WEBVTT - The Intel Story Part One

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<v Speaker 1>Technology with tech Stuff from how stuff Works dot Com.

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<v Speaker 1>Hey there, and welcome to tech Stuff. I am your host,

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<v Speaker 1>Jonathan Strickland. I am a senior writer with how stuff

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<v Speaker 1>Works dot Com. I say that every show, and yet

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<v Speaker 1>some people are still surprised to know there is a

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<v Speaker 1>how stuff Works dot Com. There is and explains how

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<v Speaker 1>stuff works, not just technology, but all sorts of things.

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<v Speaker 1>So if you've ever been curious how something works, check

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<v Speaker 1>out our website. Chances are we've got some information about it. Today,

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<v Speaker 1>we're going to do another one of my wonderful episodes

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<v Speaker 1>about the history of a big company in technology. And

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<v Speaker 1>I use the word wonderful somewhat tongue in cheek because

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<v Speaker 1>it's weird to toot one's own horn. But I genuinely

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<v Speaker 1>enjoy researching these episodes because I always learned something that

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<v Speaker 1>I didn't know before about companies that I'm really from.

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<v Speaker 1>You're with from a product standpoint, but maybe not so

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<v Speaker 1>much behind the scenes. That's certainly the case with today's topic. Intel. Now,

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<v Speaker 1>Intel is a major player in the computers industry, obviously

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<v Speaker 1>in the semiconductor and microprocessor industries. Big big deal. But

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<v Speaker 1>I wanted to take this opportunity to kind of talk

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<v Speaker 1>about the history of the company, how it developed over time,

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<v Speaker 1>and sort of the contributions it has made to the

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<v Speaker 1>industry of electronics and computers. Right, So, chances are, at

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<v Speaker 1>some point or another in your life you've used a

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<v Speaker 1>device that had a little sticker on it that said

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<v Speaker 1>that there was Intel inside. The company is famous for

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<v Speaker 1>producing the chips that make our computers and electronics so powerful.

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<v Speaker 1>So they're famous for making the stuff that makes our

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<v Speaker 1>other stuff work. But what is the actual story behind

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<v Speaker 1>the company. Well, understand that we're gonna have to do

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<v Speaker 1>something that I'm infamous for doing, which is that we're

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<v Speaker 1>gonna have to go roll the clock back well before

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<v Speaker 1>there ever was an Intel, Because I really do think

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<v Speaker 1>that to have a true understanding of any subject, not

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<v Speaker 1>just a company, but really anything, you need to go

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<v Speaker 1>back quite a bit and get the foundation set before

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<v Speaker 1>you start just spouting off facts. I could tell you

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<v Speaker 1>that Intel was founded in the late nineteen sixties and

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<v Speaker 1>pick up from there, but without understanding the pathway that

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<v Speaker 1>lad there, you don't have as full and appreciation, At

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<v Speaker 1>least in my opinion, that's the case, certainly personally for me,

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<v Speaker 1>that's the case. So we're gonna look at a couple

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<v Speaker 1>of companies that preceded Intel to understand why there's an

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<v Speaker 1>Intel in the first place, and we'll talk about the

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<v Speaker 1>Traitorous Eight. There's treachery involved in this story, and we'll

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<v Speaker 1>also talk about Moore's Law that's going to play a

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<v Speaker 1>big part in this DISCUSSI and as well, because all

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<v Speaker 1>of this is wrapped up in the birth of Intel,

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<v Speaker 1>and it's a story of not just technology, but of people.

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<v Speaker 1>And as we all know, people are complicated critters. We're

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<v Speaker 1>capable of great and terrible things, and sometimes things that

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<v Speaker 1>are both great and terrible at the same time. So

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<v Speaker 1>today we're gonna look at some stories about people who

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<v Speaker 1>made amazing contributions to us in the form of engineering,

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<v Speaker 1>advancing science, understanding the physics of electronics at a deeper

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<v Speaker 1>level that allowed us to create incredible gadgets. But we'll

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<v Speaker 1>also learn some not so nice stuff, some things about

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<v Speaker 1>people that were at least disturbing, if not worse. But

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<v Speaker 1>much of our story is going to revolve around semiconductors.

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<v Speaker 1>So as a refresher, a semiconductor is a class of

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<v Speaker 1>material that has a much lower resistance to the flow

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<v Speaker 1>of electrical current in one direction than it does in

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<v Speaker 1>the other direction. If you listen to my episodes about

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<v Speaker 1>the history of electricity, you remember about the concept of resistance, right,

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<v Speaker 1>that's the tendency of any given material to resist the

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<v Speaker 1>flow of electrons. So, if you have something that's a

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<v Speaker 1>really good conductor, it tends to have a very low resistance.

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<v Speaker 1>It allows electrons to move through fairly free freely. But

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<v Speaker 1>something with a very high resistance, like a very very

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<v Speaker 1>high resistance that's an insulator, it doesn't allow electrons to

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<v Speaker 1>pass through nearly as easily. If you're able to take

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<v Speaker 1>a conductor and you're able to lower the temperature near

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<v Speaker 1>to absolute zero, it ends up becoming a superconductor, meaning

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<v Speaker 1>that there's no resistance at all, and it allows electrons

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<v Speaker 1>to pass through without any resistance. So resistance is this

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<v Speaker 1>tendency to again resist the flow of electrons. It turns

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<v Speaker 1>out that in some materials this is a variable where

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<v Speaker 1>under one set of circumstances, electrons will flow through very easily,

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<v Speaker 1>and under a different set of circumstances using that same material,

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<v Speaker 1>electrons will not flow through nearly as easily. These are

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<v Speaker 1>what we call semiconductors because sometimes they conduct and sometimes

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<v Speaker 1>they do not. It can be useful to think of

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<v Speaker 1>this as sort of like an inclined plane or a slide.

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<v Speaker 1>If you have a marble and you let it roll

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<v Speaker 1>down a slide, it does so easily with very little effort, right.

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<v Speaker 1>You just have to move it so it hits that

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<v Speaker 1>inclined plane and gravity does the rest of the work.

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<v Speaker 1>To move the marble back up the slide, you have

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<v Speaker 1>to put forth some effort. You have to push the

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<v Speaker 1>marble up the slide, working against gravity to do so.

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<v Speaker 1>Semiconductors are kind of similar, except we're talking about electrons,

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<v Speaker 1>not not large macro objects like marbles. And it's not

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<v Speaker 1>a perfect analogy, but it allows you to kind of

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<v Speaker 1>understand what's going on now. A semiconductor's tendency to allow

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<v Speaker 1>or prevent electricity from flowing through it can be altered

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<v Speaker 1>in a few different ways, depending upon the material. So,

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<v Speaker 1>for example, some semiconductor material will change its resistance if

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<v Speaker 1>you introduce some impurities into it. This is called doping,

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<v Speaker 1>where you strategically add in some of these impurities to

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<v Speaker 1>change it from being say pure silicon, to dope silicon.

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<v Speaker 1>And this would allow for the transfer of electrons in

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<v Speaker 1>one direction more easily, Or you might be able to

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<v Speaker 1>change the resistance of a semiconductor by applying a magnetic

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<v Speaker 1>field to it, or there are other ways of changing

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<v Speaker 1>Like I mentioned with superconductors, that's temperature. So there are

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<v Speaker 1>a lot of different factors that can change the way

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<v Speaker 1>a conductor conducts electricity, whether it's with little resistance or

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<v Speaker 1>with a great deal of resistance. The first recorded use

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<v Speaker 1>of the word semi conducting that I know of came

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<v Speaker 1>from Alessandro Volta. And again, if you listen to those

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<v Speaker 1>history of Electricity episodes, then you know that Volta was

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<v Speaker 1>an eighteenth century philosopher and inventor who created an early

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<v Speaker 1>battery called the voltaic pile. But as brilliant as Volta was,

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<v Speaker 1>he did not actually lay down any theories about what

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<v Speaker 1>semiconductors are or what was going on, largely because he

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<v Speaker 1>did not have a full understanding of what electricity was. Remember,

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<v Speaker 1>for for centuries people thought electricity was some form of fluid.

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<v Speaker 1>They hadn't didn't have a full understanding of what it

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<v Speaker 1>actually was. In the nineteenth century, you had Michael Faraday.

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<v Speaker 1>He was another scientist and he noticed that silver sulfides

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<v Speaker 1>electrical resistance would change at different temperatures. So he made

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<v Speaker 1>this observation. If he changed the temperature of silver sulfide,

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<v Speaker 1>the resistance would also change. Johan Hittorf, who was another

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<v Speaker 1>science has published a study about temperature dependence of the

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<v Speaker 1>electrical conductivity of certain materials, adding to more knowledge about

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<v Speaker 1>the nature of semiconductors. Several scientists formulated theories about semiconductors

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<v Speaker 1>and the factors that would cause them to change their

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<v Speaker 1>resistance to electrical flow, but it wouldn't be until the

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<v Speaker 1>mid twentieth century that someone figured out how they could

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<v Speaker 1>be used to solve what was becoming a very tricky problem. Now,

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<v Speaker 1>initially this problem was all about signal amplification. Now, signals

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<v Speaker 1>are very important in all sorts of different electronic applications,

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<v Speaker 1>and often the signal that you generate may be very

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<v Speaker 1>weak and you need to amplify it. You need to

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<v Speaker 1>increase the amplitude of the signal in order for you

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<v Speaker 1>to do something useful with it. Uh that it was

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<v Speaker 1>certainly the case with telephone communication. In the early twentieth century,

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<v Speaker 1>a little company called A T and T was struggling

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<v Speaker 1>with this because they were laying out a coast to

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<v Speaker 1>coast network of telephone lines. They were allowing for transcontinental

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<v Speaker 1>phone calls, but they needed to be able to boost

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<v Speaker 1>the signal that went along the telephone lines so that

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<v Speaker 1>the thing you heard on one end would be intelligible,

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<v Speaker 1>so that if I'm talking in Atlanta and I want

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<v Speaker 1>someone in San Francisco to hear me, the signal remains

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<v Speaker 1>strong throughout the entire journey from Atlanta to San Francisco.

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<v Speaker 1>So they needed to figure out a way to amplify signals,

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<v Speaker 1>and initially they were looking at using vacuum tubes. Now,

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<v Speaker 1>A T and D was really interested in innovating in

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<v Speaker 1>this space, largely because the company was starting to worry

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<v Speaker 1>about its patents, and it purchased several patents from Alexander

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<v Speaker 1>Graham Bell, who we attribute the creation of the telephone too,

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<v Speaker 1>and those patents were what allowed A. T and T

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<v Speaker 1>to maintain a strategic advantage over other potential competitors. But

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<v Speaker 1>patents expect they expire after a while, so once they expire,

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<v Speaker 1>that information isn't available for anyone to use without having

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<v Speaker 1>to pay a license. So the patent allows you to

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<v Speaker 1>see how how people are doing things, but it prevents

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<v Speaker 1>you from following that same example unless you license the

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<v Speaker 1>information from the patent holder. Well, once the patent expires,

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<v Speaker 1>it's free game. So A T and T was looking

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<v Speaker 1>at these patents expiring and they said, well, we really

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<v Speaker 1>need to innovate in other spaces to maintain our competitive advantage.

