William Shockley in the context of "Mountain View, California"

A transistor is a semiconductor device used to amplify or switch electrical signals and power. It is one of the basic building blocks of modern electronics. It is composed of semiconductor material, usually with at least three terminals for connection to an electronic circuit. A voltage or current applied to one pair of the transistor's terminals controls the current through another pair of terminals. Because the controlled (output) power can be higher than the controlling (input) power, a transistor can amplify a signal. Some transistors are packaged individually, but many more in miniature form are found embedded in integrated circuits. Because transistors are the key active components in practically all modern electronics, many people consider them one of the 20th century's greatest inventions.

Physicist Julius Edgar Lilienfeld proposed the concept of a field-effect transistor (FET) in 1925, but it was not possible to construct a working device at that time. The first working device was a point-contact transistor invented in 1947 by physicists John Bardeen, Walter Brattain, and William Shockley at Bell Labs who shared the 1956 Nobel Prize in Physics for their achievement. The most widely used type of transistor, the metal–oxide–semiconductor field-effect transistor (MOSFET), was invented at Bell Labs between 1955 and 1960. Transistors revolutionized the field of electronics and paved the way for smaller and cheaper radios, calculators, computers, and other electronic devices.

The semiconductor industry is the aggregate of companies engaged in the design and fabrication of semiconductors and semiconductor devices, such as transistors and integrated circuits. Its roots can be traced to the invention of the transistor by Shockley, Brattain, and Bardeen at Bell Labs in 1948. Bell Labs licensed the technology for $25,000, and soon many companies, including Motorola (1952), Shockley Semiconductor (1955), Sylvania, Centralab, Fairchild Semiconductor and Texas Instruments were making transistors. In 1958 Jack Kilby of Texas Instruments and Robert Noyce of Fairchild independently invented the Integrated Circuit, a method of producing multiple transistors on a single "chip" of Semiconductor material. This kicked off a number of rapid advances in fabrication technology leading to the exponential growth in semiconductor device production, known as Moore's law that has persisted over the past six or so decades. The industry's annual semiconductor sales revenue has since grown to over $481 billion, as of 2018.

In 2010, the semiconductor industry had the highest intensity of Research & Development in the EU and ranked second after Biotechnology in the EU, United States and Japan combined.

Frederick Emmons Terman (/ˈtɜːrmən/; June 7, 1900 – December 19, 1982) was an American professor and academic administrator. He was the dean of the school of engineering from 1944 to 1958 and provost from 1955 to 1965 at Stanford University. He is widely credited (together with William Shockley) as being the father of Silicon Valley.

In 1951 he spearheaded the creation of Stanford Industrial Park (now Stanford Research Park), whereby the university leased portions of its land to high-tech firms. Companies such as Varian Associates, Hewlett-Packard, Eastman Kodak, General Electric, and Lockheed Corporation moved into Stanford Industrial Park and made the mid-Peninsula area into a hotbed of innovation which eventually became known as Silicon Valley.