Lecture 1

The Story of Chips

How humans learned to control electrical signals and made modern computation possible.

inventionswar and calculationchip industrylogic gates
Opening poll

What are humanity's greatest inventions?

Suggest one invention. We will collect the class's ideas and vote.

The story begins

A tiny switch becomes a source of power

Scientific idea×Manufacturing×Markets×Institutions

No single invention changes the world by itself. It must be made reliable, manufactured at scale, paid for, and woven into human life.

Historical narrative adapted from Chris Miller, Chip War (2022).

World War II

Industrial power meets information

Factories still decided how many aircraft, ships, and tanks a nation could deploy. But radar, rockets, cryptanalysis, and precision instruments showed that calculation was becoming military power too.

A mechanical bombsight combined altitude, airspeed, wind, and geometry to estimate when a bomb should be released.

A Norden mechanical bombsight displayed in a museum
Norden bombsight. Rama, CC BY-SA 3.0 FR, Wikimedia Commons.
The demand for calculation

Why did computing need vacuum tubes?

A wire carries current and a resistor limits it, but neither lets one small signal control another, larger signal.

A triode vacuum tube introduced the crucial new ability: a small voltage at its control grid could regulate a much larger current, with no moving contact. It could therefore amplify a weak signal or act as a fast electronic switch.

ENIAC used roughly 18,000 such switches, gaining electronic speed at the cost of heat, power, size, and reliability.

Betty Snyder and Glen Beck programming the room-sized ENIAC computer
Betty Snyder and Glen Beck program ENIAC, circa 1947. U.S. Army photograph, public domain.
The engineering question

Could a solid replace a vacuum tube?

Vacuum tube
  • Glass enclosure and heated filament
  • Bulky and power hungry
  • Difficult to pack densely
Semiconductor device
  • No heated filament
  • Electrical behavior can be controlled
  • Can be made tiny at scale

William Shockley believed the next switch would be built from a semiconductor: a material whose conductivity can be deliberately changed.

Bell Labs

Brilliance, collaboration, and rivalry

Shockley was a gifted theorist and an abrasive colleague. In 1945 he proposed controlling current through silicon with an electric field, but his experimental device produced no useful measurable result.

John Bardeen's theoretical insight and Walter Brattain's experimental skill found a different route through the problem.

John Bardeen, William Shockley, and Walter Brattain at Bell Labs
Bardeen, Shockley, and Brattain, 1948. AT&T publicity photograph, public domain in the United States.
December 16, 1947

The current finally moves

Bardeen and Brattain placed two closely spaced gold contacts on germanium. A small signal at one contact controlled a larger current at the other.

The point-contact transistor proved that a solid-state device could amplify and control an electrical signal.

Further reading: Computer History Museum, “Invention of the Point-Contact Transistor.”

Replica of the first Bell Labs point-contact transistor
Replica of the first point-contact transistor. Windell Oskay, CC BY 2.0.
Shockley's response

Frustration becomes a second design

Before

Shockley's field-effect concept had failed experimentally.

Trigger

Bardeen and Brattain demonstrated transistor action first.

After

Working intensely and privately, Shockley conceived the junction transistor.

His three-layer semiconductor “sandwich” could use a small input to control a much larger current: amplification, and also switching - on, off, on, off.

A human invention

Who invented the transistor?

Research direction

Shockley

Led the Bell Labs group and pursued a solid-state amplifier; after the point-contact breakthrough, he conceived the junction transistor.

Physics and design

Bardeen

Explained the surface-state barrier that defeated the earlier field-effect idea and co-developed the point-contact transistor.

Experimental invention

Brattain

Designed and refined the experiments with Bardeen, creating the contacts that produced reliable amplification.

1956 Nobel Prize in Physics: Shockley, Bardeen, and Brattain shared the prize for semiconductor research and the discovery of the transistor effect. Nobel Prize record

Invention is only step one

A laboratory device is not yet an industry

1Works once

A researcher demonstrates the effect.

2Works reliably

Engineers control materials and processes.

3Can be repeated

Factories achieve acceptable yield.

4Becomes affordable

Volume lowers cost and creates markets.

The decisive contest moved from discovering transistors to manufacturing millions of nearly identical ones.

