#356 How The Sun Rose On Silicon Valley: Bob Noyce (Founder of Intel‪)‬

The discussion centers on Tom Wolfe's 1983 Esquire article, "The Tinkerings of Robert Noyce," which chronicles the pivotal role Noyce played in the rise of Silicon Valley. Highlighting Noyce's significant contributions, the article details his creation of the integrated circuit, co-founding of Fairchild Semiconductor, and later, Intel. It emphasizes Noyce's innovative management style, his influence on key figures like Steve Jobs, and his belief in empowering young engineers. The narrative also touches on the complex dynamics with William Shockley and the transformative impact of Noyce's inventions on technology and industry.

• The discussed article is a long-form piece written for Esquire magazine in 1983 by Tom Wolfe, titled "The Tinkerings of Robert Noyce, How the Sun Rose on the Silicon Valley."
• The article is significant in the history of the technology industry, particularly Silicon Valley.
• Despite being written in 1983, the themes of technological revolution and human reaction remain relevant today.

"America is today in the midst of a great technological revolution. With the advent of the silicon chip, information processing and communications, the national economy has been strikingly altered. The new technology is changing how we live, how we work, how we think."

• This quote highlights the transformative impact of the silicon chip on society, drawing parallels to contemporary technological advancements.

• Robert Noyce was the founder of Fairchild Semiconductor and Intel, and a mentor to Steve Jobs.
• Known as the godfather of Silicon Valley, Noyce played a crucial role in shaping the tech industry.

"He was one of the giants in this valley who provided the model and inspiration for everything we wanted to become. He was the ultimate inventor, the ultimate rebel, the ultimate entrepreneur."

• Steve Jobs' admiration for Noyce underscores Noyce's profound influence on future tech leaders.

• The story begins in 1948 in Grinnell, Iowa, where Noyce's journey into technology started.
• Grinnell College physics professor Grant Gale introduced Noyce to the transistor, a pivotal moment in his career.

"Grinnell, Iowa was one of the last towns in America that people would have figured to become the starting point of a bolt into the future that would create the very substructure, the electronic grid of life in the year 2000 and beyond."

• This quote illustrates the unexpected origins of a technological revolution in a small town.

• The transistor, invented by John Bardeen and Walter Brattain at Bell Laboratories in 1948, was a groundbreaking development in electronics.
• Despite its initial obscurity, the transistor became one of the most important inventions of the 20th century.

"The transistor performed the same function as the vacuum tune, which is an essential component of telephone relay systems and radios at the time. But this transistor was 50 times smaller than a vacuum tube."

• The comparison between the transistor and the vacuum tube highlights the transistor's revolutionary impact on electronics.

• Paul Graham's essay on the importance of making oneself a big target for luck is exemplified in the lives of Grant Gale and Robert Noyce.
• Gale's curiosity and initiative in obtaining transistors for his students significantly influenced Noyce's career trajectory.

"When you read biographies of people who've done great work, it's remarkable how much luck is involved. They discover what to work on as a result of a chance meeting or by reading a book or a newspaper in this case, and they happen to pick up."

• This quote from Paul Graham emphasizes the role of serendipity and curiosity in achieving great work.

• Noyce was known for his rebellious nature and juvenile delinquency, which almost got him expelled from college.
• Grant Gale's mentorship and intervention were crucial in keeping Noyce on track.

"Just like Bob Noyce played a very influential and impactful role in the life of Steve Jobs, we see that Grant Gale played that same role for a young Bob Noyce."

• The parallel between Noyce's mentorship of Jobs and Gale's mentorship of Noyce highlights the importance of guidance in nurturing talent.

• After graduating from MIT in 1953, Noyce chose to work at Philco over more prestigious companies like Bell Laboratories and IBM.
• His decision was influenced by the potential for rapid advancement in a smaller, less advanced company.

"Philco was starting from near zero in semiconductor research and chances for rapid advancement seemed good for him."

• Noyce's preference for smaller, dynamic environments over established institutions is a recurring theme in his career.

• In 1955, William Shockley, a Nobel Prize-winning physicist, recruited Noyce to join Shockley Semiconductor Laboratory in Palo Alto, California.
• This move marked the beginning of Noyce's significant contributions to Silicon Valley's tech industry.

"Shockley leaves Bell Labs, goes to Palo Alto, California, where he had grown up, and he's going there to start his own company, which is Shockley Semiconductor laboratory."

• Shockley's role in bringing Noyce to Silicon Valley underscores the interconnectedness of influential figures in the tech industry.

