7. All the conventional wisdom: Gordon Moore, interview by author.
8. Serve in many of the same applications: Noyce notebook #8, entry dated 12 Jan. 1959. Patent for this device is Robert N. Noyce, “Semiconductor Scanning Device,” U.S. Patent 2,959,681, filed 18 June 1959, patented 8 Nov. 1960. He also patented the switching device as Robert N. Noyce, “Semiconductor Switching Device,” U.S. Patent #2,971,139, filed 16 June 1959, patented 7 Feb. 1961.
9. Problems with aluminum contacts: Gordon Moore notebook #6, entry dated 5 April 1958. Noyce’s suggestions: Pulling-away ideas—Noyce notebook #8, entry dated 10 March 1958. Nickel plating: Noyce notebook #8, entry dated 25 Feb. 1958.
10. Pure aluminum works: Gordon Moore notebook #6, entry dated 2 May 1958. Aluminum contact patent: Gordon E. Moore and Robert N. Noyce, “Method for Fabricating Transistors,” U.S. Patent 3,108,359, filed 30 June 1959, granted 29 Oct. 1963.
11. Refer to IBM specifications: Noyce lab notebook #8, 7; Moore lab notebook #6, 27. The only thing that’s technologically exciting: Noyce quoted in Woolf, “Genesis of the Integrated Circuit,” 53.
12. Important as the wheel: John Bardeen, quoted in “Passages,” Time, 18 June 1990, 103.
13. Failure within first two minutes: Siekman, “In Electronics, the Big Stakes Ride on Tiny Chips,” 122.
14. Military efforts: For more on the “Tinkertoy,” “Micromodule,” and “Molecular Electronics” projects, see Braun and MacDonald, Revolution in Miniature, 88–98; Reid, The Chip, 19–20; Wolff, “The Genesis of the Integrated Circuit,” 49. The discussion of the tyranny of numbers in this book relies heavily on these sources, particularly Reid. At least 20 companies: Herbert S. Kleiman “The Integrated Circuit: A Case Study of Product Innovation in the Electronics Industry,” (PhD diss., New York University, 1966): 114.
15. Building up of an oxide layer: Jean Hoerni, lab notebook #3, 3.
16. Quotes and descriptions of tap testing: Moore notebook #6, entry dated 3 July 1959. Attended a conference: Lecuyer, “Fairchild Semiconductor,” 175.
17. Hoerni’s patent disclosures: Hoerni, “Method of Protecting Exposed p-n Junctions at the Surface of Silicon Transistors by Oxide Masking Techniques,” 14 Jan. 1959; “Selective Control of Electron and Hole Lifetimes in Semiconductor Devices,” 20 Jan. 1959, courtesy Jay Last.
18. Noyce’s integrated circuit notebook entry: Noyce notebook #8: 70–74.
19. Noyce was imagining: Noyce, “Machine that Changed the World” interview, video, IA.
20. No recollection of light bulb going off: Noyce, 1982 Reid interview.
21. We were still a brand new company: Noyce quoted in Reid, The Chip, 88.
22. The idea was too obvious to bother mentioning: Wolff, “Genesis of the Integrated Circuit,” 51. (Last called the interconnection plan “an idea that was around”; Grinich said it was “one of those tings that just happened—one of those obvious things.”)
23. I wish you luck: Julius Blank, interview by author. Richard Hodgson, interview by author. Rheem’s president had been Hodgson’s classmate at Stanford. On departure of Baldwin from Fairchild: R. Dale Painter, “Seek to Settle Suit on Rheem Semiconductor,” Electronic News, 14 March 1960; Ed Woods, “Rheem Semiconductor Named in $1 Million Suit,” Electronic News, 27 July 1959; Don Hoefler, “Silicon Valley, USA” (Part 1), Electronic News, 11 Jan. 1970. Baldwin met with a representative: L. N. Duryea to Eirckson, Wright, Hanafin, and Steinmeyer, Shockley papers, SSC.