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<v Speaker 1>And you've heard me probably talk about A T and T.

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<v Speaker 1>I did some episodes about the company not that long ago,

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<v Speaker 1>and they were very good at maintaining their advantage for

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<v Speaker 1>a really long time, even after they got broken up

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<v Speaker 1>by the United States government. Well, they the company was

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<v Speaker 1>so concerned about this they even brought Thomas Vale out

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<v Speaker 1>of retirement, that was their former president of the company,

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<v Speaker 1>and they wanted to really tackle this problem. And again,

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<v Speaker 1>initially they started to use vacuum tubes as signal amplifiers.

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<v Speaker 1>These were devices that were invented by a guy named

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<v Speaker 1>Lee de Forest. And one day I will have to

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<v Speaker 1>do a full episode about vacuum tube technology and exactly

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<v Speaker 1>how it works, but it's a little outside the scope

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<v Speaker 1>of this episode. Now, one thing you should know is

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<v Speaker 1>vacuum tubes were not a perfect technology. They had a

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<v Speaker 1>lot of drawbacks. They were delicate, they could burn out,

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<v Speaker 1>so you'd have to replace them fairly regularly. Uh. They

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<v Speaker 1>were also very large and bulky, so you could not

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<v Speaker 1>have a small form factor for whatever device you were

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<v Speaker 1>using that had vacuum tube amplifiers in it, And they

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<v Speaker 1>generated a lot of heat, which in some applications is problematic.

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<v Speaker 1>Now there's some things where people still love to use

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<v Speaker 1>vacuum tubes as their signal amplifier. People who use amplifiers

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<v Speaker 1>for musical instruments love, generally speaking, amplifiers that use vacuum tubes.

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<v Speaker 1>They those are valued very highly in the musical field,

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<v Speaker 1>but for something like long distance telephone calls, it was

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<v Speaker 1>seen as sort of a band aid to the problem.

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<v Speaker 1>And so the company A T and T was really

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<v Speaker 1>interested in figuring out an alternative to these, and they

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<v Speaker 1>tasked their research and development ARM to try and come

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<v Speaker 1>up with something. That ARM was known as Bell Labs,

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<v Speaker 1>and they wanted to find an alternative to vacuum tubes,

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<v Speaker 1>something that could boost a signal similar to the tubes,

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<v Speaker 1>but take up a fraction of the size and put

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<v Speaker 1>out very little heat comparatively speaking. The team leader for

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<v Speaker 1>this project at Bell Labs was a guy named William

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<v Speaker 1>Bill Shockley. In a way, Shockley would become partly responsible

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<v Speaker 1>for the foundation of Intel, but it wasn't because he

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<v Speaker 1>was a founder of Intel. He wasn't. He was not

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<v Speaker 1>among the co founders of Intel. However, you could argue

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<v Speaker 1>that he was at least partly responsible for Intel ever existing.

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<v Speaker 1>Shockley was born in London, England, but both his parents

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<v Speaker 1>were American. His father was a mining engineer who had

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<v Speaker 1>contract work in the UK, and so I had moved

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<v Speaker 1>his family to the United Kingdom. His mother was one

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<v Speaker 1>of the first women to graduate Stanford, and she held

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<v Speaker 1>degrees in mathematics and art. Now, apparently the Shockley family

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<v Speaker 1>was a group of curmudgeon lely folks. They were a

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<v Speaker 1>little grouchy from all accounts. Uh. They might have had

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<v Speaker 1>arrestibility as a family feature. His parents never seemed to

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<v Speaker 1>be able to stay in one place for more than

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<v Speaker 1>a year, so they moved around a lot, and Shockley

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<v Speaker 1>himself would develop many of the same characteristics as his parents,

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<v Speaker 1>being a little difficult to be around, which is probably

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<v Speaker 1>a generous way of putting it. Now. Eventually, Shockley attended

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<v Speaker 1>the California Institute of Technology or cal Tech back in

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<v Speaker 1>nineteen and he majored in physics. He was apparently really

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<v Speaker 1>quite the prankster over at cal Tech, supposedly, as pranks

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<v Speaker 1>were the stuff of legend. I did not, however, look

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<v Speaker 1>into those for this episode. Maybe in the future one.

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<v Speaker 1>He pursued a doctorate at m I T in nineteen

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<v Speaker 1>thirty three, and then he became an apprentice to a

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<v Speaker 1>man named Philip Morse, and as a result he got

0:14:31.000 --> 0:14:34.760
<v Speaker 1>a job at Bell Labs. He gained a reputation as

0:14:34.800 --> 0:14:38.600
<v Speaker 1>a brilliant and innovative problem solver. Now this is a

0:14:38.600 --> 0:14:41.440
<v Speaker 1>bit of a tangent, but it's an example of his

0:14:41.600 --> 0:14:46.000
<v Speaker 1>sense of innovation. Uh. He was one of the people

0:14:46.040 --> 0:14:49.640
<v Speaker 1>who made an early design for a nuclear reactor. He

0:14:49.720 --> 0:14:52.800
<v Speaker 1>actually partnered with a guy named James Fisk to work

0:14:52.840 --> 0:14:55.560
<v Speaker 1>on this. They were trying to suss out how you

0:14:55.600 --> 0:14:59.800
<v Speaker 1>could make a sustained nuclear reaction, and Shockley's idea was

0:14:59.840 --> 0:15:03.400
<v Speaker 1>that you could use uranium and little chunks, and you

0:15:03.440 --> 0:15:06.360
<v Speaker 1>could separate the chunks of uranium from each other using

0:15:06.400 --> 0:15:09.520
<v Speaker 1>some other material, and the purpose of that material would

0:15:09.520 --> 0:15:13.320
<v Speaker 1>be to slow down but not capture neutrons as they're

0:15:13.320 --> 0:15:17.000
<v Speaker 1>given off by the uranium, and by doing that allowing

0:15:17.000 --> 0:15:20.400
<v Speaker 1>the neutrons to hit other atoms of you two thirty

0:15:20.480 --> 0:15:25.080
<v Speaker 1>five and thus generate more neutrons as the YOUTO thirty

0:15:25.120 --> 0:15:29.360
<v Speaker 1>five would decay, and these new these neutrons would then

0:15:29.680 --> 0:15:33.960
<v Speaker 1>move out to again uh impact other you too thirty

0:15:34.000 --> 0:15:37.640
<v Speaker 1>five atoms and sustain the reaction so that you would

0:15:37.680 --> 0:15:42.120
<v Speaker 1>just continuously have this release of radioactive energy. Now, their

0:15:42.160 --> 0:15:45.240
<v Speaker 1>work would end up being classified by the US government,

0:15:45.680 --> 0:15:49.080
<v Speaker 1>as this was during World War two and considered highly

0:15:49.200 --> 0:15:53.840
<v Speaker 1>dangerous material. It turned out that the scientists who were

0:15:53.880 --> 0:15:57.320
<v Speaker 1>working on the Manhattan Project we're concentrating on essentially the

0:15:57.360 --> 0:16:01.760
<v Speaker 1>same thing that Fiskin and Shockley we're thinking about, except,

0:16:02.000 --> 0:16:04.400
<v Speaker 1>of course, Shockley and fisk were mostly interested in a

0:16:04.520 --> 0:16:07.520
<v Speaker 1>nuclear reactor, whereas the Manhattan Project was all about a

0:16:07.560 --> 0:16:11.120
<v Speaker 1>more uncontrolled nuclear reaction to create a bomb. But they

0:16:11.160 --> 0:16:14.000
<v Speaker 1>were all working on similar things. They didn't have any

0:16:14.040 --> 0:16:16.400
<v Speaker 1>knowledge of each other because the US government was very

0:16:16.480 --> 0:16:19.920
<v Speaker 1>much concerned with keeping this stuff secret and safe from

0:16:19.960 --> 0:16:23.960
<v Speaker 1>potential enemies, so they didn't know anything about each other's

0:16:24.000 --> 0:16:27.760
<v Speaker 1>projects until after World War two had ended. Now, before

0:16:27.800 --> 0:16:30.720
<v Speaker 1>the war, Shockley had actually worked with a guy named

0:16:30.760 --> 0:16:35.480
<v Speaker 1>Walter Brittaine who together they were trying to create this

0:16:36.000 --> 0:16:40.200
<v Speaker 1>alternative to vacuum tube technology, a solid state alternative to

0:16:40.400 --> 0:16:43.680
<v Speaker 1>vacuum tube amplifiers. But while they were working on it,

0:16:43.680 --> 0:16:46.320
<v Speaker 1>it didn't go anywhere. They couldn't create something that was

0:16:46.360 --> 0:16:50.960
<v Speaker 1>actually working. Then the war happened and their attentions were elsewhere.

0:16:51.520 --> 0:16:55.520
<v Speaker 1>But after the war, Shockley decided to try this again.

0:16:55.560 --> 0:16:59.000
<v Speaker 1>They brought on another theorist over to Bell Labs named

0:16:59.160 --> 0:17:03.600
<v Speaker 1>John Bardine now Bardein and Britain we're starting to work

0:17:03.640 --> 0:17:07.280
<v Speaker 1>together closely to try and create this alternative vacuum tubes.

0:17:08.000 --> 0:17:13.000
<v Speaker 1>And Shockley was the administrative leader for their team, but

0:17:13.720 --> 0:17:16.600
<v Speaker 1>he was mostly working on his own, on his own

0:17:16.600 --> 0:17:20.320
<v Speaker 1>little processes and inventions, so he would occasionally stop in

0:17:20.760 --> 0:17:23.879
<v Speaker 1>see what the two were working on, give some guidance

0:17:23.960 --> 0:17:27.359
<v Speaker 1>or maybe some suggestions, and then he would head off

0:17:27.359 --> 0:17:30.679
<v Speaker 1>and work on his own some more so, he was

0:17:30.720 --> 0:17:35.080
<v Speaker 1>not actually part of the team that on December six,

0:17:35.480 --> 0:17:40.680
<v Speaker 1>ninety seven unveiled the first working transistor, a solid state

0:17:40.720 --> 0:17:44.240
<v Speaker 1>alternative to vacuum tube technology. In staid that was Britain

0:17:44.320 --> 0:17:48.520
<v Speaker 1>and Bardin who created that first point contact resist transistor,

0:17:49.280 --> 0:17:52.640
<v Speaker 1>and that would become the foundation for the electronics industry.

0:17:52.760 --> 0:17:56.760
<v Speaker 1>The transistor. That is not the point contact version, just

0:17:56.880 --> 0:18:01.400
<v Speaker 1>the transistor in general. And I've done episodes about transistor,

0:18:01.480 --> 0:18:03.200
<v Speaker 1>so I'm not going to talk about it too much.