• The article provides a detailed account of Robert Noyce's early life, education, and career, highlighting the pivotal moments and influences that shaped his contributions to the tech industry.
• Noyce's journey from a small town in Iowa to becoming a key figure in Silicon Valley exemplifies the transformative power of curiosity, mentorship, and serendipity in achieving great work.

• Bob Noyce's decision to move from Pennsylvania to California in 1956 to join William Shockley.
• Noyce's confidence and risk-taking nature demonstrated by moving his family and buying a house before securing a job with Shockley.

"After a couple telephone conversations with Shockley, Noyce put himself and Betty on a flight from Philadelphia to San Francisco. They arrived in Palo Alto at 06:00 a.m. By noon, Noyce had signed a contract to buy a house. That afternoon, he went to Mountain View to see Shockley and ask for a job, and he got it."

• Noyce's swift and decisive actions underline his confidence and proactive approach to opportunities.

• Shockley's brilliance contrasted with his poor people skills and lack of empathy.
• Shockley's negative view of humanity and his own family, leading to extreme actions like a suicide attempt.

"Shockley is the worst person I have ever covered on founders. He's the smartest dumb person you ever meet. He's the most intelligent yet idiotic person you will ever come across."

• Shockley's intelligence is overshadowed by his inability to effectively interact with others.

"In terms of my own capacities, my children represent a very significant regression. My first wife, their mother, had not as high an academic achievement standing as I had."

• Shockley's envy and self-pity, leading to depression and a suicide attempt.

"Dear Gene, I am sorry that I feel I can no longer go on. Most of my life, I have felt that the world was not a pleasant place and that people were not very. Not a very admirable form of life. I find that I am particularly dissatisfied with myself and that most of my actions are the consequences of motives of which I am ashamed."

• Shockley's tragic end, lacking social connections and a memorial service.

"She didn't even have a memorial service for her husband when he died, because she said, it's not clear who would have come."

• The departure of the "traitorous eight" from Shockley's company due to his poor management.
• The role of Arthur Rock in securing funding for the new venture, Fairchild Semiconductor.

"Bob Noyce is not one of the first seven defectors. There's going to be eight defectors that are going to be known throughout history as the traitorous eight."

• Noyce's leadership and the halo effect that drew others to follow him.

"Noyce was the one with the halo, and he was just 29 years old."

• The significance of Arthur Rock's involvement and his future impact on Silicon Valley companies.

"Arthur Rock is going to be one of the first, one of the first venture capitalists, and he's at Haydenstone. Eventually, he leaves. Arthur Rock will also be an early investor in Intel. Arthur Rock would also be an early investor in Apple."

• Fairchild Semiconductor's strategic decision to remain in California, contributing to the development of Silicon Valley.
• The impact of Stanford University's support for local engineering businesses.

"Stanford University was encouraging engineering businesses to locate near Palo Alto and use the university's research facilities."

• The role of the space race and the launch of Sputnik in accelerating the semiconductor and computer industries.

"In 1957, the Soviet Union launched Sputnik. In the electronics industry, the ensuing space race had the effect of coupling two new inventions, the transistor and the computer, and magnifying the importance of both."

• The challenges faced in producing transistors and the high failure rates.
• Noyce's innovation in creating the integrated circuit, which revolutionized the industry.

"Noyce had figured out a solution. There was something primitive about cutting individual transistors out of sheets of silicon and then wiring them back together in various series. Why not put them all on a single piece of silicon without wires?"

• The competition between Noyce and Jack Kilby in developing the integrated circuit.

"In January 1959, Noyce made his first detailed notes about a complete solid state circuit. A month later, Texas Instruments announced that Jack Kilby had invented one."

• The significance of the integrated circuit in miniaturizing computers and expanding the field of electronics.

"The integrated circuit made it possible to create miniature computers to put all the functions of the mighty Eniac on a panel the size of a playing card."

• Fairchild Camera's acquisition of Fairchild Semiconductor and its financial impact on Noyce and his colleagues.
• The broader implications of the integrated circuit for various industries and the future of technology.

"The next day, Bob Noyce, Gordon Moore, and all the Shockley traitorous eight, right, woke up richer than they had ever dreamed of being."

• The transformative potential of the integrated circuit, leading to innovations in fields from space exploration to robotics.

"The integrated circuit opened up fields that the transistor did not even suggest. The integrated circuit made it possible to create miniature computers to put all the functions of the mighty Eniac on a panel the size of a playing card."

These notes encapsulate the key themes and detailed insights from the transcript, providing a comprehensive overview of the discussed topics.

• Each of the eight traders received $250,000 worth of Fairchild stock, equivalent to $2.6 million today.
• This stock was 20 times the annual salary of $12,000 that Noyce was earning at the time.
• Noyce, at 31, was unsure how to handle his new wealth as the semiconductor business felt more like an esoteric game than a real business.

