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Apple II, Bob Noyce, collective bargaining, computer age, George Gilder, informal economy, John Markoff, laissez-faire capitalism, low skilled workers, means of production, Menlo Park, Murray Gell-Mann, open economy, Richard Feynman, Richard Feynman, Ronald Reagan, Sand Hill Road, Silicon Valley, Silicon Valley startup, Steve Jobs, Steve Wozniak, union organizing, War on Poverty, women in the workforce, Yom Kippur War
Noyce, “Candles to Computers,” 229. 35. My front teeth almost fell out: Bob Noyce to Home, 13 Aug. 1945, reprinted in D. S. Noyce, “Candles to Computers,” 231. 36. Another insignificant student: letter fragment, 16 July , reprinted in D. S. Noyce, “Candles to Computeres,” 230. We expect great things from you: Samuel Stevens to Robert Noyce, 7 May 1945, courtesy Grinnell College. 37. Interest in Smythe report: Bob Noyce to Family, 22 Jan. , ASB. 38. He never pushed himself forward: Scott Crom, interview by Evan Ramstad, April 1995, courtesy Evan Ramstad. 39. Adrenaline and gasoline: Ralph Noyce to Bob Noyce, 29 Oct. 1945, DSN. 40. Noyce’s academic work: various letters, especially Bob Noyce to Home, undated but probably spring 1946, DSN. You won’t know: Ralph Noyce to Bob Noyce, 29 Oct. 1945, DSN. 41. I’m just sorry I’ve got such brothers: Bob Noyce to Home, Wednesday night [no date, but probably 1947], ASB. 42. $5 in the bank, $4 in my pocket: Bob Noyce to Folks, 23 Sept. , DSN. $19 to buy shoes, not war bond: Harriet Noyce, “I Remember,” 36.
Wriggled them just right: Reid, The Chip, 50. A gross overstatement: Grant Gale, untitled recollections of Bob Noyce, n.d., Gale Papers, GCA. MIT tuition scholarship: Philip M. Morse to Bob Noyce, 25 March 1949, MITP. Best returns on the time spent studying: Bob Noyce to Family Everywhere, 4 May 1949. 314 Notes to Pages 28–36 Chapter 2: Rapid Robert 1. Noyce’s scholarship: Noyce’s graduate school record, MITP. Cost of a year at MIT: MIT Bulletin, June 1949, Catalogue Issue, 1949–1950. Construction site injury: Ralph Noyce to Mother, 9 Aug. 1949, ASB. Noyce shocked by country club extravagance: Bob Noyce to Folks, 7 March , ASB. 2. Determination to secure a research fellowship: Bob Noyce to Dear Family, 20 April . 3. MIT as a giant basement: Penny Noyce, interview by author. 4. Remote and austere: Bud Wheelon , interview by author, 8 Oct. 2002. 5.
The Fairchild attorneys would have been hard pressed to explain why they were in any position to charge another firm with questionable practices on this front. Moreover, as Fairchild counsel Roger Borovoy, who thought they might have had a case, explains with a sigh, neither he nor anyone else at Fairchild relished the prospect of suing Noyce: “We just said, ‘The hell with it.’ There was no way Sherman Fairchild, who was still active, would sue Bob Noyce. . . . All the up Sherman ever had was from Bob Noyce. Bob Noyce made Fairchild. So why screw around with this [talk of a suit] any more?”11 Grove, Vadasz, and the MOS team in the Intel lab found the notion that they might be significantly benefiting from Fairchild’s silicon gate research laughable. Recall the difference between lab work and production. Fairchild’s work had never left the lab. There were no transistors rolling off the lines with silicon gates at Fairchild and certainly no integrated circuits.