0:18:03.240 --> 0:18:07.159
<v Speaker 1>But the reason our electronics are so small is because

0:18:08.240 --> 0:18:11.280
<v Speaker 1>engineers developed the transistor. Otherwise we would still be dependent

0:18:11.320 --> 0:18:13.800
<v Speaker 1>upon vacuum tubes, and that would really limit the types

0:18:13.840 --> 0:18:17.119
<v Speaker 1>of technology we could have at our disposal because they

0:18:17.160 --> 0:18:20.680
<v Speaker 1>would be so bulky and hot. Uh So it really

0:18:20.760 --> 0:18:26.200
<v Speaker 1>did open up an enormous world of opportunity for really

0:18:26.800 --> 0:18:30.280
<v Speaker 1>everyone ultimately, but especially a T and T early on

0:18:30.880 --> 0:18:36.520
<v Speaker 1>now Shockley reportedly had a complicated reaction to the development

0:18:36.680 --> 0:18:39.920
<v Speaker 1>of this first transistor. On one hand, he was really

0:18:39.960 --> 0:18:42.520
<v Speaker 1>proud of his team. He was leading a team that

0:18:42.680 --> 0:18:47.480
<v Speaker 1>had made a major scientific and engineering breakthrough with the

0:18:47.480 --> 0:18:51.880
<v Speaker 1>invention of the transistor. But on the other end, he

0:18:52.119 --> 0:18:55.520
<v Speaker 1>was a little disappointed and frustrated that he was not

0:18:55.840 --> 0:18:58.600
<v Speaker 1>directly part of this team. And he also had his

0:18:58.720 --> 0:19:01.159
<v Speaker 1>pride hurt quite a bit because he had attempted to

0:19:01.240 --> 0:19:04.120
<v Speaker 1>do the same thing before World War Two but could

0:19:04.119 --> 0:19:06.560
<v Speaker 1>never get it to work. But these other two guys,

0:19:06.640 --> 0:19:09.280
<v Speaker 1>they got it to work. So I am a feeling

0:19:09.280 --> 0:19:12.080
<v Speaker 1>that he felt a little upset that he did not

0:19:12.240 --> 0:19:16.680
<v Speaker 1>come up with the solution to this problem, rather these

0:19:16.720 --> 0:19:20.840
<v Speaker 1>other two guys did. He didn't let that completely derail him. However,

0:19:21.400 --> 0:19:24.880
<v Speaker 1>while he was in a hotel room in Chicago, where

0:19:24.920 --> 0:19:29.040
<v Speaker 1>he was attending the American Physical Society convention, he came

0:19:29.119 --> 0:19:32.399
<v Speaker 1>up with an alternative to the point contact transistor called

0:19:32.440 --> 0:19:37.119
<v Speaker 1>the sandwich transistor, which was easier to manufacture than the

0:19:37.240 --> 0:19:41.840
<v Speaker 1>point contact type, so it ended up immediately being a

0:19:41.880 --> 0:19:45.840
<v Speaker 1>replacement for this initial design of transistors. It did the

0:19:45.920 --> 0:19:49.800
<v Speaker 1>same thing in a different form factor. So while he

0:19:49.880 --> 0:19:52.679
<v Speaker 1>was a little might have been a little bitter about

0:19:52.760 --> 0:19:55.880
<v Speaker 1>not being in on the team when they made this breakthrough,

0:19:56.240 --> 0:20:00.439
<v Speaker 1>he then immediately almost made an improvement to the designed

0:20:00.520 --> 0:20:04.320
<v Speaker 1>to make it more practical. A T and T made

0:20:04.320 --> 0:20:06.960
<v Speaker 1>a decision. It was kind of a political decision on

0:20:07.000 --> 0:20:10.600
<v Speaker 1>the back end, because you had Britain and Bardine, who

0:20:10.600 --> 0:20:14.119
<v Speaker 1>were the two guys who actually invented the transistor. But

0:20:14.160 --> 0:20:17.320
<v Speaker 1>then you had Shockley, who was the administrative lead of

0:20:17.359 --> 0:20:20.920
<v Speaker 1>the team and who had at least had some input,

0:20:21.000 --> 0:20:24.720
<v Speaker 1>although not directly responsible for the invention, and A T.

0:20:24.840 --> 0:20:26.800
<v Speaker 1>Wanted to make sure they didn't step on any toes,

0:20:26.920 --> 0:20:30.120
<v Speaker 1>so they made a decision where they said that any

0:20:30.200 --> 0:20:33.760
<v Speaker 1>photo of the transistor that was to include the development

0:20:33.760 --> 0:20:37.320
<v Speaker 1>team would also have to have Shockley in it, sort

0:20:37.320 --> 0:20:41.159
<v Speaker 1>of as an uh a way of saying his contributions

0:20:41.200 --> 0:20:45.920
<v Speaker 1>were important or instrumental for the development of the transistor. Now,

0:20:45.960 --> 0:20:48.600
<v Speaker 1>this also tended to rub other people the wrong way,

0:20:48.720 --> 0:20:52.199
<v Speaker 1>people who said he didn't have nearly enough involvement to

0:20:52.280 --> 0:20:57.000
<v Speaker 1>justify being in every single photo of this transistor. So

0:20:57.200 --> 0:21:01.040
<v Speaker 1>it created a little bit of drama. And also Shockley

0:21:01.160 --> 0:21:05.040
<v Speaker 1>was reportedly difficult to work with at times. He had

0:21:05.040 --> 0:21:10.879
<v Speaker 1>a very um, forceful and somewhat brusque personality that people

0:21:11.560 --> 0:21:16.680
<v Speaker 1>didn't always enjoy being around. I'm dancing around it a lot,

0:21:16.800 --> 0:21:20.119
<v Speaker 1>but it's largely because I never met Shockley, so I

0:21:20.160 --> 0:21:23.960
<v Speaker 1>can't tell any firsthand information. I'm merely reporting what other

0:21:24.000 --> 0:21:27.840
<v Speaker 1>people have said and even third and fourth hand accounts

0:21:27.840 --> 0:21:29.480
<v Speaker 1>of that sort of stuff. So I like to be

0:21:29.520 --> 0:21:32.440
<v Speaker 1>careful and not put too many words and too many

0:21:32.440 --> 0:21:37.040
<v Speaker 1>people's mouths if I can. Shockley, to his credit, always

0:21:37.040 --> 0:21:40.080
<v Speaker 1>tried to make sure that any stories that were about

0:21:40.160 --> 0:21:43.840
<v Speaker 1>this transistor indicated that Britaine and Bardine had been the

0:21:43.880 --> 0:21:46.639
<v Speaker 1>ones to make the breakthrough so he wasn't trying to

0:21:46.800 --> 0:21:50.359
<v Speaker 1>steal credit, he wasn't claiming it for his own. He

0:21:50.400 --> 0:21:53.320
<v Speaker 1>wanted to make sure that the people responsible were credited

0:21:53.359 --> 0:21:56.960
<v Speaker 1>with their work. But often Shockley would be cited as

0:21:57.000 --> 0:22:01.640
<v Speaker 1>the primary or sometimes sole inventor of the transistor. That

0:22:01.720 --> 0:22:05.280
<v Speaker 1>the narrative sort of became. He had been working on it,

0:22:06.160 --> 0:22:09.840
<v Speaker 1>he was derailed by World War two, came back and

0:22:09.880 --> 0:22:12.320
<v Speaker 1>now it's a thing, and he would point out that's

0:22:12.359 --> 0:22:15.639
<v Speaker 1>an oversimplification of what had happened in many different respects.

0:22:16.520 --> 0:22:19.080
<v Speaker 1>And in nineteen fifty six he was awarded the Nobel

0:22:19.200 --> 0:22:22.719
<v Speaker 1>Prize in Physics for his work on the transistor, along

0:22:22.720 --> 0:22:25.640
<v Speaker 1>with Britain and Bardin. But the fact that he also

0:22:25.680 --> 0:22:28.400
<v Speaker 1>got a Nobel Prize for this when he wasn't directly

0:22:28.440 --> 0:22:32.280
<v Speaker 1>involved with the invention of the first working transistor again

0:22:32.520 --> 0:22:41.120
<v Speaker 1>upset some people. Uh Shockley would end up completely alienating

0:22:41.200 --> 0:22:44.480
<v Speaker 1>himself from Britain and Bardein. Neither of them wanted to

0:22:44.520 --> 0:22:46.679
<v Speaker 1>work with him anymore. They felt felt that it was

0:22:46.720 --> 0:22:51.320
<v Speaker 1>a difficult working relationship. Um Bartein would and Britain would

0:22:51.359 --> 0:22:54.520
<v Speaker 1>actually both refuse to work with Shockley, and in nineteen

0:22:54.560 --> 0:22:59.040
<v Speaker 1>fifty three Shockley himself left Bell Labs, and first he

0:22:59.080 --> 0:23:01.959
<v Speaker 1>went back to cal Tech and he worked there for

0:23:02.000 --> 0:23:04.440
<v Speaker 1>a while, but he was looking for something more permanent,

0:23:05.240 --> 0:23:10.920
<v Speaker 1>and then he encountered a financier named Arnold Beckman, and

0:23:11.000 --> 0:23:15.600
<v Speaker 1>with Beckman's help and some funding, Shockley founded a new

0:23:15.720 --> 0:23:21.920
<v Speaker 1>company in California called the Shockley Semiconductor Company. They picked

0:23:21.920 --> 0:23:26.080
<v Speaker 1>a location near Stanford in northern California. Shockley thought that

0:23:26.080 --> 0:23:30.639
<v Speaker 1>that was an attractive spot, that the the the weather,

0:23:30.720 --> 0:23:34.119
<v Speaker 1>the climate there was really nice. The location was beautiful.

0:23:34.840 --> 0:23:36.760
<v Speaker 1>It was close to Stanford, so it would make it

0:23:36.840 --> 0:23:41.000
<v Speaker 1>easy to recruit students who are already at Stanford directly

0:23:41.040 --> 0:23:44.840
<v Speaker 1>out of school to come work at at Shockley Semiconductor.

0:23:45.400 --> 0:23:48.560
<v Speaker 1>So he thought of this as a y strategy. And

0:23:48.600 --> 0:23:51.320
<v Speaker 1>in fact, Shockley had a reputation for being able to

0:23:51.359 --> 0:23:57.400
<v Speaker 1>recognize brilliant scientists and engineers. Maybe he couldn't manage them

0:23:57.480 --> 0:24:00.440
<v Speaker 1>because of his personality, but he certainly could wrecking eys them,

0:24:00.480 --> 0:24:02.880
<v Speaker 1>and so he was really good at recruiting people who

0:24:02.920 --> 0:24:08.080
<v Speaker 1>would be very very strong performers in the semiconductor industry.

0:24:10.000 --> 0:24:14.240
<v Speaker 1>By the way, Shockley Semiconductor would become the second company

0:24:14.359 --> 0:24:18.400
<v Speaker 1>in Silicon Valley, the This is the early early days

0:24:18.400 --> 0:24:22.639
<v Speaker 1>of Silicon Valley, before you had countless companies there. And

0:24:22.760 --> 0:24:26.920
<v Speaker 1>Shockley Semiconductor was the second such company in Silicon Valley.

0:24:26.960 --> 0:24:30.199
<v Speaker 1>The first one was Hewitt Packard, which was found in

0:24:30.240 --> 0:24:34.239
<v Speaker 1>a Palo Alto garage back in nineteen thirty nine and

0:24:34.280 --> 0:24:38.040
<v Speaker 1>really set the standard for for founding a company in

0:24:38.080 --> 0:24:41.040
<v Speaker 1>Silicon Valley. There were so many companies that were founded

0:24:41.080 --> 0:24:44.600
<v Speaker 1>in garages from that point forward, some of them in

0:24:44.680 --> 0:24:48.240
<v Speaker 1>Silicon Valley, some of them in other places. So Apple Computers,

0:24:48.560 --> 0:24:52.640
<v Speaker 1>for example, founded in a garage in Palo Alto, California.

