Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Texas Instruments Incorporated (TXN), Fairchild Semiconductor Intl Inc (FCS), Intel Corporation (INTC): The Chip That Changed the World

Page 1 of 2

On this day in economic and business history…

The foundations of the modern computing industry were laid on Sept. 12, 1958, when newly hired Texas Instruments Incorporated (NASDAQ:TXN) engineer Jack Kilby demonstrated a working integrated circuit for the very first time.

Texas Instruments Incorporated (NASDAQ:TXN)

Kilby had begun working on his prototype through the typical two-week vacation period afforded most TI employees, as his recent hiring meant that he had not yet earned vacation time. Originally, Kilby had been assigned to a project for the U.S. Army Signal Corps — the “Micro-Module” — to develop a standardized electronic component using transistors that could snap together with others like it to create complete circuits. Kilby decided to skip the “snap-together” part and put all the components on the same chip, as TI’s historical documents explain:

[Kilby] didn’t think the Micro-Module was the answer — it didn’t address the basic problem of large quantities of components in elaborate circuits.

So Kilby began searching for an alternative, and in the process decided the only thing a semiconductor house could make cost effectively was a semiconductor. “Further thought led me to the conclusion that semiconductors were all that were really required — that resistors and capacitors [passive devices], in particular, could be made from the same material as the active devices [transistors]. I also realized that, since all of the components could be made of a single material, they could also be made in situ interconnected to form a complete circuit,” Kilby wrote in a 1976 article titled “Invention of the IC.”

Kilby began to write down and sketch out his ideas in July of 1958. By September, he was ready to demonstrate a working integrated circuit built on a piece of semiconductor material. Several executives, including former TI Chairman Mark Shepherd, gathered for the event on September 12, 1958. What they saw was a sliver of germanium, with protruding wires, glued to a glass slide. It was a rough device, but when Kilby pressed the switch, an unending sine curve undulated across the oscilloscope screen. His invention worked — he had solved the problem.

Kilby’s germanium design eventually proved inferior to a silicon chip developed by Fairchild Semiconductor Intl Inc (NYSE:FCS). However, because Kilby both demonstrated his integrated circuit and filed for a patent first, he is generally considered to be the father of this essential technology, while Fairchild Semiconductor Intl Inc (NYSE:FCS)’s Robert Noyce is honored for his work in perfecting the design. Noyce went on to help found Intel Corporation (NASDAQ:INTC) a decade after the development of the first integrated circuit, and three decades after that company’s founding, it became the first (and thus far only) dedicated chipmaker granted a place on the Dow Jones Industrial Average.

Today, integrated circuits power virtually every business operating today in one way or another, but their popularity got a little boost thanks to one big government program that became famous on Sept. 12…

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!