Microchip: An Idea, Its Genesis, and the Revolution It Created by Jeffrey Zygmont
Albert Einstein, Bob Noyce, business intelligence, computer age, El Camino Real, invisible hand, popular electronics, side project, Silicon Valley, Silicon Valley startup, William Shockley: the traitorous eight
For more information, please contact the Special Markets Department at the Perseus Books Group, 11 Cambridge Center, Cambridge, MA 02142, or call (800) 255-1514 or (617) 252-5298, or e-mail firstname.lastname@example.org. Text design by Jeff Williams Set in 11-point New Aster by the Perseus Books Group First printing, January 2003 123456789 10—06 05 04 03 Bob Noyce said that "optimism is an essential ingredient for innovation. How else can the individual welcome change over security, adventure over staying in safe places?" To Bob Noyce, and every other optimist. CONTENTS Acknowledgments ix Prologue: Changing Minds xiii = PART I LAYING THE FOUNDATION = 3 22 40 49 58 76 94 104 120 one two three four five six seven eight nine ten eleven twelve thirteen fourteen fifteen Thinking Small The Wild West First Contact Team Choices Chipping Away Calculated Gains Adding Contenders Common Ground Great Debates : PART II BUILDING THE Changing Guards Computers for Cooks Call Forwarding Common Computing New Language Building Muscles Epilogue: Mutual Aid Notes Index 133 140 154 170 183 200 213 221 235 VII ACKNOWLEDGMENTS SOON AFTER I STARTED RESEARCHING this book, I recognized that the story could not be accurately told unless it showed how free enterprise encouraged so much exuberant invention.
Intel was still so small that Ted Hoff's immediate supervisor was Bob Noyce, the chief executive. But that arrangement wasn't for austerity alone. From lessons learned at Fairchild, Intel's bosses believed a technology company had to remain lean so that it would be flexible and fast-acting enough to make inevitable changes. Managers had to be involved, not aloof. They had to keep the troops energized and engaged. Sclerosis at any level might cause a company to miss an unanticipated change, and thereby miss a big chance. Corporate flexibility also meant that workers were allowed to operate with a wide range of freedom. People had assigned responsibilities, but they could also wander into other inquiries, as long as they wandered productively. Therefore Bob Noyce didn't flinch when Ted Hoff came from out of the blue in July 1969 to worry over Busicom's mixed up circuit sketches.
Faggin was the circuit designer hired by Intel early in 1970 to manifest Ted Hoff's original, 4004 microprocessor. Shima was one of visiting Busicom engineers who had arrived in June 1969 to oversee development of the calculator chips that Hoff had turned into the 4004. Shima had stayed, joining Intel and directing design of the 8080 chip in 1974. Bob Noyce would later call him the world's most influential microprocessor designer. That's very high praise. But in the large scheme of events, Shima and Faggin and even Bob Noyce himself were only a few of the many strivers who advanced their art by responding to the enticements of corporate ownership. Likewise, Wang Labs wasn't the only organization to permute computing toward popular acceptance. With micro- 198 MICROCHIP processors, any person could make a computer if he or she had enough patience and determination, plus some basic skills in circuitry, an electronics parts catalog, and a soldering stick.
Becoming Steve Jobs: The Evolution of a Reckless Upstart Into a Visionary Leader by Brent Schlender, Rick Tetzeli
Albert Einstein, Apple II, Apple's 1984 Super Bowl advert, Bill Gates: Altair 8800, Bob Noyce, Byte Shop, computer age, corporate governance, El Camino Real, Isaac Newton, John Markoff, Jony Ive, Marc Andreessen, market design, McMansion, Menlo Park, Paul Terrell, popular electronics, QWERTY keyboard, Ronald Reagan, Sand Hill Road, side project, Silicon Valley, Silicon Valley startup, skunkworks, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, Tim Cook: Apple, Wall-E, Watson beat the top human players on Jeopardy!, Whole Earth Catalog
While Steve looked to his elders at Apple for guidance, he also sought it out elsewhere. He didn’t yet have the skills to build a great company, but he admired those who had pulled it off, and he would go to great lengths to meet them and learn from them. “None of these people were really in it for the money,” he told me. “Dave Packard, for example, left all his money to his foundation. He may have died the richest guy in the cemetery, but he wasn’t in it for the money. Bob Noyce [cofounder of Intel] is another. I’m old enough to have been able to get to know these guys. I met Andy Grove [CEO of Intel from 1987 to 1998] when I was twenty-one. I called him up and told him I had heard he was really good at operations and asked if I could take him out to lunch. I did that with Jerry Sanders [founder of Advanced Micro Devices] and with Charlie Sporck [founder of National Semiconductor] and others.
But then our visions of the future began to diverge and eventually we had a falling out. When we did, our Board of Directors sided with him. So at thirty I was out. And very publicly out. What had been the focus of my entire adult life was gone, and it was devastating. I really didn’t know what to do for a few months. I felt that I had let the previous generation of entrepreneurs down—that I had dropped the baton as it was being passed to me. I met with David Packard and Bob Noyce and tried to apologize for screwing up so badly. I was a very public failure, and I even thought about running away from the Valley. But something slowly began to dawn on me—I still loved what I did. The turn of events at Apple had not changed that one bit. I had been rejected, but I was still in love. And so I decided to start over. I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me.