24. A disaster: Fairchild Founder B, interview by author, 19 March 1999.
25. Head and shoulders above: Tom Bay, interview by author. Everybody had still reported: Tom Bay, interview by Charlie Sporck.
26. Sure of [him]self: Don Hoefler, “I Didn’t Raise my Boy to be a Manager,” Electronic News, 17 Oct. 1966.
27. People doing research best to evaluate it: transcript of interview with Dr. Robert Noyce, [by Nilo Lindgren], no date but probably 1965, courtesy Patricia Lindgren (henceforth: Noyce 1965, Lindgren interview). Those with most insurance die soonest: Penny Noyce, interview by author.
28. Very good supervisor, casual, not interfere: Hoerni quoted in Bob Ristelhueber, “Noyce Remembered: Unusual Ideas, Unusual Approaches,” Electronic News, 11 June 1990, 4.
29. I could direct the work: Noyce, 1965 Lindgren interview.
30. Fairchild Semiconductor growth: Fairchild Camera and Instrument Annual Report 1959. Fairchild-Rheem lawsuits: suit filed on 15 July 1959 in the Supreme court of California and for the city and county of San Francisco entitled “Fairchild Semiconductor Corporation, A Corporation (plaintiff) vs. E. M. Baldwin et al.,” #491279.
31. Met with representatives: “Top Scientist from Japan Visits Fairchild,” Leadwire, Feb. 1960. Good for [his] ego: Hoefler, “I Didn’t Raise my Boy to be a Manager.”
32. Electronically active regions: Seidenberg, “From Germanium to Silicon.”
33. Cocoon of silicon dioxide: Noyce quoted in Reid, The Chip, 76. Noyce and Moore’s reactions to the planar demonstration: Jean Hoerni, interview by Charlie Sporck.
34. Hoerni planar patents: Hoerni, “Method of Manufacturing Semiconductor Devices,” U.S. Patent #3,025,589, filed 1 May 1959, patented 20 March 1962; Hoerni, “Semiconductor Devices,” U.S. Patent #3,064,167, filed 1 May 1959, patented 23 Nov. 1962. Copyright name ‘planar’: Richard Hodgson, interview by author. Dumont manufactured a vacuum tube that it called a “Planar Triode,” but I have found no connection between this tube and the planar transistor. “Planar Triode in Production at Du Mont,” Electronic News, 23 Feb. 1959, 15.
35. Not aesthetic: Noyce, interview by Kleiman. Gordon Moore remembers: Wolff, “Genesis of the Integrated Circuit,” 51.
36. I was trying to solve: Noyce, “Machine that Changed the World,” video. They don’t give Nobel Prizes: Bill Noyce, interview by author.
37. To provide improved: Noyce, “Semiconductor Device-and-Lead Structure,” U.S. patent #2,981,877, filed 30 July 1959, patented 25 April 1961. Did not want to go through all that work: Noyce, “Machine that Changed the World.” He makes a similar point in “Silicon Valley,” written, produced, and directed by Julio Moline, video, SSC.
38. Idea whose time had come: Wolff, “Genesis of the Integrated Circuit,” 51.
39. Both are necessary: Noyce, 1965 Lindgren interview.
40. Recall very vividly: Noyce, 1965 Lindgren interview.
41. Description of the flip-flop: Jay Last, “Development of the Integrated Circuit, August 1959–January 1961,” courtesy Jay Last.
42. Noyce was instrumental: Letter from Donald E. Farina, “Gut Feeling Launched Revolution,” San Jose Mercury News, 17 June 1990; Isy Haas, interview by author, 26 July 2001. Abysmal yields: The math is roughly as follows. If only half of the transistors on a given wafer are good, that means that putting together any two transistors yields chances of only one in four that the combination works; put together four transistors, and only one-sixteenth of them are good. There was talk that with 20 or 30 transistors in a given circuit, yields would be so abysmally low that each circuit that actually worked would have to cost a fortune. (Even a best-case scenario of 90 percent of transistors being functional resulted in 12 percent overall yields of 20-transistor circuits.) For more on this point, see Noyce, “Machine that Changed the World”; Kilby, “Invention of the Integrated Circuit,” 652.