0:24:52.920 --> 0:24:55.840
<v Speaker 1>Microsoft also founded in a garage, but that time we're

0:24:55.880 --> 0:24:59.640
<v Speaker 1>talking more about Washington, not about California. Still same kind

0:24:59.640 --> 0:25:04.560
<v Speaker 1>of thing. Ing, uh, well, you got YOUWITTT. Packard that

0:25:04.680 --> 0:25:07.320
<v Speaker 1>paved the way back in ninety nine. And then Shockley

0:25:07.320 --> 0:25:10.840
<v Speaker 1>Semiconductor becoming the second company in Silicon Valley. This was

0:25:10.920 --> 0:25:15.520
<v Speaker 1>before it had even developed that name. And Shockley, always

0:25:15.640 --> 0:25:18.800
<v Speaker 1>good at recognizing strong talent, hired on some brilliant people

0:25:18.840 --> 0:25:22.359
<v Speaker 1>to join his team. And two of those people, we're

0:25:22.359 --> 0:25:26.159
<v Speaker 1>Gordon Moore and Robert Noisce who would eventually go on

0:25:26.320 --> 0:25:31.400
<v Speaker 1>to found Intel. But we're not there yet as long

0:25:31.440 --> 0:25:35.119
<v Speaker 1>as I've talked about Shockley Semiconductor, we haven't gotten to

0:25:35.119 --> 0:25:38.640
<v Speaker 1>the point where Noise and More go off to find Intel.

0:25:38.680 --> 0:25:41.600
<v Speaker 1>We actually have some more drama first with Shockley, and

0:25:41.600 --> 0:25:43.720
<v Speaker 1>then we have another company to talk about before we

0:25:43.760 --> 0:25:46.800
<v Speaker 1>even get to Intel. But first let's give some background

0:25:47.000 --> 0:25:50.840
<v Speaker 1>on both More and Noise. Gordon Moore grew up in

0:25:50.880 --> 0:25:53.960
<v Speaker 1>California and was really interested in science as a kid.

0:25:54.200 --> 0:25:57.400
<v Speaker 1>He earned his PhD and Chemistry and physics from cal Tech,

0:25:57.800 --> 0:26:01.040
<v Speaker 1>and he joined the Applied Physics labor tory at Johns

0:26:01.040 --> 0:26:05.080
<v Speaker 1>Hopkins University in Laurel, Maryland. While he was there, his

0:26:05.359 --> 0:26:11.440
<v Speaker 1>chief responsibility was working on solid rocket propellants for the U. S. Navy,

0:26:11.480 --> 0:26:14.240
<v Speaker 1>but he felt that his talents would be better suited

0:26:14.280 --> 0:26:16.680
<v Speaker 1>for the private sector and that that would be more

0:26:16.760 --> 0:26:20.920
<v Speaker 1>challenging and profitable, so he decided to relocate, moved back

0:26:20.920 --> 0:26:26.800
<v Speaker 1>to California, and he joined Shockley Semiconductor. Robert Noyce grew

0:26:26.880 --> 0:26:30.560
<v Speaker 1>up in Iowa and was interested in physics and inventing

0:26:30.760 --> 0:26:34.000
<v Speaker 1>at an early age. He earned degrees in physics at

0:26:34.000 --> 0:26:37.640
<v Speaker 1>Grinnell College and at PhD in solid state physics from

0:26:37.760 --> 0:26:40.680
<v Speaker 1>m I T. He went to work for the phil

0:26:40.720 --> 0:26:44.760
<v Speaker 1>Co Corporation before meeting William Shockley, who recruited him to

0:26:44.960 --> 0:26:50.359
<v Speaker 1>join Chockley Semiconductor. But William Shockley's management style was rough.

0:26:50.960 --> 0:26:55.200
<v Speaker 1>People did not like working for him or with him,

0:26:55.320 --> 0:26:59.800
<v Speaker 1>and several members of his engineering team started to re

0:27:00.040 --> 0:27:04.080
<v Speaker 1>vent William Shockley, and in nineteen fifty seven, just a

0:27:04.200 --> 0:27:07.040
<v Speaker 1>year after most of them had joined the company less

0:27:07.080 --> 0:27:10.760
<v Speaker 1>than a year in some cases, a group of eight engineers,

0:27:11.040 --> 0:27:15.520
<v Speaker 1>including More and Noise, tried to remove Shockley as the

0:27:15.600 --> 0:27:19.760
<v Speaker 1>head of Shockley Semiconductor. This attempt failed. They were not

0:27:19.880 --> 0:27:23.040
<v Speaker 1>able to do that, so instead all eight of them

0:27:23.359 --> 0:27:27.040
<v Speaker 1>quit the company to go and found their own company.

0:27:27.080 --> 0:27:34.200
<v Speaker 1>Shockley was absolutely livid about this. He was incredibly angry,

0:27:34.240 --> 0:27:37.800
<v Speaker 1>and he would thenceforth refer to those eight gentlemen as

0:27:38.160 --> 0:27:44.200
<v Speaker 1>the traitorous eight, because they had betrayed him by leaving

0:27:44.280 --> 0:27:48.879
<v Speaker 1>his company after he had given them all the opportunities. Now,

0:27:49.960 --> 0:27:56.040
<v Speaker 1>William Shockley's legacy is at best complicated. He made notable

0:27:56.119 --> 0:28:00.440
<v Speaker 1>contributions in science and engineering, and without those contra abutitions,

0:28:00.520 --> 0:28:03.119
<v Speaker 1>we would not have the technology we have today. We

0:28:03.119 --> 0:28:05.560
<v Speaker 1>would probably be a few years behind where we are

0:28:05.680 --> 0:28:10.360
<v Speaker 1>right now. But he was also a complicated guy who

0:28:10.400 --> 0:28:15.679
<v Speaker 1>had awful awful ideas and philosophy and ideology. So, for example,

0:28:15.680 --> 0:28:19.040
<v Speaker 1>in the nineteen sixties, Shockley began to espouse his theory

0:28:19.160 --> 0:28:23.359
<v Speaker 1>of dysgenics, which included the racist notion that people of

0:28:23.400 --> 0:28:27.520
<v Speaker 1>African descent were naturally the intellectual inferiors of people of

0:28:27.560 --> 0:28:35.040
<v Speaker 1>European stock. So he garnered a lot of criticism for

0:28:35.080 --> 0:28:39.200
<v Speaker 1>these views, which he was not shy and sharing. Uh,

0:28:39.240 --> 0:28:45.360
<v Speaker 1>And it has in many ways diminished people's opinions of

0:28:45.440 --> 0:28:49.360
<v Speaker 1>shocklely and affected how we even talk about his contributions

0:28:49.360 --> 0:28:55.840
<v Speaker 1>to engineering and science, which were considerable, but his insistence

0:28:56.840 --> 0:29:05.239
<v Speaker 1>that dysgenics was a valid worldview was undeniably terrible. So

0:29:05.280 --> 0:29:07.720
<v Speaker 1>that when I said great and terrible things, this would

0:29:07.720 --> 0:29:13.920
<v Speaker 1>definitely fall into that terrible category. And it also illustrates

0:29:13.960 --> 0:29:17.000
<v Speaker 1>how a lot of people found William Shockley difficult to

0:29:17.080 --> 0:29:21.880
<v Speaker 1>be around. The Traders eight, however, had their own goal,

0:29:22.240 --> 0:29:25.680
<v Speaker 1>which was creating their own company. Now was that company Intel?

0:29:26.640 --> 0:29:29.520
<v Speaker 1>Well you'll find out after we take a quick break

0:29:29.760 --> 0:29:40.360
<v Speaker 1>to thank our sponsor. Okay, so no, the new company

0:29:40.440 --> 0:29:44.240
<v Speaker 1>was not Intel, not yet. The new company that these

0:29:44.320 --> 0:29:48.840
<v Speaker 1>eight men founded was called Fair Child Semiconductor. Now this

0:29:48.920 --> 0:29:53.280
<v Speaker 1>was an extension of an already existing company. That company

0:29:53.400 --> 0:29:57.960
<v Speaker 1>was fair Child Camera and Instrument Corporation. So this company

0:29:58.040 --> 0:30:01.880
<v Speaker 1>that produced camera as another instrument wanted to get into

0:30:01.920 --> 0:30:06.960
<v Speaker 1>the burgeoning semiconductor and transistor business, but they didn't really

0:30:06.960 --> 0:30:09.360
<v Speaker 1>have the wherewithal to do it within the company itself.

0:30:09.560 --> 0:30:14.040
<v Speaker 1>So these eight people come up to the company and say, hey,

0:30:14.160 --> 0:30:19.040
<v Speaker 1>we just left Shockley Semiconductor. We're free to work with you.

0:30:19.360 --> 0:30:23.560
<v Speaker 1>We'd be willing to set up the fair Child Semiconductor company.

0:30:23.680 --> 0:30:27.240
<v Speaker 1>You give us the the capital to start the company,

0:30:27.480 --> 0:30:30.920
<v Speaker 1>will start producing products for fair Child. So it was

0:30:30.960 --> 0:30:35.320
<v Speaker 1>a great a great relationship. Fair Child got an enormous

0:30:35.400 --> 0:30:38.000
<v Speaker 1>jump ahead of the competition because these were some of

0:30:38.040 --> 0:30:42.520
<v Speaker 1>the leading thinkers and transistors and semiconductors of the time.

0:30:43.400 --> 0:30:48.000
<v Speaker 1>So it allowed Fairchild to get a really big head

0:30:48.080 --> 0:30:53.840
<v Speaker 1>start over other competitors. Now this podcast is not the

0:30:53.840 --> 0:30:56.800
<v Speaker 1>fair Child Semiconductor story. I've actually talked about fair Child

0:30:56.840 --> 0:30:59.760
<v Speaker 1>semi Conductor in a previous episode. But Noise and More,

0:30:59.760 --> 0:31:04.240
<v Speaker 1>who I promise are going to co found Intel before

0:31:04.280 --> 0:31:08.240
<v Speaker 1>this episode is over. They were at fair Child Semiconductor

0:31:08.280 --> 0:31:10.640
<v Speaker 1>for eleven years, so it behooves us to learn a

0:31:10.680 --> 0:31:14.440
<v Speaker 1>little bit more about what they accomplished while they were there. Now,

0:31:14.480 --> 0:31:17.760
<v Speaker 1>one of the most important contributions Noise made at fair

0:31:17.840 --> 0:31:22.360
<v Speaker 1>Child was the development of the integrated circuit. These days,

0:31:22.400 --> 0:31:25.040
<v Speaker 1>integrated circuits are common, so it could be a little

0:31:25.120 --> 0:31:27.920
<v Speaker 1>challenging to understand how important this was, how big a

0:31:28.000 --> 0:31:30.920
<v Speaker 1>deal it was at the time. But let's just use

0:31:30.960 --> 0:31:36.720
<v Speaker 1>our imaginations for a little moment now. Before Noise and

0:31:36.880 --> 0:31:40.840
<v Speaker 1>also a Texas Instruments engineer named Jack Kilby who was

0:31:41.160 --> 0:31:46.920
<v Speaker 1>independently working on the same challenge, circuits were made of independent,

0:31:47.200 --> 0:31:51.120
<v Speaker 1>discrete components that were attached to each other with wires.

