Chip War

Chapter 1 outlines how World War II, a conflict dominated by industrial production, became the backdrop for the rise of semiconductor technology. The chapter introduces key figures like Akio Morita, Morris Chang, and Andy Grove, who all lived through the devastation of the war. Their experiences shaped their future roles in the semiconductor industry. Miller emphasizes how World War II relied heavily on steel, oil, and industrial output, but points out that new technologies—like early computers and atomic weapons—were already reshaping military power. This shift from industrial to digital warfare set the stage for semiconductors to become the backbone of modern military and technological advancements, as the post-war era focused on the development of smaller, faster, and more efficient computing power. This marked the beginning of the transition from steel to silicon.

In Chapter 2, Miller traces the development of the transistor, the essential component of modern computing. The chapter focuses on William Shockley, a brilliant yet arrogant physicist at Bell Labs, and his work with semiconductors, which led to the creation of the first transistor. Shockley’s initial theories about manipulating semiconductors were proven correct by his colleagues, Walter Brattain and John Bardeen, when they successfully created a device that controlled electrical current through germanium in 1947. Shockley, angered by being outdone, developed a new and improved version, ultimately designing the first functional transistor switch. This breakthrough became the foundation for future electronic advancements, though its initial recognition was limited. The transistor’s ability to amplify and switch electrical currents paved the way for massive technological developments, from radios to computers, as its role in signal amplification and computation became critical to modern electronics.

Chapter 3 highlights the development of the integrated circuit, an innovation that revolutionized the transistor and paved the way for modern electronics. The chapter focuses on two key figures: Jack Kilby at Texas Instruments (TI), who developed the concept of placing multiple transistors on a single semiconductor, and Bob Noyce at Fairchild Semiconductor, who refined the idea using the “planar method.” Noyce’s method allowed multiple transistors to be embedded directly into a single block of silicon, making the circuit more reliable, compact, and cost-efficient. Although initially costly, the integrated circuit would soon dominate the industry, driving miniaturization, reducing power consumption, and paving the way for smaller, more efficient electronic devices. Noyce’s leadership and vision, combined with Kilby’s innovations, marked a turning point in semiconductor history, transforming the technology from laboratory research into commercial products.

Chapter 4 explores the intersection of space exploration, military needs, and the early semiconductor industry. Following the launch of Sputnik and the subsequent space race, the US government and NASA urgently sought advanced technology for space missions and missile programs, which provided a vital market for integrated circuits. Bob Noyce’s Fairchild Semiconductor was a key supplier, with its chips used in the Apollo program’s guidance systems, landing astronauts on the moon. The chapter also highlights the role of Jack Kilby’s work at Texas Instruments, whose integrated circuits found a lucrative market in the Air Force’s Minuteman II missile program. These high-stakes contracts, driven by the Cold War space race and missile competition, transformed small startups like Fairchild and Texas Instruments into major players in the burgeoning semiconductor industry. This set the stage for the widespread adoption of chips in both military and consumer electronics.

Chapter 5 examines the challenges of miniaturizing and mass-producing semiconductors, focusing on the development of photolithography, a key technique that allowed for smaller transistors produced in larger quantities. Jay Lathrop at Texas Instruments discovered that by using light and a chemical process, he could “print” intricate patterns onto semiconductor materials, enabling smaller and more reliable transistors. This discovery, along with rigorous experimentation led by engineers like Mary Anne Potter and Morris Chang, made it possible to mass-produce integrated circuits for military and space applications, such as the Minuteman missile and Apollo program. The chapter underscores the collaborative efforts required to turn theoretical advancements into practical, scalable technologies, emphasizing that the success of the semiconductor industry relied on innovative manufacturing processes as much as on scientific breakthroughs. These developments set the stage for the mass market adoption of chips in the following decades.

Chapter 6 details how Fairchild Semiconductor transitioned from military reliance to pioneering the civilian chip market, spurred by innovations like Moore’s Law and Noyce’s vision. The US military provided crucial early demand for integrated circuits, but Bob Noyce envisioned a broader market beyond military applications, believing that consumer electronics held greater potential. As chip production scaled up and prices dropped, Fairchild began selling chips for civilian use, expanding the market for computers and other electronics. By the late 1960s, Fairchild was thriving in the civilian sector, supplying millions of chips to computer manufacturers. Meanwhile, Fairchild’s top engineers, frustrated with the lack of stock options and motivated by the financial opportunities in the rapidly growing semiconductor industry, began defecting to start their own ventures. This exodus marked the beginning of Silicon Valley’s startup culture, driven by the desire for wealth through technological innovation.