recruited the brightest young minds in semiconductors to his new laboratory in Mountain View. By 1957, eight of them had had enough.

On September 18, 1957, Robert Noyce, Gordon Moore, and six colleagues resigned and signed a contract with Sherman Fairchild to start their own company. Shockley called them the “traitorous eight.” The name stuck—and became a badge of honor.

The Traitorous Eight: Julius Blank, Victor Grinich, Jean Hoerni, Eugene Kleiner, Jay Last, Gordon Moore, Robert Noyce, Sheldon Roberts

Fairchild Semiconductor would become the seedbed of Silicon Valley. The eight founders and their employees would go on to create Intel, AMD, National Semiconductor, and dozens more companies. The pattern of employees leaving to start competitors became the Valley's defining feature—and its engine of innovation.

Robert Noyce

The Mayor of Silicon Valley

1927-1990

  • Co-invented the integrated circuit (1959)
  • Co-founded Fairchild Semiconductor and Intel
  • Set Silicon Valley's collaborative, egalitarian culture

Knowledge is power. Knowledge shared is power multiplied.

Gordon Moore

The Prophet

1929-2023

  • Formulated Moore's Law (1965)
  • Co-founded Intel with Robert Noyce
  • Guided semiconductor industry for 50+ years

If the auto industry advanced as rapidly as the semiconductor industry, a Rolls Royce would get half a million miles per gallon, and it would be cheaper to throw it away than to park it.

Chapter Three

Two Paths to Integration

1958–1959 — Texas and California

In the summer of 1958, a new Texas Instruments employee named Jack Kilby had a problem: he had no vacation time accumulated while the rest of the company emptied for summer break.

Alone in the lab, he had time to think. What if you could build an entire circuit—transistors, resistors, capacitors—on a single piece of semiconductor?

On September 12, 1958, Kilby demonstrated a working integrated circuit to TI management. It was crude—connected by fine gold “flying wires”—but it worked.

Six months later and 1,500 miles away, Robert Noyce had the same idea but a better solution. Using the planar process developed by his colleague Jean Hoerni, Noyce conceived of printing the connections directly onto the chip. No flying wires. Manufacturable at scale.

While Robert and I followed our own paths, we worked hard together to achieve commercial acceptance for integrated circuits. If he were still living, I have no doubt we would have shared this prize.

Jack KilbyNobel Prize Acceptance Speech, 2000

Jack Kilby

The Inventor

1923-2005

  • Invented the first integrated circuit at Texas Instruments (1958)
  • Nobel Prize in Physics (2000)
  • Co-invented the handheld calculator

While Robert and I followed our own paths, we worked hard together to achieve commercial acceptance for integrated circuits. If he were still living, I have no doubt we would have shared this prize.

Nobel Prize Acceptance Speech, 2000
Chapter Four

The Prophecy

April 19, 1965

In April 1965, Electronics magazine asked Gordon Moore to predict the future of integrated circuits. Moore, then director of R&D at Fairchild, looked at five data points—five years of transistor counts—and drew a line.

The complexity for minimum component costs has increased at a rate of roughly a factor of two per year. By 1975, economics may dictate squeezing as many as 65,000 components on a single silicon chip.

Gordon MooreElectronics Magazine, 1965

It was a wild extrapolation. Moore knew it. But the prediction took on a life of its own. Caltech professor Carver Mead dubbed it “Moore's Law,” and the semiconductor industry adopted it not as an observation but as a roadmap.

Moore's Law wasn't a law of physics. It was a coordination mechanism—a shared expectation that synchronized R&D investments across competing companies. For fifty years, the industry collectively agreed to make Moore's prediction come true.

Moore's Law in Action

Transistor counts over 50+ years

1971
Intel 40042.3K
1974
Intel 80804.5K
1978
Intel 808629.0K
1982
Intel 286134.0K
1985
Intel 386275.0K
1989
Intel 4861.2M
1993
Pentium3.1M
1999
Pentium III9.5M
2004
Pentium 4125.0M
2010
Core i71.2B
2017
EPYC19.2B
2022
Apple M1 Ultra114.0B
2024
Apple M3 Ultra184.0B
Chapter Five

Only the Paranoid Survive

1968–1998 — Intel

Intel was founded in 1968 to make memory chips. For years, that's what it did—and did well. But by the mid-1980s, Japanese manufacturers were eating Intel's lunch.

Andy Grove, Intel's third employee and eventual CEO, faced a choice: keep fighting a losing battle or abandon the company's core business. He chose to abandon.

If we got kicked out and the board brought in a new CEO, what would he do? He would get us out of memories.

Andy GroveTo Gordon Moore during the memory crisis, 1985

Intel pivoted from memory chips to microprocessors—the CPUs that power personal computers. The 386, the 486, the Pentium. The “Intel Inside” campaign. The company that almost died in the memory wars became the most valuable semiconductor company in the world.

Andy Grove

The Paranoid Survivor

1936-2016

  • Third employee of Intel, CEO 1987-1998
  • Led pivot from memory chips to microprocessors
  • TIME Man of the Year (1997)

Success breeds complacency. Complacency breeds failure. Only the paranoid survive.

