What is Silicon Valley?

Silicon Valley is a moniker for the southern San Francisco Bay Area in California. It is in the Valley of Santa Clara and has expanded to include parts of Gilroy and East Bay. The region has the name of “silicon” due to the high number of companies producing silicon chips in the past. Currently, there are numerous high-tech companies located in the valley.

The high influx of technological companies has given the name two meanings. One of the meanings that refer to its geographical appearance as a valley and the other to refer to a region with a lot of high-tech companies. Even similar regions in the world use this name.


Silicon Valley as an idea was conceived around the time of the Great Depression. William Hewlett and David Packard, with the help of their professor at Stanford University, Frederick Terman, went ahead and started the technology giant Hewlett Packard (Hp) in 1938.

Although most of the credits go to Hp as pioneers in Silicon Valley, it would not have been possible for the valley to exist without Fredrick Terman. The professor established the Stanford Industrial Park, which leased land and collaborated in the search for the first organizations in the park that had been fed by the Internet.


Companies in the region have created numerous jobs. In 2006, 225,300 works were created that were all related to technology. The average salary for these jobs is also the highest at $ 144,800. As a result, the region and its surroundings have the most millionaires and billionaires because of technology. Furthermore, Silicon Valley is the largest high-tech manufacturing region in the United States. In 2011, 41% of all venture capital in the United States went to the region while it was 46% in 2012. As a result, more companies are starting branches in the region. The high number of jobs has exceeded the number of homes that have caused a severe housing shortage.


Estimates place the region’s population between 3.5 and 4 million. Starting in 1999, studies show that a third of the engineers were immigrants. About a quarter of high-tech companies have been run by people from China since 1980.


The valley was called Death Valley at some point due to the panic created by the technology that took human work. Furthermore, there are thirty cities in the valley with five universities including the university of the valley, Stanford University.

Thousands of technology companies around the world have their headquarters in the valley, 39 of which are Fortune 1,000 companies. Diversity is a problem for companies in the region with 8.8% of them with women CEOs. The total profit of the region is estimated at a whopping $ 250 billion.

by Abdullah Sam
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