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Silicon Valley

Technology hub in California, United States

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Silicon Valley; specifically, the North First Street area of San Jose, looking southbound down Interstate 880 towards downtown San Jose. Photographed by user Coolcaesar on 1 June 2014.
Coolcaesar · CC BY-SA 3.0

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The cities of Sunnyvale, Mountain View, Palo Alto and Menlo Park are frequently cited as the birthplace of Silicon Valley. Other major Silicon Valley cities are San Jose, Santa Clara, Redwood City and Cupertino. As of 2015, the San Jose Metropolitan Area has the third-highest GDP per capita in the world (after Zurich and Oslo), according to the Brookings Institution. As of June 2021, it also had the highest percentage of homes valued at $1 million or more in the United States, at 47%.

Silicon Valley is home to many of the world's leading high-tech corporations, including the headquarters of more than 30 businesses in the Fortune 1000, and thousands of startup companies. The Bay Area also accounts for one-third of all of the venture capital investment in the United States, which has helped it to become a leading hub and startup ecosystem for high-tech innovation, although as of 2023 the tech ecosystem had become more geographically dispersed. It was in Silicon Valley that the silicon-based integrated circuit, the microprocessor, and the microcomputer, among other technologies, were developed. As of 2021, Santa Clara and San Mateo Counties employed about a half million information technology workers.

As more high-tech companies were established across the Santa Clara Valley, and then north towards the Bay Area's two other major cities, San Francisco and Oakland, the term "Silicon Valley" came to have two definitions: a narrower geographic one, referring to Santa Clara County and southeastern San Mateo County, and a metonymical definition referring to high-tech businesses in the entire Bay Area. The name also became a global synonym for leading high-tech research and enterprises, and thus inspired similarly named locations, as well as research parks and technology centers with comparable structures all around the world. Many headquarters of tech companies in Silicon Valley have become hotspots for tourism.

Etymology

"Silicon" refers to the chemical element used in silicon-based transistors and integrated circuit chips, which is the focus of a large number of computer hardware and software innovators and manufacturers in the region.

The popularization of the name is often credited to Don Hoefler, the first journalist to use the term in a news story. His article "Silicon Valley U.S.A." was published in the January 11, 1971, issue of the weekly trade newspaper Electronic News. In preparation for this report, during a lunch meeting with marketing people who were visiting the area, he heard them use the term. Earlier uses outside journalism exist; for example, a May 1970 advertisement in the Peninsula Times Tribune described a Palo Alto company that "helps production people in Silicon Valley." It is possible that the nickname was coined by Washington, D.C.–based Department of Defense people who did business with California chip makers. However, the term did not gain widespread use until the early 1980s, at the time of the introduction of the IBM PC and numerous related hardware and software products to the consumer market.

The urbanized area is built upon an alluvial plain within a longitudinal valley formed by roughly parallel earthquake faults. The area between the faults subsided into a graben or dropped valley. Hoefler defined Silicon Valley as the urbanized parts of "the San Francisco Peninsula and Santa Clara Valley". Before the expansive growth of the tech industry, the region had been the largest fruit-producing and packing region in the world up through the 1960s, with 39 fruit canneries. The nickname it had been known as during that period was "the Valley of Heart's Delight".

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