Only the Paranoid Survive (1996)
Chapter Six

Everybody's Foundry

February 21, 1987 — Hsinchu, Taiwan

Morris Chang spent 25 years at Texas Instruments, rising to Group Vice President. He knew semiconductors. He also knew something the industry hadn't figured out: not every company needs to own a fabrication facility.

In 1987, with backing from the Taiwanese government and technology from Philips, Chang founded TSMC—Taiwan Semiconductor Manufacturing Company. The pitch was simple: “We are everybody's foundry.”

The industry thought he was crazy. Intel and Texas Instruments both declined to partner. Why would anyone separate design from manufacturing?

Without strategy, execution is aimless. Without execution, strategy is useless.

Morris ChangTSMC Leadership Philosophy

The answer came from startups. Companies like NVIDIA and Qualcomm could now design cutting-edge chips without building billion-dollar fabs. The “fabless” semiconductor industry was born. And TSMC became its enabler.

60%+Global foundry market share
90%Advanced chip production

Morris Chang

The Foundry Father

1931-present

  • Founded TSMC (1987) at age 56
  • Created the pure-play foundry business model
  • Transformed Taiwan into semiconductor superpower

Without strategy, execution is aimless. Without execution, strategy is useless.

Chapter Seven

The Impossible Machine

1990–2024 — Netherlands to the World

To print features smaller than the wavelength of visible light, you need light that doesn't exist in nature—at least not usefully.

Extreme Ultraviolet (EUV) lithography uses light with a wavelength of 13.5 nanometers, generated by a process that sounds like science fiction.

A laser pulse hits a tiny droplet of molten tin traveling at 70 meters per second. The tin vaporizes into plasma, emitting EUV light. That light bounces off mirrors so precise that if scaled to the size of Germany, the largest imperfection would be one millimeter tall.

ASML, a Dutch company, is the only manufacturer of EUV machines in the world. Each machine costs $150–200 million. The newest High NA EUV machines cost $350 million. They contain 100,000 parts from 5,000 suppliers across dozens of countries.

The EUV machine is arguably the most complex device ever built. It took 30 years and tens of billions of dollars to develop. And it's the only reason your phone can have a chip with 16 billion transistors.

Chapter Eight

The New Oil

2020–Present — Global

In 2020, the world discovered what semiconductor engineers had known for decades: everything depends on chips, and chips depend on a fragile supply chain concentrated in a geopolitically unstable region.

The pandemic disrupted manufacturing. Cars sat unfinished in lots, waiting for chips. Medical equipment was delayed. A shortage of $1 chips shut down production of $40,000 vehicles.

The U.S. government woke up. In August 2022, President Biden signed the CHIPS and Science Act, committing $52 billion to rebuild domestic semiconductor manufacturing.

Taiwan—home to TSMC and 90% of advanced chip production—sits 100 miles from China, which claims the island as its own. A conflict there wouldn't just be a regional tragedy. It would be a global technological catastrophe.

Chips have become the new oil: a strategic resource that determines economic and military power. The countries that control chip manufacturing control the future.

Chapter Nine

What Happens Next

The Present and the Future

Moore's Law is slowing but not dead. We've reached 3 nanometers—atoms are about 0.1 nanometers. We're approaching fundamental physical limits.

But the demand for computing has never been higher. AI requires exponentially more processing power. Large language models needed thousands of advanced chips to train. The next generation will need more.

The race isn't just technological anymore. It's geopolitical. The United States, China, Taiwan, Korea, Japan, and Europe are all investing billions to secure chip manufacturing capability.

The Invisible Foundation

No one knows what happens next. Will Moore's Law find new life in new materials, new architectures, new physics? Will the supply chain diversify or concentrate further? Will the Taiwan Strait remain peaceful?

What we do know: the invisible technology that powers modern civilization is no longer invisible. The semiconductor story is now everyone's story.

Key Moments in Semiconductor History

Dec 23, 1947

The Transistor Demonstrated

Bell Labs unveils the point-contact transistor to management

1956

Nobel Prize Awarded

Shockley, Bardeen, and Brattain share Physics Nobel

Sep 18, 1957

The Traitorous Eight Defect

Eight engineers leave Shockley to found Fairchild

Sep 12, 1958

First Integrated Circuit

Jack Kilby demonstrates IC at Texas Instruments

1959

Planar Process

Noyce patents manufacturable integrated circuit

Apr 19, 1965

Moore's Law Published

Gordon Moore predicts transistor doubling

Jul 18, 1968

Intel Founded

Noyce and Moore start Intel Corporation

Nov 15, 1971

Intel 4004 Released

First commercial microprocessor: 2,300 transistors

1985

Intel's Memory Exit

Grove pivots Intel from memory to microprocessors

Feb 21, 1987

TSMC Founded

Morris Chang creates the foundry model

2020

Global Chip Shortage

Pandemic exposes supply chain fragility

Aug 9, 2022

CHIPS Act Signed

US commits $52B to domestic semiconductor manufacturing