23andMe, Andy Kessler, bank run, barriers to entry, Berlin Wall, Bob Noyce, British Empire, business process, California gold rush, carbon footprint, Cass Sunstein, cloud computing, collateralized debt obligation, collective bargaining, commoditize, computer age, creative destruction, disintermediation, Douglas Engelbart, Eugene Fama: efficient market hypothesis, fiat currency, Firefox, Fractional reserve banking, George Gilder, Gordon Gekko, greed is good, income inequality, invisible hand, James Watt: steam engine, Jeff Bezos, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, libertarian paternalism, low skilled workers, Mark Zuckerberg, McMansion, Netflix Prize, packet switching, personalized medicine, pets.com, prediction markets, pre–internet, profit motive, race to the bottom, Richard Thaler, risk tolerance, risk-adjusted returns, Silicon Valley, six sigma, Skype, social graph, Steve Jobs, The Wealth of Nations by Adam Smith, transcontinental railway, transfer pricing, wealth creators, Yogi Berra
I’ve met Bill Gates many times, first after Microsoft went public. Gates was pitching Wall Street about upgrading to Windows from DOS (without much luck). Eventually, Wall Street discovered spreadsheets, which lowered their costs and made it vastly easier to do things like take two companies or two financial instruments and merge them into something financeable. I met Gordon Moore and Andy Grove and Bob Noyce, the founders of Intel, just as they almost lost out to cheap Japanese memory makers—before turning the massive company on a dime to sell processors (at high margins) to the IBMs and Compaqs and then Dells of the world, driving faster and faster computers so better and better graphics could make computers easier to use for business and making all of us more productive—well, except for those of us who love video games.
Albert Einstein, Andy Kessler, automated trading system, bank run, Big bang: deregulation of the City of London, Bob Noyce, Bretton Woods, British Empire, buttonwood tree, Claude Shannon: information theory, Corn Laws, Douglas Engelbart, Edward Lloyd's coffeehouse, fiat currency, fixed income, floating exchange rates, Fractional reserve banking, full employment, Grace Hopper, invention of the steam engine, invention of the telephone, invisible hand, Isaac Newton, Jacquard loom, Jacquard loom, James Hargreaves, James Watt: steam engine, John von Neumann, joint-stock company, joint-stock limited liability company, Joseph-Marie Jacquard, Leonard Kleinrock, Marc Andreessen, Maui Hawaii, Menlo Park, Metcalfe's law, Metcalfe’s law, packet switching, price mechanism, probability theory / Blaise Pascal / Pierre de Fermat, profit motive, railway mania, RAND corporation, Robert Metcalfe, Silicon Valley, Small Order Execution System, South Sea Bubble, spice trade, spinning jenny, Steve Jobs, supply-chain management, supply-chain management software, trade route, transatlantic slave trade, transatlantic slave trade, tulip mania, Turing machine, Turing test, William Shockley: the traitorous eight
So he started with this bulk N-type, opened a bunch of holes in it and diffused in impurities to create P-type regions. Done with that, he opened a bunch more holes in the middle of the P-type and diffused in impurities to create N-type regions. When finished, he had NPN devices, as many as he could fit. I think Hoerni started with eight devices. But Hoerni did no better than Kilby. He still needed wires to connect the devices. In early 1959, his colleague, Bob Noyce, came up with the solution. Noyce grew an insulator, Silicon Dioxide, which is glass, over the top of the entire circuit. Then again using a mask and photoresist, he cut holes in the glass where he needed to connect to the N, the P and the N regions. Noyce then deposited molten aluminum over the top of the glass, which ran into the holes to make a connection. One more mask and photoresist step removed unwanted aluminum so you were automatically left with flat “wires” connecting the transistors (vs.