0:31:51.120 --> 0:31:54.560
<v Speaker 1>So every element of a circuit was its own little,

0:31:54.600 --> 0:31:58.280
<v Speaker 1>separate do hicky that was connected by wires to other

0:31:58.600 --> 0:32:02.160
<v Speaker 1>do hicky's. In this circuit, the doo hikis dependent upon

0:32:02.240 --> 0:32:04.640
<v Speaker 1>whatever you wanted the circuit to do, whether they were

0:32:04.680 --> 0:32:08.280
<v Speaker 1>resistors or they were some form of electrical load like

0:32:08.840 --> 0:32:12.480
<v Speaker 1>a light or something else, switches, that sort of stuff.

0:32:13.520 --> 0:32:16.800
<v Speaker 1>So these were macro circuits right there. Large There are

0:32:17.080 --> 0:32:19.200
<v Speaker 1>things that you could work with with your hands if

0:32:19.200 --> 0:32:22.040
<v Speaker 1>you needed to, and if you were to look at

0:32:22.040 --> 0:32:25.360
<v Speaker 1>early circuitry, each individual component would be its own thing.

0:32:25.840 --> 0:32:30.080
<v Speaker 1>Integrated circuits, as the name suggests, is a circuit in

0:32:30.080 --> 0:32:33.240
<v Speaker 1>which all the components are integrated together on a single

0:32:33.320 --> 0:32:38.640
<v Speaker 1>wafer of semiconductor material. Now, both Noise Over at Fairchild

0:32:38.760 --> 0:32:43.280
<v Speaker 1>and kill be Over at Texas Instruments developed this idea independently,

0:32:43.560 --> 0:32:46.240
<v Speaker 1>and both of them got credit for it. The Noise

0:32:46.320 --> 0:32:49.560
<v Speaker 1>came up with a means of creating the connections between

0:32:49.600 --> 0:32:54.600
<v Speaker 1>components on a circuit using a process called the planar process.

0:32:54.680 --> 0:32:59.440
<v Speaker 1>This involves evaporating lines of conductive material directly onto the

0:32:59.600 --> 0:33:03.920
<v Speaker 1>semi conductor wafer. So this is sort of like designing

0:33:03.960 --> 0:33:06.840
<v Speaker 1>the wires the connect of different pieces together, but you

0:33:06.920 --> 0:33:11.120
<v Speaker 1>do it by evaporating this metallic material so that it

0:33:11.280 --> 0:33:15.200
<v Speaker 1>forms on the subway the semiconductor wafer in a very

0:33:15.240 --> 0:33:19.120
<v Speaker 1>specific pattern that allows the connections between the different components.

0:33:19.600 --> 0:33:23.720
<v Speaker 1>And it was a revolutionary technique at the time. As

0:33:23.760 --> 0:33:28.160
<v Speaker 1>for Gordon Moore, his most famous contribution during his time

0:33:28.160 --> 0:33:31.920
<v Speaker 1>at Fairchild is what we now call Moore's law. Now

0:33:31.960 --> 0:33:35.280
<v Speaker 1>that's not to say it was his most important contribution,

0:33:35.680 --> 0:33:39.560
<v Speaker 1>but it's the one that most folks are aware of. Now.

0:33:39.600 --> 0:33:41.880
<v Speaker 1>This comes from an observation he made in a paper

0:33:41.920 --> 0:33:47.000
<v Speaker 1>that he titled Cramming More Components onto Integrated Circuits, which

0:33:47.080 --> 0:33:50.640
<v Speaker 1>was published in the journal Electronics in nineteen sixty five.

0:33:51.400 --> 0:33:55.880
<v Speaker 1>And it's probably not what you think it is. Moore's

0:33:55.960 --> 0:34:00.200
<v Speaker 1>law tends to be slightly misconstrued from the way that

0:34:00.240 --> 0:34:05.080
<v Speaker 1>Gordon Moore presented it in this paper. The common interpretation

0:34:05.160 --> 0:34:09.120
<v Speaker 1>today is that Moore's law means that every eighteen to

0:34:09.200 --> 0:34:14.200
<v Speaker 1>twenty four months computers double in processing power. So a

0:34:14.200 --> 0:34:17.160
<v Speaker 1>computer from two years ago would be half as powerful

0:34:17.280 --> 0:34:20.080
<v Speaker 1>as the computer you can buy today, and a computer

0:34:20.160 --> 0:34:22.719
<v Speaker 1>two years from now will be twice as powerful as

0:34:22.760 --> 0:34:25.640
<v Speaker 1>the computers you buy today. Computer from four years ago

0:34:25.719 --> 0:34:29.760
<v Speaker 1>would be half as powerful as one from two years ago, etcetera, etcetera, etcetera.

0:34:30.200 --> 0:34:34.280
<v Speaker 1>And so More was making an observation about the linear

0:34:34.360 --> 0:34:39.880
<v Speaker 1>relationship between time and the in this interpretation, processing power

0:34:40.080 --> 0:34:43.520
<v Speaker 1>of computers. But that's not entirely what More was actually

0:34:43.520 --> 0:34:47.520
<v Speaker 1>talking about back in nineteen six. Instead, More was observing

0:34:47.560 --> 0:34:51.799
<v Speaker 1>that as companies developed more advanced methods of designing, producing,

0:34:51.960 --> 0:34:58.520
<v Speaker 1>and mass manufacturing discrete components, namely transistors, onto integrated circuits,

0:34:59.040 --> 0:35:03.080
<v Speaker 1>it followed this linear pathway. So a company would make

0:35:03.120 --> 0:35:06.560
<v Speaker 1>a breakthrough. It would invest in the manufacturing process to

0:35:06.640 --> 0:35:10.520
<v Speaker 1>develop a transistor, or rather smaller transistor, so that you

0:35:10.560 --> 0:35:13.640
<v Speaker 1>could fit more of those transistors on a single semiconductor chip,

0:35:14.480 --> 0:35:17.319
<v Speaker 1>and then they would make money by selling this more

0:35:17.400 --> 0:35:21.640
<v Speaker 1>advanced semiconductor chip with more transistors on it, which would

0:35:21.680 --> 0:35:24.080
<v Speaker 1>give them more money to put back into research and

0:35:24.120 --> 0:35:29.239
<v Speaker 1>development and to make even smaller transistors to make more

0:35:29.280 --> 0:35:34.000
<v Speaker 1>powerful semiconductor chips and then sell those in future circuits. So,

0:35:34.000 --> 0:35:36.080
<v Speaker 1>in other words, More was pointing out that this trend

0:35:36.120 --> 0:35:40.000
<v Speaker 1>was supported by the economics of the semiconductor and integrated

0:35:40.040 --> 0:35:46.200
<v Speaker 1>circuit industries. This wasn't so much a commentary on technological progress,

0:35:46.320 --> 0:35:52.359
<v Speaker 1>but more how the market supported the ability for engineers

0:35:52.400 --> 0:35:56.879
<v Speaker 1>to research and develop and design and produce these more

0:35:56.920 --> 0:36:01.920
<v Speaker 1>powerful circuits. It's a delicate and role difference from the

0:36:01.920 --> 0:36:05.399
<v Speaker 1>way More's law tends to be communicated, but I think

0:36:05.400 --> 0:36:10.719
<v Speaker 1>it's an important distinction. There's profit to be made an innovation.

0:36:12.600 --> 0:36:18.239
<v Speaker 1>So Moreover, this classical approach of cramming more components onto

0:36:18.320 --> 0:36:22.960
<v Speaker 1>an integrated circuit would eventually become inaccurate as well. So

0:36:23.600 --> 0:36:28.600
<v Speaker 1>originally it was Gordon Moore saying here in nineteen sixty five,

0:36:28.920 --> 0:36:32.560
<v Speaker 1>we can fit twice as many transistors on a chip

0:36:32.800 --> 0:36:35.160
<v Speaker 1>as we could back in nineteen sixty three. And the

0:36:35.239 --> 0:36:39.480
<v Speaker 1>reason for that is that we have developed enough technology

0:36:39.880 --> 0:36:44.040
<v Speaker 1>due to the economic viability of these chips, to have

0:36:44.560 --> 0:36:47.880
<v Speaker 1>the size of the transistors and thus double the number

0:36:47.920 --> 0:36:51.960
<v Speaker 1>that can be on a sub semiconductor chip. Same thing

0:36:51.960 --> 0:36:54.680
<v Speaker 1>would hold true that this observation, as long as it

0:36:54.760 --> 0:36:57.919
<v Speaker 1>maintains that linear pathway, means that in two years will

0:36:58.040 --> 0:37:01.839
<v Speaker 1>fit twice as many transistors as to day. Two years more,

0:37:01.880 --> 0:37:04.480
<v Speaker 1>it will be twice as many as that, etcetera, etcetera.

0:37:05.600 --> 0:37:08.680
<v Speaker 1>That's not exactly the truth. Now we don't really see

0:37:08.920 --> 0:37:12.720
<v Speaker 1>the number of discrete components doubling every eighteen to twenty

0:37:12.760 --> 0:37:17.560
<v Speaker 1>four months. Uh. Today we're really talking about components that

0:37:17.560 --> 0:37:21.840
<v Speaker 1>are on the nanoscale. So a nanometer is one billionth

0:37:22.080 --> 0:37:24.279
<v Speaker 1>of a meter. That is a scale that is so

0:37:24.360 --> 0:37:28.360
<v Speaker 1>small you cannot view it with an optical microscope. You

0:37:28.400 --> 0:37:32.240
<v Speaker 1>would need a scanning electron microscope or something along those lines.

0:37:32.480 --> 0:37:35.360
<v Speaker 1>Optical microscopes aren't going to allow you to see things

0:37:35.480 --> 0:37:39.640
<v Speaker 1>on the nano scale. That's how tiny these components are

0:37:39.680 --> 0:37:45.560
<v Speaker 1>in microprocessors today. At that scale, quantum effects come into

0:37:45.560 --> 0:37:52.160
<v Speaker 1>play these weird quantum mechanics effects that mean your structures

0:37:52.239 --> 0:37:55.200
<v Speaker 1>may not behave the way you intended because of things

0:37:55.239 --> 0:37:59.560
<v Speaker 1>like electron tunneling. Electron tunneling is a fancy way of

0:37:59.600 --> 0:38:05.759
<v Speaker 1>saying a electrons be crazy yo. Essentially, electrons have an

0:38:05.840 --> 0:38:08.840
<v Speaker 1>area of potential where they could be at any given

0:38:08.840 --> 0:38:14.520
<v Speaker 1>moment around their respective atoms, or if they're free floating electrons,

0:38:14.560 --> 0:38:18.840
<v Speaker 1>it just means there's a zone within which the electron

0:38:18.960 --> 0:38:23.360
<v Speaker 1>might be at any point. Like it, maybe if you

0:38:23.400 --> 0:38:25.600
<v Speaker 1>were to draw a circle, you could imagine that the

0:38:25.640 --> 0:38:29.320
<v Speaker 1>electron could be anywhere within that circle at any given moment.