"Each of the traders, eight, received $250,000 worth of Fairchild stock. So I went back and put it into the inflation calculator that would be each of them equivalent of about $2.6 million in stock today."

• Illustrates the substantial wealth generated by the stock allocation.

"Noyce did not know what to make of his new wealth. He was 31 years old. The semiconductor business had not seemed like a business at all."

• Highlights Noyce's uncertainty about his newfound wealth and the nascent state of the semiconductor industry.

• NASA chose Noyce's integrated circuit for the first computers used in spacecraft.
• Orders poured in after NASA's endorsement, leading to explosive growth in Fairchild's sales and employee numbers.

"NASA chose Noyce's integrated circuit for the first computers that astronauts would use on board their spacecraft."

• NASA's choice significantly boosted Fairchild's reputation and orders.

"In ten years, Fairchild sales rose from a few thousand dollars a year to $130 million a year for a company that you paid $3 million for."

• Demonstrates the rapid and substantial growth of Fairchild Semiconductor.

• Noyce preferred a management style that gave significant responsibility to young engineers.
• He avoided hiring experienced management personnel, instead recruiting fresh graduates and giving them major responsibilities.

"Noyce didn't even bother trying to find experienced management personnel, because in this, in the semiconductor industry, that didn't exist because they're also inventing the industry at the same time."

• Indicates the novelty of the semiconductor industry and the lack of experienced personnel.

"Some 24-year-old just out of graduate school would find himself in charge of a major project with no one looking over his shoulder."

• Highlights the significant responsibility given to young engineers at Fairchild.

• Defectors from Fairchild, known as the "Fairchildren," started over 50 companies, turning Santa Clara Valley into Silicon Valley.
• They adopted Noyce's management style and became deeply absorbed in their companies.

"The defectors had a name. The defectors were called the Fairchildren."

• The term "Fairchildren" signifies the influence of Fairchild's alumni.

"The new breed of Silicon Valley were disciplined. They became absorbed in their companies the way men once had in the palmy days of the automobile industry."

• Draws a parallel between the dedication of Silicon Valley engineers and early automobile industry pioneers.

• Noyce's invention enabled the integration of multiple circuits on a single silicon chip, leading to exponential growth in circuit density over the years.
• By 1968, Noyce had numerous patents, and his inventions made significant contributions to space exploration, including the Apollo 8 mission.

"In 1959, Noyce's invention had made it possible to put an entire electrical circuit on a chip of silicon the size of a fingernail."

• Marks the beginning of significant advancements in semiconductor technology.

"As a direct result of Noyce's invention, the invention made the flight of the Apollo 8 possible."

• Highlights the impact of Noyce's invention on space exploration.

• Noyce and Moore left Fairchild to found Intel, securing funding from Arthur Rock and other sources.
• They aimed to innovate in data storage and memory, rather than competing in the established semiconductor market.

"Noyce and Moore had developed the 1103 memory chip. Each chip contained 4000 transistors and did the work of a thousand ceramic ringlets and did it faster."

• Describes Intel's breakthrough product that revolutionized computer memory.

"They merely told Rock what they wanted to do. And then they said, they're going to put up 500,000 of their own money."

• Shows the confidence and commitment Noyce and Moore had in their new venture.

• Noyce implemented a flat organizational structure at Intel, with minimal management layers and a focus on autonomy and innovation.
• Stock options were given to all engineers and most office workers to incentivize long-term research and development.

"Noyce decided to eliminate the notion of levels of management altogether."

• Emphasizes Noyce's unconventional approach to corporate structure.

"From the beginning, Noyce gave all the engineers and most of the office workers stock options."

• Highlights the incentive structure that encouraged innovation and loyalty.

• Intel's culture was more like a congregation than a corporation, with regular sessions on company principles led by Andy Grove.
• The company experienced rapid growth, with sales and employee numbers increasing exponentially within a few years.

"At these sessions, the principles by which the company were run were spelled out and discussed."

• Indicates the importance of shared values and principles at Intel.

"In 1972, sales were 23 million and it was 1000 people working there. The next year, sales went to 66 million and they had 2500 employees."

• Demonstrates the rapid growth and success of Intel.

By focusing on these key themes and supporting them with relevant quotes and explanations, these notes provide a comprehensive overview of the transcript's core messages.

• Intel's Unique Approach to Problem-Solving:
  • Intel encourages proactive problem-solving and innovation.
  • Employees are expected to take initiative and think beyond conventional methods.