As late as July 1964, a 30 percent yield for an integrated circuit containing 30 transistors was considered very good, or perhaps even “on the optimistic side,” according to Noyce. “Integrated Circuits in Consumer and Industrial Electronics,” Electronic Procurement (July 1964).
43. A simple gate: Marshall Cox interviewed in “Silicon Valley,” written, produced, and directed by Julio Moline, video, SSC. Every pound of payload required a ton of fuel: Robert Noyce, “Integrated Circuits in Military Equipment,” IEEE Spectrum, June 1964, 71.
44. Interesting and exciting: Moore quoted in Wolff, “Genesis of the Integrated Circuit.” Go ahead and pursue [ideas]:
Noyce, 1965 Lindgren interview.
45. 87 percent profit margin: Arthur Rock to partners at Hayden, Stone, and Co., “Founding Documents.” Estimated revenues would triple: FCI board minutes, 22 Jan. 1959, Anon.
46. Western Union telegram: ASB
47. Ruins the look of the building: Noyce, 1965 Lindgren interview. Paid for Noyce’s parents: D. S. Noyce, “Candles to Computers,” 269.
48. Our motivation: Jay Last to folks, undated but clearly immediately after the deal with Fairchild Camera and Instrument was signed, courtesy Jay Last. Tiny area of disquiet, the reward seemed too much: Noyce, 1965 Lindgren interview.
49. Answered questions with ease: Leadwire (Fairchild Semiconductor internal newsletter), Nov. 1959. People used to do things: Richard Hodgson, interview by author. It’s a very satisfying thing: Noyce quoted in Reid, The Chip, 186.
50. We’re not ever going to screw a customer: Bob Graham, interview by Charlie Sporck. Noyce’s yield-based system prevailed: Bob Graham, interview by Charlie Sporck. Sporck confirms the excess inventory of the low-performance device.
51. Noyce’s conversation with Yelverton: Jack Yelverton, interview by author.
52. 5,000 wires: “Off the Leadwire,” Leadwire, May 1960. An experienced workforce: Jack Yelverton, interview by author.
53. We could not wear pants: Barbara Eiler, interview by author.
54. Breakfast meetings, foremen offered management training: Leadwire, March 1963. Coffee-conversation meetings: Leadwire, Oct. 1963.
55. Introduced as Gaylord’s brother: Gaylord Noyce, interview by author.
56. Noyce comments on trip to Japan: “Dr. Robert Noyce Gives Comments on Visit to Japan,” Leadwire, June 1960
57. Noyce felt a little guilty, financially outperformed parents: Noyce, 1965 Lindgren interview.
58. Noyce share in plane: Tom Bay, interview by author. Betty did not want to be left: Penny Noyce to author, 5 April 2004.
59. Not the truth, thought religion kept people from achieving: Penny Noyce, interview by author. One event, or one man: Leadwire, Jan. 1960.
60. Immigration statistics: U.S. census data. Youth and education of new arrivals: in Palo Alto, for example, median age decreased by three years and median family income increased by 50 percent between 1950 and 1960, Findlay, Magic Lands, 147.
61. IBM Building 25: Alan Hess, “A 45-Year-Old Building Worth Saving,” San Jose Mercury News, 16 Nov. 2003.
62. Electronics sales surpassed $500 million, nearly two-thirds: Western Electronics Manufacturers Association 1961 report, reprinted in Leadwire, Oct. 1961. New startups: “Printed Circuits Firm Formed in Menlo Park,” Electronic News, Oct. 1960; “Diotran Pacific Formed by Four In Palo Alto, Cal,” Electronic News, 6 March 1961; “Firm Established in Palo Alto to Service Producers,” 18 Sept. 1961. Stanford Industrial Park tenants: Findlay, Magic Lands, 140.