0:38:30.640 --> 0:38:35.440
<v Speaker 1>Transistors involve electron gates that are supposed to control the

0:38:35.480 --> 0:38:38.120
<v Speaker 1>flow of electrons. Either they allow them to pass through

0:38:38.239 --> 0:38:40.880
<v Speaker 1>or do not allow them to pass through. If the

0:38:40.920 --> 0:38:44.799
<v Speaker 1>electron gates gets so thin that this zone where an

0:38:44.800 --> 0:38:49.040
<v Speaker 1>electron can appear can sometimes be on the other side

0:38:49.040 --> 0:38:53.120
<v Speaker 1>of a closed gate, it means that sometimes the electron

0:38:53.360 --> 0:38:55.200
<v Speaker 1>is on the other side of the closed gate, even

0:38:55.200 --> 0:38:57.840
<v Speaker 1>though it didn't have to go through the gate itself.

0:38:57.880 --> 0:39:00.879
<v Speaker 1>It's as if the electron has tunneled through the gate.

0:39:01.640 --> 0:39:05.360
<v Speaker 1>This is a non trivial problem when you're talking about

0:39:05.440 --> 0:39:09.600
<v Speaker 1>transistors that have to govern the movement of electrons. Now

0:39:09.640 --> 0:39:12.799
<v Speaker 1>engineers have figured out ways around this using different materials

0:39:12.800 --> 0:39:16.360
<v Speaker 1>and different architectures. But it does mean that we're rapidly

0:39:16.400 --> 0:39:20.759
<v Speaker 1>approaching a point where we can't just make stuff smaller.

0:39:21.360 --> 0:39:25.600
<v Speaker 1>We're getting to a fundamental limit of how small these

0:39:25.640 --> 0:39:29.399
<v Speaker 1>components can be while still running on the basics of

0:39:30.120 --> 0:39:34.000
<v Speaker 1>computer logic and electricity the way we have been running

0:39:34.040 --> 0:39:37.719
<v Speaker 1>them in the past. Uh. However, it does mean that

0:39:37.760 --> 0:39:41.200
<v Speaker 1>we don't really talk about cramming more components onto a chip. Necessarily,

0:39:41.239 --> 0:39:45.120
<v Speaker 1>we talk about what it's output is. Can it put

0:39:45.200 --> 0:39:48.719
<v Speaker 1>out twice as much processing power as the ones that

0:39:48.800 --> 0:39:52.960
<v Speaker 1>came eighteen months or twenty four months ago. That's kind

0:39:52.960 --> 0:39:56.080
<v Speaker 1>of how we frame More's law these days. By the way,

0:39:56.160 --> 0:40:00.400
<v Speaker 1>you might wonder, if Moore's law is true and computers

0:40:00.400 --> 0:40:03.759
<v Speaker 1>are getting twice as fast every couple of years, why

0:40:03.840 --> 0:40:05.520
<v Speaker 1>is it that my computer has never seemed to get

0:40:05.560 --> 0:40:07.719
<v Speaker 1>twice as fast. Well, the problem with that is that

0:40:07.800 --> 0:40:11.759
<v Speaker 1>you have software bloat that often goes along with these

0:40:11.840 --> 0:40:15.200
<v Speaker 1>improvements in hardware. So if your software is demanding more

0:40:15.239 --> 0:40:20.359
<v Speaker 1>and more resources from a computer as it gets more advanced,

0:40:20.600 --> 0:40:23.680
<v Speaker 1>as you know, new types of software come out, then

0:40:23.840 --> 0:40:26.160
<v Speaker 1>all you're really doing is just trying to stay ahead

0:40:26.200 --> 0:40:29.280
<v Speaker 1>of the software bloat with more powerful hardware, the software

0:40:29.280 --> 0:40:32.320
<v Speaker 1>just takes more advantage of the hardware that's there, because

0:40:32.400 --> 0:40:36.160
<v Speaker 1>the software two years from now is gonna require more

0:40:36.200 --> 0:40:40.040
<v Speaker 1>assets than the software from today. So it's just constantly

0:40:40.080 --> 0:40:43.560
<v Speaker 1>treading water. You never really get to a point where

0:40:43.800 --> 0:40:48.200
<v Speaker 1>the computer really feels twice as fast as your old computer, uh,

0:40:48.840 --> 0:40:51.800
<v Speaker 1>unless you're just running legacy software, in which case you

0:40:51.880 --> 0:40:56.720
<v Speaker 1>might say, wow, this is wicked fast, all right. Noise

0:40:56.880 --> 0:41:00.880
<v Speaker 1>and More both did very well at fair Child. Robert

0:41:00.920 --> 0:41:04.359
<v Speaker 1>Noyce became the general manager of fair Child Semiconductor. Gordon

0:41:04.440 --> 0:41:07.479
<v Speaker 1>Moore was the head of research and development. But while

0:41:07.560 --> 0:41:11.279
<v Speaker 1>they and the six others whom Shockley named traders were

0:41:11.280 --> 0:41:14.759
<v Speaker 1>the ones to found the company, they didn't really control

0:41:14.920 --> 0:41:18.120
<v Speaker 1>the company. It still fell under the umbrella of the

0:41:18.200 --> 0:41:22.400
<v Speaker 1>parent company, fair Child Camera and Instrument, which meant that

0:41:22.480 --> 0:41:24.480
<v Speaker 1>Noise and More and all the others still had to

0:41:24.480 --> 0:41:27.080
<v Speaker 1>answer to other people, people who didn't all have the

0:41:27.080 --> 0:41:30.800
<v Speaker 1>same priorities that they did. So one big sticking point

0:41:31.280 --> 0:41:33.960
<v Speaker 1>was that fair Child Camera and Instrument was taking some

0:41:34.080 --> 0:41:38.840
<v Speaker 1>of the profits from fair Child Semiconductor and using them

0:41:38.880 --> 0:41:42.520
<v Speaker 1>in areas outside the semiconductor industry. They were investing them

0:41:42.520 --> 0:41:45.600
<v Speaker 1>in other parts of the company. So to Noise and More,

0:41:45.640 --> 0:41:48.680
<v Speaker 1>it felt like fair Child Camera and Instrument was siphoning

0:41:48.719 --> 0:41:51.439
<v Speaker 1>away some of the profits they were generating in order

0:41:51.440 --> 0:41:54.480
<v Speaker 1>to support other parts of their business, and they didn't

0:41:54.480 --> 0:41:58.320
<v Speaker 1>like that. So they felt the money should have remained

0:41:58.560 --> 0:42:01.720
<v Speaker 1>with the semiconductor industry, maybe invested back into the company

0:42:01.800 --> 0:42:05.640
<v Speaker 1>or into the employees. And they became increasingly disenchanted with

0:42:05.719 --> 0:42:10.120
<v Speaker 1>the way things were running. So in July nine, Noise

0:42:10.280 --> 0:42:14.360
<v Speaker 1>and More both tendered their resignation from fair Child semi Conductor.

0:42:15.239 --> 0:42:18.760
<v Speaker 1>So they had already left Shockley semi Conductor to found

0:42:18.800 --> 0:42:21.160
<v Speaker 1>fair Child semi Conductor. Now they were going to leave

0:42:21.160 --> 0:42:25.520
<v Speaker 1>fair Child semi Conductor to found a third company. They

0:42:25.600 --> 0:42:29.319
<v Speaker 1>each put forth a quarter of a million dollars as

0:42:29.360 --> 0:42:32.239
<v Speaker 1>an initial investment in this new company, so together they

0:42:32.239 --> 0:42:34.719
<v Speaker 1>had a half million, and they raised another two and

0:42:34.719 --> 0:42:38.920
<v Speaker 1>a half million from various investors who were primarily organized

0:42:38.920 --> 0:42:42.680
<v Speaker 1>by a businessman named Arthur Rock. And by the way,

0:42:42.719 --> 0:42:46.440
<v Speaker 1>here's another fun trivia note. Arthur Rock, the businessman who

0:42:47.000 --> 0:42:49.560
<v Speaker 1>arranged to get that two and a half million. He's

0:42:49.600 --> 0:42:52.480
<v Speaker 1>the guy who came up with the term venture capitalist.

0:42:52.600 --> 0:42:55.120
<v Speaker 1>So if you've ever heard venture capitalist, that was a

0:42:55.280 --> 0:43:01.160
<v Speaker 1>term coined by Arthur Rock, the guy who helped fund Intel. Now,

0:43:01.200 --> 0:43:03.960
<v Speaker 1>according to the founders, they presented Arthur Rock with a

0:43:04.000 --> 0:43:07.200
<v Speaker 1>business proposal that was a grand total of one pages

0:43:07.320 --> 0:43:11.120
<v Speaker 1>long and only was one page, very simple business proposal

0:43:11.200 --> 0:43:13.560
<v Speaker 1>that essentially said they wanted to form a company that

0:43:13.600 --> 0:43:19.040
<v Speaker 1>would build integrated circuits. So Rock got on board. He

0:43:19.400 --> 0:43:22.000
<v Speaker 1>managed to secure the funding from various investors. He put

0:43:22.040 --> 0:43:26.080
<v Speaker 1>in ten thousand of his own dollars into the investment pool,

0:43:26.560 --> 0:43:29.200
<v Speaker 1>and he would eventually become the first chairman of the

0:43:29.239 --> 0:43:31.759
<v Speaker 1>new company. But why are they going to call it?

0:43:32.200 --> 0:43:35.160
<v Speaker 1>So first they started thinking about potential names. They said, well,

0:43:35.160 --> 0:43:38.839
<v Speaker 1>maybe we can name it after ourselves, But then they

0:43:38.880 --> 0:43:42.120
<v Speaker 1>realized that they called it the More Noise Company, it

0:43:42.120 --> 0:43:46.879
<v Speaker 1>would sound like more Noise and somehow being the head

0:43:46.880 --> 0:43:53.200
<v Speaker 1>of the More Noise Company didn't seem terribly attractive. They

0:43:53.239 --> 0:43:57.759
<v Speaker 1>then went with the company name in M Electronics, the

0:43:57.800 --> 0:44:01.520
<v Speaker 1>initials of their last names of Noise and More. But

0:44:01.960 --> 0:44:05.560
<v Speaker 1>this didn't last very long either, and within a month

0:44:05.680 --> 0:44:09.600
<v Speaker 1>or so they were changing their minds. They decided to

0:44:09.640 --> 0:44:12.279
<v Speaker 1>go with a totally different name, and they renamed their

0:44:12.320 --> 0:44:17.560
<v Speaker 1>new company Intel, which was inspired by the phrase integrated Electronics.