Affordable Care Act / Obamacare, Amazon Web Services, asset allocation, autonomous vehicles, bank run, bitcoin, Bob Noyce, Brian Krebs, buy low sell high, Capital in the Twenty-First Century by Thomas Piketty, combinatorial explosion, computer vision, corporate governance, crowdsourcing, en.wikipedia.org, Erik Brynjolfsson, estate planning, Flash crash, Gini coefficient, Goldman Sachs: Vampire Squid, haute couture, hiring and firing, income inequality, index card, industrial robot, information asymmetry, invention of agriculture, Jaron Lanier, Jeff Bezos, job automation, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Loebner Prize, Mark Zuckerberg, mortgage debt, natural language processing, Own Your Own Home, pattern recognition, Satoshi Nakamoto, school choice, Schrödinger's Cat, Second Machine Age, self-driving car, sentiment analysis, Silicon Valley, Silicon Valley startup, Skype, software as a service, The Chicago School, The Future of Employment, Turing test, Watson beat the top human players on Jeopardy!, winner-take-all economy, women in the workforce, working poor, Works Progress Administration
As an experienced entrepreneur, I can assure you this argument is completely ridiculous. Mark Zuckerberg, founder of Facebook, would have worked just as hard for a tiny fraction of the rewards he reaped. The founders of Fairchild Semiconductor widely regarded as the seminal Silicon Valley startup—were thrilled to strike it rich when the parent company bought them out for the princely sum of $250,000 each. In the words of Bob Noyce, “The money doesn’t seem real. It’s just a way of keeping score” (http://www.stanford.edu/class/e140/e140a/content/noyce.html, originally published by Tom Wolfe in Esquire, December 1983). 16. Matt Taibbi, “The Great American Bubble Machine,” Rolling Stone, April 5, 2010, http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405. 17. Works Progress Administration, in 1939 renamed the Work Projects Administration. 18.
Wall Street Meat by Andy Kessler
accounting loophole / creative accounting, Andy Kessler, automated trading system, banking crisis, Bob Noyce, George Gilder, index fund, Jeff Bezos, market bubble, Menlo Park, pets.com, Robert Metcalfe, rolodex, Sand Hill Road, Silicon Valley, Small Order Execution System, Steve Jobs, technology bubble, Y2K
Although I wanted to ask Monsieur Gassee about product issues, such as what chips they used, he stood in a corner, shrugging his shoulders, doing his best Inspector Clouseau imitation, repeating “I dieu nut kneeaauuww.” Sculley’s “no place for Steve Jobs” line was on the front page of every paper the next morning. Bob and I went to see several other companies, as well as to an Intel analyst meeting. I met Intel’s three founders, Gordon Moore, Andy Grove and Bob Noyce. I also met a cast of characters who would follow me around like a bad dream for the next decade. They were the other semiconductor analysts around the Street, my competitors: The number one analyst, Alan Rieper at Cowen, Tom Kurlak at Merrill Lynch, and Jim Barlage at Smith Barney. “These are the enemy,” Bob explained to me, “these are the Institutional Investor All-American analysts. Destroy at all costs.”
Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages by Carlota Pérez
agricultural Revolution, Big bang: deregulation of the City of London, Bob Noyce, Bretton Woods, capital controls, commoditize, Corn Laws, creative destruction, David Ricardo: comparative advantage, deindustrialization, distributed generation, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, Hyman Minsky, informal economy, joint-stock company, Joseph Schumpeter, knowledge economy, late capitalism, market fundamentalism, new economy, nuclear winter, offshore financial centre, post-industrial society, profit motive, railway mania, Robert Shiller, Robert Shiller, Sand Hill Road, Silicon Valley, Simon Kuznets, South Sea Bubble, Thomas Kuhn: the structure of scientific revolutions, Thorstein Veblen, trade route, tulip mania, Upton Sinclair, Washington Consensus
This, apart from being an efficient way of transmitting a thought model, seems particularly suited to the type of explanation proposed, where a recurrent historical sequence has unique manifestations each time around. chapter title PART ONE Technological Revolutions as Successive Great Surges of Development 1 2 Technological Revolutions and Financial Capital The Turbulent Ending of the Twentieth Century 3 1. The Turbulent Ending of the Twentieth Century On a day like any other in November 1971, a small event in Santa Clara California was about to change the history of the world. Bob Noyce and Gordon Moore launched Intel’s first microprocessor, the precursor of the computer on a chip. It was the big-bang of a new universe, that of all-pervasive computing and digital telecommunications. Chips were powerful, they were cheap and they opened innumerable technological and business possibilities. At that time not many people had heard of venture capital or ‘angels’. Though many common citizens in the USA had stocks and bonds, few followed the daily changes in the stock market.