63. Resources available to Fairchild Semiconductor: “Progress Report, Chemistry Section, 1 Feb. 1960,” Box 5, File 1, Fairchild R&D Reports, M1055, SSC; “Progress Report, Micrologic Section, 1 July 1960,” Box 5, File 2, ibid.; Box 6, File 1, ibid.
64. Mechanization of agriculture: Saxenian, “Silicon Chips and Spatial Structure,” 60. For a wide-ranging discussion of the experience of Latino workers in Silicon Valley, see Stephen J. Pitti, The Devil in Silicon Valley: Northern California, Race, and Mexican Americans (Princeton, N.J.: Princeton University Press, 2002). Infrastructure development: Findlay, Magic Lands, 21–22. Consolidated educational system: Preer, Emergence of Technopolis, 140.
65. World was [his] oyster, could do anything: Robert Noyce, “The Machine that Changed the World,” IA.
66. Just another employee: Jay Last interview by Charlie Sporck; Last made a similar comment in his interview with author; Jean Hoerni, in his interview with Charlie Sporck, echoed the sentiment.
67. Noyce wanted stock options and “creeping socialism”: Richard Hodgson, interview by author.
68. Camera and Instrument expanded: “The Micro-Renaissance at Fairchild Camera.” Carter claimed that all the acquisitions made sense, fitting in one way or another into the company’s core business strategy. “I didn’t go out and buy a brassiere company just because it was making money,” he said in defense of his buying spree.
69. Stock holdings of Carter and Fairchild: Carter owned 77,000 shares of Camera and Instrument stock to the founders’ roughly 5,000 shares apiece. The acquisition of Fairchild Semiconductor increased Sherman Fairchild’s personal net worth by $20 to $30 million, since the exchange of stock had immediately quadrupled Camera and Instrument’s net profits Fairchild Camera and Instrument Annual Report, 1959. Boost to Sherman Fairchild’s personal fortune: “Multifarious Sherman Fairchild,” 171.
70. Quotes for planned IBM meeting: “IBM Strategy, Mar 15 [1961],” Noyce 1961 datebook, ASB.
71. Semiconductor joined SGS: Richard Hodgson, interview by author. Other information on Fairchild’s arrangement with SGS is from “Fairchild 1961,” Leadwire, Jan. 1961, and Tom Bay, interview by author.
72. Minuteman contract: “Minuteman!” Leadwire, Feb. 1961; “FSC Signs Two Autonetics Contracts,” Leadwire, June 1960; “Autonetics Contracts: Now Total 8 Million,” Leadwire, Dec. 1960.
73. Personnel reductions in microcircuitry: Gordon Moore, “Approximate Distribution of Effort as Defined in 10/4/60 Personnel Forecast,” 18 Jan. 1961, courtesy Jay Last. OK, we’ve done integrated circuits: Gordon Moore, interview by author.
74. Last has already: Jay Last, interview by author. Tom Bay, in his interview by author, says, “I’m sure I made some comment along the lines that Jay remembers—we were spending a lot of money and not getting anything in terms of sales or fundamental interest—but I don’t ever remember feeling like we should scrub integrated circuits. I felt that [the integrated circuit] was the future for the business, but at the same time, we could not afford to spend all our energy on five-year-away projects. We had a business to run.”
75. Noyce and Moore prevented from investing: Gordon Moore, interview by author. Davis and Rock history: Harvard Business School, Working Knowledge (newsletter), 4 Dec. 2000. http://hbswk.hbs.edu/pubitem.jhtml?id=1821&t=special_reports_donedeals
76. Teledyne deal: Jay Last, interview by author.
77. Signetics funding information: Jack Yelverton, interview by author. If personnel expansion rate: Moore and Grinich to Noyce, 8 Feb., 1961; R&D Progress Report from Moore and Grinich to Noyce, 8 March 1961, Box 6, File 2. Fairchild R&D Reports, M1055, SSC.
78. On the issue with the IRS: Jay Last, interview by author; Fairchild Founder A, interview by author; Form 870, “Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Overassessment,” 23 Dec. 1963, addressed to Jay Last and courtesy Jay Last.