0:44:18.040 --> 0:44:21.320
<v Speaker 1>So they took INT from integrated and l from Electronics

0:44:21.440 --> 0:44:25.480
<v Speaker 1>get Intel. They couldn't just adopt the name right away, however,

0:44:25.560 --> 0:44:29.239
<v Speaker 1>because there was another business called Intel Co. That had

0:44:29.280 --> 0:44:32.160
<v Speaker 1>the rights to it. So first Noise and More purchased

0:44:32.160 --> 0:44:34.920
<v Speaker 1>the rights to the name, and then they used Intel

0:44:35.040 --> 0:44:39.080
<v Speaker 1>and Intel was officially born. They located the company in

0:44:39.239 --> 0:44:44.759
<v Speaker 1>Santa Clara, California, and shortly after establishing Intel, they recruited

0:44:44.800 --> 0:44:48.919
<v Speaker 1>a guy named Andrew Grove from Fairchild Semiconductor. The three

0:44:48.960 --> 0:44:51.319
<v Speaker 1>of them would each serve as the chairman and chief

0:44:51.360 --> 0:44:54.400
<v Speaker 1>executive officer of Intel at some point over the next

0:44:54.440 --> 0:44:58.359
<v Speaker 1>three decades. A bit later, in nineteen sixty nine, they

0:44:58.400 --> 0:45:02.080
<v Speaker 1>released the company logo. The original logo had Intel and

0:45:02.200 --> 0:45:05.400
<v Speaker 1>all lower case letters. You can still see that today,

0:45:05.440 --> 0:45:09.000
<v Speaker 1>But the original logo had the E and Intel at

0:45:09.040 --> 0:45:11.680
<v Speaker 1>a lower level than the rest of the letters, so

0:45:11.719 --> 0:45:14.560
<v Speaker 1>it was dropped down. The dropped down E logo is

0:45:14.600 --> 0:45:18.799
<v Speaker 1>what they called it now. At first, Intel's concentration was

0:45:18.840 --> 0:45:22.560
<v Speaker 1>the design and production of memory chips, which included a

0:45:22.640 --> 0:45:26.399
<v Speaker 1>bipolar memory chip called the three one oh one schlot Key.

0:45:26.920 --> 0:45:29.640
<v Speaker 1>Bipolar in this case doesn't have to do with any

0:45:29.680 --> 0:45:34.759
<v Speaker 1>sort of personality issue, it's just to talk about the

0:45:34.800 --> 0:45:38.040
<v Speaker 1>specific type of memory. This helped the company gets some

0:45:38.120 --> 0:45:41.640
<v Speaker 1>attention while it developed more innovative products, and then the

0:45:41.680 --> 0:45:45.920
<v Speaker 1>company made waves by launching the first metal oxide semiconductor

0:45:46.000 --> 0:45:50.040
<v Speaker 1>for static random access memory, also known as the eleven

0:45:50.040 --> 0:45:52.520
<v Speaker 1>oh one. Now, there are lots of different types of

0:45:52.520 --> 0:45:58.000
<v Speaker 1>computer memory. There's rob memory, or read only memory RAM,

0:45:58.160 --> 0:46:02.120
<v Speaker 1>or random access memory, CAN memory, and tons more. As

0:46:02.160 --> 0:46:05.160
<v Speaker 1>the name suggests, the purpose of memory is to store

0:46:05.320 --> 0:46:08.359
<v Speaker 1>some sort of information so that the computer might refer

0:46:08.480 --> 0:46:12.520
<v Speaker 1>to it for any given application. Storing information and computer

0:46:12.560 --> 0:46:16.600
<v Speaker 1>memory simplifies things, speeds it up considerably because the computer

0:46:16.680 --> 0:46:19.759
<v Speaker 1>doesn't have to reference some other form of storage each

0:46:19.800 --> 0:46:23.920
<v Speaker 1>time it needs to reference a particular piece of information. Instead,

0:46:24.200 --> 0:46:26.480
<v Speaker 1>it stores that information and computer memory so it can

0:46:26.560 --> 0:46:29.040
<v Speaker 1>reference it very quickly. And I've talked a lot about

0:46:29.080 --> 0:46:31.120
<v Speaker 1>computer memory on this show, and I'm sure most of

0:46:31.120 --> 0:46:33.600
<v Speaker 1>you now have at least some understanding of it. But

0:46:33.640 --> 0:46:36.080
<v Speaker 1>I always like to take these opportunities to at least

0:46:36.120 --> 0:46:39.399
<v Speaker 1>take a kind of big picture view of the technology.

0:46:39.960 --> 0:46:44.480
<v Speaker 1>So think of RAM computer memory like a big spreadsheet table,

0:46:44.560 --> 0:46:47.680
<v Speaker 1>because essentially that's what it is. The columns of the

0:46:47.719 --> 0:46:51.200
<v Speaker 1>spreadsheet we would call bitlines, and the rows in the

0:46:51.239 --> 0:46:55.040
<v Speaker 1>spreadsheet are called word lines. The intersection of bit lines

0:46:55.080 --> 0:46:58.080
<v Speaker 1>and word lines is the address of a memory cell,

0:46:58.680 --> 0:47:03.080
<v Speaker 1>and computers can access information stored in RAM using this

0:47:03.239 --> 0:47:06.479
<v Speaker 1>general address. Right they know the address of the memory cell,

0:47:06.760 --> 0:47:09.920
<v Speaker 1>they can pull the information out of that cell right away.

0:47:10.520 --> 0:47:13.959
<v Speaker 1>This is really useful and it's pretty fast. This differentiates

0:47:14.040 --> 0:47:18.520
<v Speaker 1>RAM from sequential memory. Sequential memory, as it sounds, is

0:47:18.600 --> 0:47:23.480
<v Speaker 1>stored in sequence. This would be like a tape, videotape

0:47:23.560 --> 0:47:27.480
<v Speaker 1>or a cassette tape where you have to actually go

0:47:27.640 --> 0:47:31.440
<v Speaker 1>at the beginning of the piece of data and move down,

0:47:31.920 --> 0:47:33.960
<v Speaker 1>go all the way through the data to find the

0:47:34.120 --> 0:47:37.560
<v Speaker 1>section that you need in order to retrieve it. It's

0:47:37.640 --> 0:47:41.200
<v Speaker 1>much more time consuming. If you want an analogy, imagine

0:47:41.200 --> 0:47:44.640
<v Speaker 1>that you have an enormous book with tons of information

0:47:44.680 --> 0:47:47.360
<v Speaker 1>written down in it, but it has no table contents,

0:47:47.640 --> 0:47:50.440
<v Speaker 1>There are no page numbers, there are no chapter headings,

0:47:50.800 --> 0:47:52.959
<v Speaker 1>So if you wanted to find something specific in the book,

0:47:53.000 --> 0:47:55.560
<v Speaker 1>you would have to essentially start at the beginning and

0:47:55.600 --> 0:47:58.319
<v Speaker 1>start skimming through line by line to try and find

0:47:58.320 --> 0:48:01.920
<v Speaker 1>the information you wanted. But if you had a similar

0:48:02.000 --> 0:48:06.000
<v Speaker 1>book that was organized in chapters with page numbers, section numbers,

0:48:06.040 --> 0:48:08.160
<v Speaker 1>that sort of thing, and it has an amazing index,

0:48:08.600 --> 0:48:10.359
<v Speaker 1>you would be able to find what you were looking

0:48:10.400 --> 0:48:14.319
<v Speaker 1>for pretty quickly. That's what RAM does with computers. And

0:48:14.360 --> 0:48:16.160
<v Speaker 1>I might do a full episode to talk about the

0:48:16.200 --> 0:48:19.279
<v Speaker 1>actual science and technology behind memory, but that would take

0:48:19.400 --> 0:48:21.319
<v Speaker 1>up so much time. Now. For now, we're just gonna

0:48:21.360 --> 0:48:24.359
<v Speaker 1>skip over it and just say Intel's first products were

0:48:24.400 --> 0:48:28.440
<v Speaker 1>memory chips. But were they successful or find out about that.

0:48:29.080 --> 0:48:31.759
<v Speaker 1>We'll have to come back after a quick break to

0:48:31.880 --> 0:48:43.440
<v Speaker 1>thank our sponsor. Kind of successful. The eleven O one

0:48:43.480 --> 0:48:46.800
<v Speaker 1>met with limited success, and that was largely because the approach,

0:48:46.800 --> 0:48:49.960
<v Speaker 1>while it was innovative, was a little limited. In that

0:48:50.239 --> 0:48:55.279
<v Speaker 1>first memory chip. In Intel launched the eleven O three,

0:48:55.400 --> 0:48:59.160
<v Speaker 1>which was a dynamic RAM chip or d RAM chip,

0:48:59.560 --> 0:49:02.600
<v Speaker 1>with one kill a byte of memory, though some records

0:49:02.600 --> 0:49:04.640
<v Speaker 1>say it was one kill a bit, which is actually

0:49:04.640 --> 0:49:08.720
<v Speaker 1>a pretty big difference. Remember a bite is eight bits

0:49:09.120 --> 0:49:12.200
<v Speaker 1>of information, and a bit is your basic unit of information.

0:49:12.280 --> 0:49:16.040
<v Speaker 1>It's either a zero or a one. This was a

0:49:16.120 --> 0:49:20.000
<v Speaker 1>much more useful chip than the somewhat limited eleven oh one,

0:49:20.080 --> 0:49:22.600
<v Speaker 1>and it became a successful product for the company. One

0:49:22.600 --> 0:49:25.920
<v Speaker 1>of their first big customers for the eleven oh three

0:49:26.280 --> 0:49:32.480
<v Speaker 1>was Honeywell Incorporated. Honeywell is another huge name in computers.

0:49:32.840 --> 0:49:35.080
<v Speaker 1>I'll need to do a full episode about Honeywell in

0:49:35.120 --> 0:49:40.160
<v Speaker 1>the future. The company shows Intel's chips to replace the

0:49:40.280 --> 0:49:43.600
<v Speaker 1>core memory technology in Honeywell computer. So this was an

0:49:43.760 --> 0:49:48.560
<v Speaker 1>enormous win for Intel. That same year, Intel purchased twenty

0:49:48.600 --> 0:49:51.920
<v Speaker 1>six acres of land on the corner of Coffin Road

0:49:52.440 --> 0:49:55.880
<v Speaker 1>and Central Expressway in Santa Clara. It had been a

0:49:56.000 --> 0:49:59.480
<v Speaker 1>peach orchard. So just think if they had gone with

0:49:59.560 --> 0:50:02.600
<v Speaker 1>that land and first, if Intel had bought that land

0:50:02.640 --> 0:50:06.320
<v Speaker 1>as its first action, maybe they would have not named

0:50:06.320 --> 0:50:09.160
<v Speaker 1>themselves Intel. Maybe they would have given themselves some sort

0:50:09.200 --> 0:50:13.320
<v Speaker 1>of peach name because they bought a peach orchard. Maybe

0:50:13.360 --> 0:50:15.920
<v Speaker 1>we would have ended up with peach chips and apple

0:50:16.000 --> 0:50:20.160
<v Speaker 1>products further down the line, which would make a delicious

0:50:20.200 --> 0:50:29.720
<v Speaker 1>cobbler Cobbler. The company's innovations in memory would eventually become

0:50:29.960 --> 0:50:33.000
<v Speaker 1>the industry standard, which, as you can imagine, was great

0:50:33.080 --> 0:50:36.799
<v Speaker 1>news for Intel. But the innovation didn't stop there. Now

0:50:36.800 --> 0:50:40.359
<v Speaker 1>we're going to end this episode in nineteen seventy one,

0:50:40.640 --> 0:50:42.840
<v Speaker 1>which was just a couple of years after the company

0:50:42.920 --> 0:50:45.840
<v Speaker 1>was founded. But that's because there were some really big

0:50:45.960 --> 0:50:50.920
<v Speaker 1>things that happened in nineteen seventy one. First, Intel introduced

0:50:50.960 --> 0:50:55.920
<v Speaker 1>a new technology that year called eraseable programmable read only

0:50:56.000 --> 0:51:00.120
<v Speaker 1>memory or e PROM or sometimes just i RAM memory.