California, 1956-1968

Birth of Silicon Valley

Shockley left Bell Labs and founded Shockley Semiconductor Laboratory in California. He recruited exceptional young engineers, then drove eight of them away through suspicion and poor leadership.

The "traitorous eight" founded Fairchild Semiconductor and helped create Silicon Valley's startup culture.

Robert Noyce and Gordon Moore later left Fairchild to found Intel: “integrated electronics.”

Further reading: Michael S. Malone, The Intel Trinity, on Robert Noyce, Gordon Moore, Andy Grove, and the making of Intel.

Gordon Moore and Robert Noyce at Intel in 1970
Gordon Moore and Robert Noyce, 1970. Intel Free Press, CC BY-SA 2.0, Wikimedia Commons.
Texas Instruments and Fairchild, 1958-1959

Kilby and Noyce make the integrated circuit

Working independently, Jack Kilby and Robert Noyce eliminated the need for wires to connect transistors.

This made the silicon integrated circuit practical to manufacture at scale.

Although Kilby and Noyce are recognized as co-inventors of the integrated circuit, Noyce did not receive the Nobel Prize because he died before the prize was awarded.

2000 Nobel Prize in Physics: Kilby received half of the prize for his part in inventing the integrated circuit. Nobel Prize record

Further reading: T. R. Reid, The Chip: How Two Americans Invented the Microchip and Launched a Revolution.

Museum replica of Jack Kilby's first integrated circuit
Replica of Kilby's first integrated circuit. Florian Schäffer, CC BY-SA 4.0, Wikimedia Commons.
The manufacturing revolution

Print circuits with light

Jay Lathrop and James Nall pioneered photolithographic techniques for semiconductor devices. Their work turned photographic patterning into a repeatable chipmaking method.

  1. Coat: cover the wafer with light-sensitive photoresist.
  2. Expose: project a circuit pattern through a photomask.
  3. Develop: reveal selected regions of the pattern.
  4. Process and repeat: etch or add material, one layer at a time.

Credit: Lathrop and Nall filed their semiconductor photolithography patent in 1957.

A photolithography wafer-track system in a yellow-lit semiconductor cleanroom
Photolithography wafer-track system at HP Labs. Alison Chaiken, CC BY-SA 3.0, Wikimedia Commons.
Who paid at the beginning?

Military demand bought expensive first versions

Early market Military and space systems

High value was placed on smaller size, lower weight, and guidance capability.

Learning Factories improve yield

Each production run teaches engineers how to reduce defects and cost.

Mass market Computers and consumer devices

Falling prices create new uses, which drive still greater production.

A self-reinforcing cycle

Smaller, cheaper, more widely used

Better processes
More transistors per chip
Lower cost per function
New markets and volume

Moore's Law described the industry's repeated increase in integrated-circuit complexity. It was not a law of nature; it became a shared target for an enormous industrial ecosystem.

The story becomes global

Hard problems were solved across the world

United Statestransistor, integrated circuit, chip design
Soviet Unionsemiconductor science and space electronics
Japanportable consumer electronics
South Koreamemory manufacturing at scale
Taiwanthe dedicated chip foundry
Netherlandsadvanced lithography machines
Chinatelecom systems and 5G equipment

No single country mastered every layer. Different communities solved different scientific, manufacturing, and systems-engineering challenges.

Soviet Union

The danger of a “copy first” strategy

The USSR had world-class physicists and made major achievements in space and semiconductor research. Its microelectronics system, however, was secretive, centrally directed, and heavily oriented toward copying foreign designs.

Replication can close yesterday's gap. It is much less effective when manufacturing knowledge and designs are changing continuously.

Architectural model of a proposed Soviet microelectronics complex in Zelenograd
Proposed Zelenograd microelectronics complex. Audire Silentium, CC BY 2.0, Wikimedia Commons.
Japan

Sony finds the consumers

Akio Morita and Masaru Ibuka of Sony saw that small, low-power transistors could make electronics personal and portable.

Sony licensed transistor technology, then competed through product design, manufacturing, and marketing.

Transistor radios turned a military-era technology into an object people could carry through daily life.