The Rise of the Network Society by Manuel Castells
Apple II, Asian financial crisis, barriers to entry, Big bang: deregulation of the City of London, Bob Noyce, borderless world, British Empire, capital controls, complexity theory, computer age, computerized trading, creative destruction, Credit Default Swap, declining real wages, deindustrialization, delayed gratification, dematerialisation, deskilling, disintermediation, double helix, Douglas Engelbart, Douglas Engelbart, edge city, experimental subject, financial deregulation, financial independence, floating exchange rates, future of work, global village, Gunnar Myrdal, Hacker Ethic, hiring and firing, Howard Rheingold, illegal immigration, income inequality, Induced demand, industrial robot, informal economy, information retrieval, intermodal, invention of the steam engine, invention of the telephone, inventory management, James Watt: steam engine, job automation, job-hopping, John Markoff, knowledge economy, knowledge worker, labor-force participation, labour market flexibility, labour mobility, laissez-faire capitalism, Leonard Kleinrock, low skilled workers, manufacturing employment, Marc Andreessen, Marshall McLuhan, means of production, megacity, Menlo Park, moral panic, new economy, New Urbanism, offshore financial centre, oil shock, open economy, packet switching, Pearl River Delta, peer-to-peer, planetary scale, popular capitalism, popular electronics, post-industrial society, postindustrial economy, prediction markets, Productivity paradox, profit maximization, purchasing power parity, RAND corporation, Robert Gordon, Robert Metcalfe, Shoshana Zuboff, Silicon Valley, Silicon Valley startup, social software, South China Sea, South of Market, San Francisco, special economic zone, spinning jenny, statistical model, Steve Jobs, Steve Wozniak, Ted Nelson, the built environment, the medium is the message, the new new thing, The Wealth of Nations by Adam Smith, Thomas Kuhn: the structure of scientific revolutions, total factor productivity, trade liberalization, transaction costs, urban renewal, urban sprawl, zero-sum game
The shift to silicon, literally building the new revolution on sand, was first accomplished by Texas Instruments (in Dallas) in 1954 (a move facilitated by the hiring in 1953 of Gordon Teal, another leading scientist from Bell Labs). The invention of the planar process in 1959 by Fairchild Semiconductors (in Silicon Valley) opened up the possibility of the integration of miniaturized components with precision manufacturing. Yet the decisive step in micro-electronics had taken place in 1957: the integrated circuit (IC) was co-invented by Jack Kilby, a Texas Instrument engineer (who patented it), and Bob Noyce, one of the founders of Fairchild. But it was Noyce who first manufactured ICs by using the planar process. It triggered a technological explosion: in only three years, between 1959 and 1962, prices of semiconductors fell by 85 percent, and in the next ten years production increased by 20 times, 50 percent of which went to military uses.44 As a point of historical comparison, it took 70 years (1780–1850) for the price of cotton cloth to drop by 85 percent in Britain during the industrial revolution.45 Then, the movement accelerated during the 1960s: as manufacturing technology improved and better chip design was helped by computers using faster and more powerful micro-electronic devices, the average price of an integrated circuit fell from $50 in 1962 to $1 in 1971.
When he was turned down he took a job in Silicon Valley, with a subsidiary of Beckman Instruments, mainly because his mother lived in Palo Alto. With the support of Beckman Instruments he decided to create there his own company, Shockley Transistors, in 1956. He recruited eight brilliant young engineers, mainly from Bell Labs, attracted by the possibility of working with Shockley; one of them, although not precisely from Bell Labs, was Bob Noyce. They were soon disappointed. While learning the fundamentals of cutting-edge micro-electronics from Shockley, they were turned off by his authoritarianism and stubbornness which led the firm into dead-ends. In particular, they wanted, against his decision, to work on silicon as the most promising route to the larger integration of transistors. Thus, after only one year they left Shockley (whose firm collapsed) and created (with the help of Fairchild Cameras) Fairchild Semiconductors, where the invention of the planar process and of the integrated circuit took place in the next two years.