"At Intel, you take the ball yourself and you let the air out of the ball and you fold up the ball and you put it in your pocket. Then you take another ball and you run with it. And when you've crossed the goal, you take the second ball out of your pocket and reinflate it and score twelve points instead of six."

• Explanation: Intel's culture emphasizes creative problem-solving and maximizing opportunities through unconventional methods.

• Performance Ratings System:

  • Intel implemented a performance rating system akin to a report card.
  • Employees were graded on a scale from superior to does not meet requirements.

"Grove was the inspiration for performance. Ratings were kind of like a report card. And so all the employees are graded. There's, let's see, five different ways you could be graded. It sounds a lot like ABCD and F. So it's superior, exceeds requirements, meets requirements, marginally meets requirements, and does not meet requirements."

• Explanation: This system provided clear feedback and motivated employees to strive for excellence.

• Honest Feedback and Ambition:

  • Robert Noyce believed in the importance of honest feedback for ambitious and hardworking individuals.
  • The grading system at Intel was a response to the lack of honest grades in educational institutions during the Vietnam War era.

"If you're ambitious and hard working, Noyce said, you want to be told how you're doing."

• Explanation: Honest feedback is crucial for personal and professional growth, especially for those with high aspirations.

• Significance of the Microprocessor:
  • Ted Hoff's invention of the microprocessor revolutionized the semiconductor industry.
  • The microprocessor enabled the creation of small computers, surpassing previous technological limitations.

"An Intel engineer named Ted Hoff came up with an invention as important as Noyce's integrated circuit had been a decade earlier. He invented the microprocessor, which was known as a computer on a chip."

• Explanation: The microprocessor was a groundbreaking innovation that expanded the possibilities of computing technology.

• Nurturing Young Talent:

  • Noyce believed that innovation is driven by young talent.
  • He provided young engineers with resources, freedom, and responsibility to foster their creativity.

"In Ted Hoff, Noyce was looking at proof enough of his hypothesis that out here on the electrical frontier, the great flashes came to the young."

• Explanation: Supporting young innovators can lead to significant technological advancements.

• Transition of Leadership:
  • As Intel grew, Noyce transitioned leadership to Gordon Moore and Andy Grove.
  • Noyce focused on being the spokesman of Silicon Valley and received significant recognition for his contributions.

"In 1974, Noyce turned over the actual running of Intel to Gordon Moore and Andy Grove and kicked himself upstairs to become chairman of the board."

• Explanation: Effective leadership transitions are essential for sustaining company growth and innovation.

• Recognition and Achievements:

  • Noyce received the National Medal of Science and was inducted into the National Inventors Hall of Fame.
  • Intel's sales grew exponentially, and Noyce's fortune and contributions were widely acknowledged.

"He was awarded the National Medal of Science from the White House in 1980, and he was inducted into the National Inventors Hall of Fame in 1983."

• Explanation: Noyce's leadership and innovations had a lasting impact on the technology industry and were recognized at the highest levels.

• Importance of Market Education:
  • Introducing radical innovations like the microprocessor required educating the market.
  • Intel conducted numerous seminars and workshops to familiarize potential customers with the new technology.

"When you are trying to convince an audience to accept a radical innovation, almost by definition, the idea is so far from the status quo that many people simply cannot get their minds around it."

• Explanation: Educating the market is crucial for the acceptance and success of innovative products.

• Role of Founders in Education:

  • Founders like Bob Noyce, Gordon Moore, and Andy Grove played a direct role in educating the market.
  • They became part of a traveling educational roadshow to promote the microprocessor.

"Bob Noyce, Gordon Moore, and Andy Grove became part of a traveling educational roadshow. They became educators, and it worked."

• Explanation: Founders must actively engage in educating the market to ensure the success of their innovations.

• Sony's Approach to Market Education:
  • Akio Morita, founder of Sony, emphasized the importance of preparing the market for new products.
  • He compared this process to a Japanese gardening technique called nimawashi, which involves careful preparation.

"One must prepare the groundwork among the customers before you can expect success in the marketplace. It is a time-honored Japanese gardening technique to prepare a tree for transplanting by slowly and carefully binding the roots over a period of time, bit by bit, to prepare the tree for the shock of the change it is about to experience."

• Explanation: Preparing the market for new products requires time, patience, and careful planning.

• Common Themes in Market Education:

  • Both Intel and Sony recognized the importance of educating customers about new products.
  • Effective market education can lead to the successful adoption of innovative technologies.

"The idea that it's very important that when you're bringing a new product to market, that you realize you have to educate the customers about why the product exists and what it can do for them is really, really important."

• Explanation: Educating customers about the benefits and applications of new products is essential for market success.