A piece of the action: Lessons from silicon Valley's first semiconductor enterprise

The behavior and assumptions that launched the semiconductor industry in Silicon Valley proved to be quite different from the behavior and assumptions involved in growing and sustaining that industry. This article will show significant differences between key aspects of the Valley's first semiconductor enterprise and what would come later there. Two primary, and related, differences stand out between the Valley's first semiconductor enterprise and later generations: 1. The business model. Shockley wished to create a smaller version of Bell Telephone Laboratories (Bell Labs). 2. The role of Stanford University. Relations with Stanford University were central to the inception, location, and planning of Shockley Semiconductor. Although SSL was a flawed vessel, and had a brief life as a viable competitive force to be reckoned with, its role in history is secure: determining a location for the Traitorous Eight, their subsequent spin-offs, and for Silicon Valley's signature industry.

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