Sony co-founder Akio Morita presenting an electronic product in 1972
Akio Morita presents a Sony television, 1972. Avelino Ginjo / São Paulo State Archives, public domain in Brazil.
South Korea

Bet the company on manufacturing scale

Samsung began as a trading business. In 1983, founder Lee Byung-chul committed the company to semiconductors despite the enormous cost and risk.

Government priorities, bank finance, large conglomerates, and relentless capital investment helped South Korea become a memory-chip powerhouse.

Samsung founder Lee Byung-chul
Samsung founder Lee Byung-chul, circa 1950. Unknown photographer, public domain in South Korea.
Taiwan

Manufacture for everyone, compete with no customer

Morris Chang proposed a dedicated foundry: TSMC would manufacture chips designed by other companies instead of selling competing chip designs of its own.

The model lowered the cost of starting a chip-design firm. It also concentrated advanced manufacturing expertise in one extraordinary company and island.

Further reading: Wesley Shu, TSMC: How One Company Came to Run the World's Chips.

TSMC founder Morris Chang
Morris Chang, 2018. Mori / Office of the President, Taiwan, CC BY 2.0, Wikimedia Commons.
Netherlands

ASML builds the tool behind the most advanced chips

ASML makes the world's most advanced chipmaking tools. Its leading systems use extreme ultraviolet light, or EUV, to print extraordinarily small circuit patterns on silicon wafers.

TSMC uses ASML's EUV machines to manufacture leading-edge chips designed by companies around the world.

The Dutch achievement combines optics, lasers, sensors, mechatronics, software, and a global supplier network into one reliable production system.

Further reading: “The world's most complex machine”, a detailed account of ASML and EUV lithography from Works in Progress.

An engineer working beside an ASML prototype extreme ultraviolet lithography system
ASML prototype EUV lithography system. © ASML, via Works in Progress.
China

Huawei helps make 5G a global reality

Huawei became a global leader in 5G telecom equipment, supplying radios, antennas, base stations, and networking systems used to carry mobile data.

Its success required difficult engineering across radio communication, signal processing, networking, semiconductors, software, and equipment that must operate reliably at enormous scale.

China demonstrated advanced capability in an entire communication system, not only in one component.

Further reading: Eva Dou, House of Huawei, a reported history of the company and its geopolitical importance.

Huawei headquarters campus in Shenzhen, China
Huawei headquarters, Shenzhen, 2012. fading, CC BY-SA 3.0, Wikimedia Commons.
Semiconductors and human life

From rare military component to invisible infrastructure

Communicationphones, networks, satellites
Healthimaging, monitors, implants
Mobilityvehicles, navigation, traffic control
LightLED lamps, displays, indicators
Knowledgecomputers, cloud systems, research
Securityradar, guidance, communications

Humans gained remarkable capability while becoming deeply dependent on a technology most people never see.

Why chips are geopolitical

No country makes an advanced chip alone

Ideas and design toolsspecialized knowledge and software
Manufacturing equipmentlithography, deposition, inspection
Fabricationcapital-intensive wafer factories
Packaging and systemschips become usable products

Specialization creates efficiency, but also dependence. A disruption at one hard-to-replace link can affect economies, public services, and national security.

The larger lesson

A chip is condensed human organization

Physics+Engineering+Factories+Capital+Policy+People

Inside a phone is not merely silicon. It is decades of accumulated knowledge, institutions, rivalry, cooperation, supply chains, and choices about who controls production.

Back to our computer

Use one signal to control another path

control = 0
channel unavailablesource output
output = 0
control = 1
channel availablesource output
output = 1

This is a functional model, not a physical cross-section. A small control signal changes whether another electrical path conducts.

From here onward, we hide the device physics and reason with two states: 0 and 1.

Further study: NPTEL Basic Electronics by Prof. M. B. Patil, IIT Bombay, covers electronic devices and semiconductor fundamentals.

Logic gates

Connect switches to make a tiny decision-maker

Input signals0 or 1
Gatefixed rule
Output signal0 or 1

A logic gate hides its transistors and exposes only inputs, an output, and a rule.

How can we describe that rule precisely without discussing the internal transistors?

Boolean Algebra

The mathematics behind chip design