79. Just a job, a taste of blood: Fairchild Founder B, interview by author.
80. Growth of electronics stocks: 60 percent vs. 30 percent growth in 1958; 50 percent vs. 38 percent growth in 1959, Stuart Gellman, “Industry Still Flying High in the Market,” Electronic News, 28 Dec 1959, 1. On spinouts: “Ex-Employe[e]s File $700,000 Counter Claim,” Electronic News, 30 Jan. 1961; “Silicon Transistor Sues Ex-Employe[e]s, Seeks $1 Million,” Electronic News, 23 Jan. 1961; “Diotran Pacific Formed by Four In Palo Alto, Cal,” Electronic News, 6 March 1961; “Melapar Sues Scope, Others for $500,000,” Electronic News, 27 July 1961, 1. See also, reports on Maryland-based Computer Dynamics Corporation: “5 Man Firm Grows to 100 in First Year,” Electronic News, 7 Jan. 1963. At the end of 1961, 150–200 companies: “The Semiconductor Industry: Mayhem and Millionaires,” Electronic News, 25 Jan. 1982, Section 2, 16.
81. Improper practices and brokers’ willingness to float issues: Alfred D. Cook, “Letter from the Editor,” Electronic News, 15 Feb. 1960. Ease of raising capital: Kraus, “An Economic Study of the Semiconductor Industry,” 110. See also, “Transitron Offer Sparks Broker Deluge,” Electronic News 25th Anniversary Edition, 25 Jan. 1982, Section 2, 28.
82. On probl
ems from development to manufacturing: R&D Progress Report from Moore and Grinich to Noyce, 11 April 1961, Box 6, File 3, Fairchild R&D Reports, M1055, SSC. References to the problems moving from development to manufacturing are rife in the R&D reports.
83. Transfer procedure is plagued: R&D Progress Report from Moore and Grinich to Noyce, 11 April 1961, Box 6, File 3, Fairchild R&D Reports, M1055, SSC. Manufacturing complained: R&D Progress Report from Moore and Grinich to Noyce, 14 June 1961, Box 6, File 5, Fairchild R&D Reports, M1055, SSC. See also, “R&D Progress Report from Moore and Grinich to Noyce, 11 August 1961,” Box 6, File 7, ibid.
84. Communication lines and rest of agenda: Noyce, 1962 datebook, undated but clearly the first weekend of 1963, ASB.
85. Noyce had occasionally joined Hoerni: Jay Last, interview by author. Noyce’s reactions to departures: Jack Yelverton to author, 18 Dec. 2003; Jerry Levine, interview by author; “Drs. Hoerni, Last Resign Posts at Fairchild to Join Teledyne,” Electronic News, 13 Feb. 1961.
86. Semiconductor doubled its share: “Strong Position of Firm Cited by Fairchild Semiconductor VP,” Electronic News, 20 March 1961, 16. Record profits and sales: Fairchild Camera and Instrument Annual Report 1961. 1962 figures: Fairchild Camera and Instrument Annual Report 1962.
Chapter 6: A Strange Little Upstart
1. Job of the manager: Noyce quoted in Walter Guzzardi, “Wisdom from the Giants of Business,” Fortune (3 July 1989): 78–91. Hundred percent raise: Paul Hwoschinsky, interview by author. Andy Grove shared a similar memory in his interview with the author.
2. Staff met over cocktails: Charlie Sporck, interview by author. Camera and Instrument meetings: Nelson Stone, interview by author.
3. Executive expressions: “All around the Plant,” Leadwire, Sept. 1962. Noyce imagining portable telephones: Noyce, 1965 Kleiman interview, audiotape, SSC. Every industry will have electronics shop: Noyce, 1965 Lindgren interview. Erased own interviews: miscellaneous videos, ASB.
4. Strange little upstart: Grove quoted in Perry, “Famous First Jobs,” 50. PhDs play: Frank Wanlass quoted in George Rostky, “Thirty Years.” 16 percent of major innovations: Levin, “The Semiconductor Industry,” 54.
The Man Behind the Microchip Page 50