The story of Silicon Valley started in 1938 with the brilliant Stanford University professor of electrical engineering, Frederick Terman. Teaching radio engineering, he encouraged his students to work for local companies and to start businesses of their own. It troubled him that his best graduates had to go to the East Coast to find employment, especially in the field of radio engineering. His solution was to establish the then-new radio technology locally. Among two of the students were William Hewlett and David Packard. Their audio-oscillator, designed with Terman's help and only 500$ cash, became the basis for a later deal with Walt Disney Studios in 1939, for the film "Fantasia". Hewlett-Packard is set up in 1939 and is, nowadays, a multi-national, multi-billion dollar giant.
After the Second World War, Standford University attracted some federal funds for electronic research and area companies was also engaged in defense-related work during the Cold War. The zone attracts great inventors and Standford Industrial Park is developing. At the start of the semiconductor industry in 1950, the population of Santa Clara County, the heart of Silicon Valley, was 3 million people. With the establishment of Stanford Industrial Park in the mid 50's, the very character of Silicon Valley as a conglomeration of inter-related, interbred technology companies took hold. William Shockley founds a lab in 1956 who attracts some of America’s best young engineer. Fairchild Semiconductor company sells their first successful integrated circuit which is made of silicon and becomes the industry standard. This company was founded by engineers who worked with Schokley but they thought that his behavior became erratic and left the lab. Their products, all based in one way or another upon the semiconductor, with its silicon chip brain, will give the name for the area: "Silicon Valley". In the next 30 years, nearly 100 semiconductor firms entered in