0:51:00.760 --> 0:51:04.040
<v Speaker 1>This chip had an incredibly useful feature. It could retain

0:51:04.320 --> 0:51:08.719
<v Speaker 1>information in computer memory even after you switched off the

0:51:08.719 --> 0:51:13.160
<v Speaker 1>computer's power. So typically a power cycle will wipe out

0:51:13.200 --> 0:51:17.440
<v Speaker 1>computer memory because once you remove power, nothing is going

0:51:17.480 --> 0:51:20.960
<v Speaker 1>to the memory. It cannot maintain its state and it

0:51:21.000 --> 0:51:24.120
<v Speaker 1>returns to a base state, So anything that was stored

0:51:24.160 --> 0:51:27.600
<v Speaker 1>in memory is essentially wiped out. The information that you

0:51:27.640 --> 0:51:31.440
<v Speaker 1>have stored on the hard drive or whatever other media

0:51:31.480 --> 0:51:34.279
<v Speaker 1>you're using is still there, but the stuff that was

0:51:34.280 --> 0:51:38.440
<v Speaker 1>in this volatile computer memory is gone. E PROM was

0:51:38.480 --> 0:51:42.520
<v Speaker 1>a type of non volatile computer memory, meaning that when

0:51:42.560 --> 0:51:45.680
<v Speaker 1>you had power cut off, it would maintain the state

0:51:46.000 --> 0:51:49.560
<v Speaker 1>that it was in before power was removed, thus it

0:51:49.560 --> 0:51:55.279
<v Speaker 1>would remain within computer memory. This particular Intel product was

0:51:55.320 --> 0:51:58.920
<v Speaker 1>called the seventeen O two Because Intel had a habit

0:51:58.920 --> 0:52:02.080
<v Speaker 1>of numbering products, which made it a little less sexy

0:52:02.200 --> 0:52:06.120
<v Speaker 1>than other company products, but at least you can figure

0:52:06.120 --> 0:52:08.880
<v Speaker 1>out what each thing did based upon the numbering system

0:52:08.920 --> 0:52:12.880
<v Speaker 1>that Intel used. Also, in nineteen seventy one, the company

0:52:12.880 --> 0:52:15.680
<v Speaker 1>would make another big step. They would go public. They

0:52:15.680 --> 0:52:19.200
<v Speaker 1>would hold an initial public offering. So from its founding

0:52:19.200 --> 0:52:21.719
<v Speaker 1>in nineteen sixty eight through to nineteen seventy one, it

0:52:21.760 --> 0:52:24.839
<v Speaker 1>was a private company. It was supporting itself mainly through

0:52:24.920 --> 0:52:29.040
<v Speaker 1>sales and through more rounds of venture capital. But eventually

0:52:29.120 --> 0:52:32.680
<v Speaker 1>they were making enough of a success to go public.

0:52:32.800 --> 0:52:35.719
<v Speaker 1>It was only three years in so they held an

0:52:35.719 --> 0:52:38.680
<v Speaker 1>I p O and stocks were priced at twenty three

0:52:38.719 --> 0:52:42.480
<v Speaker 1>dollars and fifty cents per share, and the company raised

0:52:42.480 --> 0:52:46.279
<v Speaker 1>six and six point eight million dollars. Now, compared to

0:52:46.320 --> 0:52:50.319
<v Speaker 1>some modern day electronics companies and tech companies, six point

0:52:50.400 --> 0:52:54.200
<v Speaker 1>eight million dollars seems laughable, right you think of Intel,

0:52:54.239 --> 0:52:57.640
<v Speaker 1>It's this enormous company and it got start with an

0:52:57.680 --> 0:53:00.680
<v Speaker 1>I p O that only raised six point eight million.

0:53:01.640 --> 0:53:03.919
<v Speaker 1>When you see i p o s today for other

0:53:04.000 --> 0:53:07.840
<v Speaker 1>companies in the dozens and dozens or hundreds of millions

0:53:07.840 --> 0:53:10.799
<v Speaker 1>of dollars for evaluation, it's crazy to think about it.

0:53:10.880 --> 0:53:15.279
<v Speaker 1>But then also remember this was nine So for one thing,

0:53:15.280 --> 0:53:18.319
<v Speaker 1>we got to adjust for inflation, Well we don't. I

0:53:18.360 --> 0:53:22.800
<v Speaker 1>already did it. The adjustment for inflation would be around

0:53:22.840 --> 0:53:26.680
<v Speaker 1>forty one million dollars in today's money, so still modest

0:53:26.840 --> 0:53:29.719
<v Speaker 1>compared to some tech companies today, but it was an

0:53:29.800 --> 0:53:33.080
<v Speaker 1>enormous sum back then. Keep in mind this is before

0:53:33.120 --> 0:53:36.600
<v Speaker 1>the personal computer industry. Computers at this point are still

0:53:36.680 --> 0:53:41.920
<v Speaker 1>monstrously large things that research institutions and some big companies have,

0:53:42.200 --> 0:53:49.200
<v Speaker 1>and that's it. So it was still a pretty enormous story.

0:53:50.000 --> 0:53:53.160
<v Speaker 1>I wouldn't turn down forty one million dollars, by the way,

0:53:53.239 --> 0:53:56.720
<v Speaker 1>So if anyone wants to make a investment of forty

0:53:56.719 --> 0:54:01.520
<v Speaker 1>one million dollars in Jonathan Strickland, I'm more than willing

0:54:01.640 --> 0:54:07.040
<v Speaker 1>to enter negotiations. So just throwing that out there. Intel

0:54:07.080 --> 0:54:10.120
<v Speaker 1>employees also in nineteen seventy one got to move into

0:54:10.200 --> 0:54:13.440
<v Speaker 1>their new headquarters building, which had been constructed on that

0:54:13.560 --> 0:54:18.560
<v Speaker 1>land they had purchased earlier. They owned this building until

0:54:19.160 --> 0:54:21.560
<v Speaker 1>owned the land. They owned the building itself. They were

0:54:21.600 --> 0:54:25.720
<v Speaker 1>no longer renting out space from other companies. So nineteen

0:54:25.719 --> 0:54:28.160
<v Speaker 1>seventy one had a move in day, which is kind

0:54:28.160 --> 0:54:31.360
<v Speaker 1>of cool. And also in nineteen seventy one, that was

0:54:31.360 --> 0:54:34.080
<v Speaker 1>when Intel got into the business most people know them for,

0:54:34.560 --> 0:54:40.360
<v Speaker 1>which would be micro processors. Now, that project would actually

0:54:40.440 --> 0:54:42.520
<v Speaker 1>date all the way back to the founding of Intel

0:54:42.600 --> 0:54:46.959
<v Speaker 1>or shortly thereafter. They started the project in nineteen sixty nine.

0:54:47.000 --> 0:54:49.320
<v Speaker 1>It wasn't until nineteen seventy one that they had something

0:54:49.360 --> 0:54:52.040
<v Speaker 1>to show for it. But in nineteen sixty nine, another

0:54:52.080 --> 0:54:56.280
<v Speaker 1>company called the Nipon Calculating Machine Corporation came to Intel

0:54:56.800 --> 0:55:00.600
<v Speaker 1>and said, we want you to design twelve custom chips

0:55:00.760 --> 0:55:04.360
<v Speaker 1>for our printing calculator, which would be the boozy Com

0:55:04.400 --> 0:55:08.040
<v Speaker 1>one for one PF or Busy Calm, probably because it's

0:55:08.080 --> 0:55:12.000
<v Speaker 1>spelled like business, but it's busy Calm, not boozy com.

0:55:12.040 --> 0:55:14.719
<v Speaker 1>But I'm sure after using a printing calculator that was

0:55:14.760 --> 0:55:17.200
<v Speaker 1>one of the earliest ones ever made, you'd probably wanted

0:55:17.280 --> 0:55:23.440
<v Speaker 1>to be a boozy Com I'm guessing anyway, until engineers

0:55:23.800 --> 0:55:26.480
<v Speaker 1>took a look at this proposal and they countered, they said,

0:55:26.680 --> 0:55:30.240
<v Speaker 1>we could actually make what you want, but with four

0:55:30.320 --> 0:55:35.240
<v Speaker 1>custom chips instead of twelve. One of those custom chips

0:55:35.400 --> 0:55:39.319
<v Speaker 1>would be memory. One of them would be read only memory.

0:55:39.360 --> 0:55:41.759
<v Speaker 1>That sort of thing, but one of them would be

0:55:41.840 --> 0:55:45.440
<v Speaker 1>a programmable chip that could be used for all sorts

0:55:45.440 --> 0:55:49.160
<v Speaker 1>of different stuff, and Nipon agreed to this. Well, this

0:55:49.239 --> 0:55:52.120
<v Speaker 1>was an innovative idea to have this programmable chip as

0:55:52.120 --> 0:55:56.080
<v Speaker 1>opposed to something that was made from the beginning for

0:55:56.200 --> 0:56:00.439
<v Speaker 1>a very specific application. To have a programmable chip would

0:56:00.520 --> 0:56:05.960
<v Speaker 1>open up incredible opportunities further down the line, probably beyond

0:56:06.120 --> 0:56:12.160
<v Speaker 1>what Intel had anticipated. So through this project, Intel was

0:56:12.200 --> 0:56:15.279
<v Speaker 1>able to create the four zero zero four chip. This

0:56:15.440 --> 0:56:19.759
<v Speaker 1>was a central processing unit or CPU. Intel purchased the

0:56:19.840 --> 0:56:23.719
<v Speaker 1>rights from Nipon to market this chip separately from those

0:56:23.760 --> 0:56:27.560
<v Speaker 1>calculating machines, because if they hadn't, then Nipon would have

0:56:27.560 --> 0:56:31.680
<v Speaker 1>had the exclusivity to that technology for their calculating machines,

0:56:32.040 --> 0:56:36.120
<v Speaker 1>and then Intel would have missed out on a tremendous opportunity.

0:56:36.160 --> 0:56:38.680
<v Speaker 1>So they purchased the rights and the four zero zero

0:56:38.680 --> 0:56:44.080
<v Speaker 1>four processor was born. Electronic News heralded this event with

0:56:44.160 --> 0:56:49.600
<v Speaker 1>a headline that read, announcing a new era in integrated electronics,

0:56:49.600 --> 0:56:53.720
<v Speaker 1>and that's exactly what it was. The ability to create

0:56:53.760 --> 0:57:01.520
<v Speaker 1>a programmable central processing unit was a non trivial contribution

0:57:01.880 --> 0:57:05.080
<v Speaker 1>to the advancement of electronics. And computer science,