Running Money by Andy Kessler
Andy Kessler, Apple II, bioinformatics, Bob Noyce, British Empire, business intelligence, buy low sell high, call centre, Corn Laws, Douglas Engelbart, family office, full employment, George Gilder, happiness index / gross national happiness, interest rate swap, invisible hand, James Hargreaves, James Watt: steam engine, joint-stock company, joint-stock limited liability company, knowledge worker, Leonard Kleinrock, Long Term Capital Management, mail merge, Marc Andreessen, margin call, market bubble, Maui Hawaii, Menlo Park, Metcalfe’s law, Network effects, packet switching, pattern recognition, pets.com, railway mania, risk tolerance, Robert Metcalfe, Sand Hill Road, Silicon Valley, South China Sea, spinning jenny, Steve Jobs, Steve Wozniak, Toyota Production System, zero-sum game
So Hoerni created a mask, like a photo negative, with a bunch of openings where he wanted to diffuse in impurities, and then ﬂipped on a light. Wherever the photoresist remained after the chemical bath, the impurities would not diffuse underneath. When ﬁnished, he had his integrated transistors, as many as he could ﬁt. I think Hoerni started with eight devices. But Hoerni did no better than Kilby; he still needed wires to connect the devices. In early 1959, his colleague, Bob Noyce, came up with the solution. Noyce blew in some oxygen and grew an insulator, silicon dioxide, literally glass, over the top of the entire circuit. Then, again using a mask and photoresist, he cut holes in the glass where he needed to connect to the transistor nodes. Noyce then deposited molten aluminum over the top of the glass, which ran into the holes to make a connection, so you were left with ﬂat wires connecting the transistors.
The Snowball: Warren Buffett and the Business of Life by Alice Schroeder
affirmative action, Albert Einstein, anti-communist, Ayatollah Khomeini, barriers to entry, Bob Noyce, Bonfire of the Vanities, Brownian motion, capital asset pricing model, card file, centralized clearinghouse, collateralized debt obligation, computerized trading, corporate governance, corporate raider, Credit Default Swap, credit default swaps / collateralized debt obligations, desegregation, Donald Trump, Eugene Fama: efficient market hypothesis, global village, Golden Gate Park, Haight Ashbury, haute cuisine, Honoré de Balzac, If something cannot go on forever, it will stop - Herbert Stein's Law, In Cold Blood by Truman Capote, index fund, indoor plumbing, intangible asset, interest rate swap, invisible hand, Isaac Newton, Jeff Bezos, John Meriwether, joint-stock company, joint-stock limited liability company, Long Term Capital Management, Louis Bachelier, margin call, market bubble, Marshall McLuhan, medical malpractice, merger arbitrage, Mikhail Gorbachev, money market fund, moral hazard, NetJets, new economy, New Journalism, North Sea oil, paper trading, passive investing, Paul Samuelson, pets.com, Plutocrats, plutocrats, Ponzi scheme, Ralph Nader, random walk, Ronald Reagan, Scientific racism, shareholder value, short selling, side project, Silicon Valley, Steve Ballmer, Steve Jobs, supply-chain management, telemarketer, The Predators' Ball, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, transcontinental railway, Upton Sinclair, War on Poverty, Works Progress Administration, Y2K, yellow journalism, zero-coupon bond
He wished the departing partners Godspeed with what might be perceived as the subtlest trace of irony: “This makes good sense for them, since most of them have the ability and motivation to surpass our objectives and I am relieved from pushing for results that I probably can’t attain under present conditions.”15 “Financial genius is a rising market,” as Kenneth Galbraith would later say.16 Now Buffett had more time to pursue the personal interests he had spoken about, and less pressure—at least in theory. After King’s speech, Rosenfield easily recruited Buffett to become a Grinnell trustee. Given Buffett’s dislike of committees and meetings, this signified how much he had been touched by the convocation—as well as how close he had grown to Rosenfield. Naturally, he went straight onto the finance committee, where he found the trustees to be a group of like-minded men. Bob Noyce, who ran a company called Fairchild Semiconductor, which made electronic circuits—something about which Buffett knew little and had even less interest—was chairman. Noyce, a former Grinnell graduate who had once been expelled from school for stealing a pig to roast at a luau—a serious offense in a pig-farming state—had the aura of a man who knew what he was about.17 Yet “he was really a regular guy.
Though proud of having husbanded, tended, and compounded his partnership, with minimal risk, from seven investors and $105,000 to more than three hundred people and $105 million, Buffett had become an elder of the market, seemingly eclipsed by young barnstormers who could flash a couple of years’ worth of showy numbers and joy-ride new investors into giving them $500 million nearly overnight. He seemed especially—and comfortably—antiquated when it came to all the new technology companies that were forming. At Grinnell College, he showed up for a meeting to find his fellow trustee Bob Noyce itching to leave Fairchild Semiconductor. Noyce, Gordon Moore (its research director), and its assistant director of research and development, Andy Grove, had decided to start a nameless new company in Mountain View, California, based on a vague plan to extend the technology of circuits to “higher levels of integration.”23 Joe Rosenfield and the college endowment fund each said they would put in $100,000, joining dozens who were helping to raise $2.5 million for the new company—which was soon to be named Intel, for Integrated Electronics.
BusinessWeek declared “The Death of Equities,” as if no one would ever buy stocks again. A mood of deep pessimism settled on the country. Investors piled into gold, diamonds, platinum, art, real estate, rare coins, mining stocks, feedlot cattle, and oil; “cash is trash” was the watchword of the day. High school girls wore necklaces made of Krugerrand coins. A brash new trustee at Grinnell, Steve Jobs, protégé of the esteemed Bob Noyce, tried to talk the investment committee into selling all the stocks and buying gold.36 An engineer in his mid-twenties, Jobs was obviously a very smart guy, but the investment committee demurred, and Grinnell did not buy gold. In Forbes, Buffett wrote the opposite: It was time for investors to buy stocks. “The future is never clear,” he wrote; “you pay a very high price in the stock market for a cheery consensus.
air freight, Apple II, Bill Gates: Altair 8800, Bob Noyce, card file, Chance favours the prepared mind, cuban missile crisis, dumpster diving, Hush-A-Phone, index card, Jason Scott: textfiles.com, John Markoff, Menlo Park, popular electronics, Richard Feynman, Richard Feynman, Saturday Night Live, Silicon Valley, Steve Jobs, Steve Wozniak, Steven Levy, the new new thing, the scientific method, urban renewal, wikimedia commons
Its founders, Gordon Moore and Robert Noyce, had both worked at Shockley Semiconductor, the company started by one of the three Bell Labs scientists who had invented the transistor. In 1970 an even smaller company called Computer Terminal Corporation approached Intel about having it manufacture a new chip that CTC had designed. The interesting thing about the new chip was that CTC wanted it to hold an entire computer on a single piece of silicon; in other words, it would be a computer on a chip, something that had never been done before. Bob Noyce allegedly responded that his company could do it, but it would be a dumb business move for Intel, which was in the business of selling chips. “If you have a computer chip, you can only sell one chip per computer,” he said, “while with memory you can sell hundreds of chips per computer.” Still, money talked; CTC and Intel signed a $50,000 development contract. The project did not go smoothly. Intel was unable to deliver on time and CTC decided it would rather build its own computer out of separate chips than wait any longer for Intel.
Gamers at Work: Stories Behind the Games People Play by Morgan Ramsay, Peter Molyneux
Any sufficiently advanced technology is indistinguishable from magic, augmented reality, Bob Noyce, collective bargaining, game design, index card, Mark Zuckerberg, oil shock, pirate software, RAND corporation, risk tolerance, Silicon Valley, Skype, Steve Jobs, Von Neumann architecture
You should always save today’s cash for tomorrow’s cash. Ramsay: How successful was Pong? Bushnell: We did about 35,000 units. They were each getting about $1,000 a piece, so we made about $35 million on it. Ramsay: In terms of staff, did you recruit any advisors? Did you know anyone who could provide you insight into the business side? Bushnell: I had a good relationship with a guy named Bob Noyce, who was one of the founders of Intel. I really looked up to him, and would often give him a call when I had a thorny problem. Jerry Sanders from AMD was another guy that I would tap from time to time. Those were probably the two major mentors who I would say I had in the Valley. I also tried over and over again to hire a president. And I hired a couple of guys from Hewlett-Packard. I hired my brother-in-law, who was a chief executive officer.
Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations by Thomas L. Friedman
3D printing, additive manufacturing, affirmative action, Airbnb, AltaVista, Amazon Web Services, autonomous vehicles, Ayatollah Khomeini, barriers to entry, Berlin Wall, Bernie Sanders, bitcoin, blockchain, Bob Noyce, business process, call centre, centre right, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, corporate social responsibility, creative destruction, crowdsourcing, David Brooks, demand response, demographic dividend, demographic transition, Deng Xiaoping, Donald Trump, Erik Brynjolfsson, failed state, Fall of the Berlin Wall, Ferguson, Missouri, first square of the chessboard / second half of the chessboard, Flash crash, game design, gig economy, global supply chain, illegal immigration, immigration reform, income inequality, indoor plumbing, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of the steam engine, inventory management, Irwin Jacobs: Qualcomm, Jeff Bezos, job automation, John Markoff, John von Neumann, Khan Academy, Kickstarter, knowledge economy, knowledge worker, land tenure, linear programming, Live Aid, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, mass immigration, Maui Hawaii, Menlo Park, Mikhail Gorbachev, mutually assured destruction, pattern recognition, planetary scale, pull request, Ralph Waldo Emerson, ransomware, Ray Kurzweil, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, South China Sea, Steve Jobs, supercomputer in your pocket, TaskRabbit, Thomas L Friedman, transaction costs, Transnistria, urban decay, urban planning, Watson beat the top human players on Jeopardy!, WikiLeaks, women in the workforce, Y2K, Yogi Berra, zero-sum game
Irwin: The Cell Phone Guy It was wonderful for consumers for all these networking breakthroughs to occur, but someone had to pack them into a phone you could carry in your pocket to get the full frontal revolution—and no individual was more responsible for this mobile phone revolution than Irwin Jacobs. In the pantheon of the great innovators who launched the Internet age—Bill Gates, Paul Allen, Steve Jobs, Gordon Moore, Bob Noyce, Michael Dell, Jeff Bezos, Marc Andreessen, Andy Grove, Vint Cerf, Bob Kahn, Larry Page, Sergey Brin, and Mark Zuckerberg—save a few lines for Irwin Jacobs, and add Qualcomm to the list of important companies you’ve barely heard of. Qualcomm is to mobile phones what Intel and Microsoft together were to desktops and laptops—the primary inventor, designer, and manufacturer of the microchips and software that run handheld smartphones and tablets.
The Golden Passport: Harvard Business School, the Limits of Capitalism, and the Moral Failure of the MBA Elite by Duff McDonald
activist fund / activist shareholder / activist investor, Affordable Care Act / Obamacare, Albert Einstein, barriers to entry, Bayesian statistics, Bernie Madoff, Bob Noyce, Bonfire of the Vanities, business process, butterfly effect, capital asset pricing model, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collateralized debt obligation, collective bargaining, commoditize, corporate governance, corporate raider, corporate social responsibility, creative destruction, deskilling, discounted cash flows, disintermediation, Donald Trump, family office, financial innovation, Frederick Winslow Taylor, full employment, George Gilder, glass ceiling, Gordon Gekko, hiring and firing, income inequality, invisible hand, Jeff Bezos, job-hopping, John von Neumann, Joseph Schumpeter, Kenneth Arrow, London Whale, Long Term Capital Management, market fundamentalism, Menlo Park, new economy, obamacare, oil shock, pattern recognition, performance metric, Peter Thiel, Plutocrats, plutocrats, profit maximization, profit motive, pushing on a string, Ralph Nader, Ralph Waldo Emerson, RAND corporation, random walk, rent-seeking, Ronald Coase, Ronald Reagan, Sand Hill Road, Saturday Night Live, shareholder value, Silicon Valley, Skype, Steve Jobs, survivorship bias, The Nature of the Firm, the scientific method, Thorstein Veblen, union organizing, urban renewal, Vilfredo Pareto, War on Poverty, William Shockley: the traitorous eight, women in the workforce, Y Combinator
That model has been mimicked by almost every venture capital firm that followed it, most of whom would love to mimic its performance as well: Funded with just $5 million, by the time the firm was dissolved just seven years later, it had generated 54 percent annual returns, generating some $90 million in capital gains for its investors.1 One of their investments was Silicon Valley’s first-ever unicorn: Scientific Data Systems, which sold to Xerox for $1 billion in 1965. But Rock was just getting started. In 1968, he funded two of the Fairchild Eight once again, kicking in $300,000 (along with Venrock’s Peter Crisp, below) when Bob Noyce and Gordon Moore bolted Fairchild to found Intel. A subsequent call from former Intel employee Mike Markkula led Rock to invest in Apple Computer. Interestingly, the HBS-bred Rock never found a true connection with the iconoclastic Steve Jobs, and supported the hiring of Pepsi-Cola president John Sculley to replace Jobs as CEO of Apple in 1983. Sculley’s tenure was marked by both highs (for example, the introduction of the PowerBook) and lows (for example, the ouster of Jobs, the commitment to the PowerPC chip), but Apple didn’t truly soar until its visionary cofounder returned.