How much do you really know about Silicon Valley? Silicon Valley is a 30-mile long region in the southwestern corner of the San Francisco Bay Area. It is home to several of the world’s largest technology corporations and many famous headquarters. Silicon Valley has a significant impact on global culture, originating new social norms, business practices, and technological developments. As a result of its fame as an innovative center and its record as one of the most competitive regions in the United States, it is sometimes referred to as “the Capital of V”.
If you are one of the geeks in the technology industry, then you must know revealing facts about Silicon Valley. Some interesting facts below will give you more insights and broaden your knowledge. Here are surprising Silicon Valley facts that will make you wish to work in this region. Let’s check this out!
1. The Mecca for Business and Innovation
The Silicon Valley area of the United States is home to the majority of startup tech enterprises. Six of the top ten information technology companies—Cisco Systems, Google, Intel, Hewlett-Packard, Apple, and Oracle—are headquartered in Silicon Valley, if you just consider market capitalization. In fact, if you were to map the corporate offices of these companies, they would all be located within a circle with a radius of about 10 miles. When you think about it, it’s amazing.
Furthermore, these businesses don’t merely have “headquarters” in Silicon Valley. From the perspective of product and technology development, Google and Apple are quite centralized. Despite the fact that there are a number of emerging and expanding U.S. technology centers, Silicon Valley still seems to be the country’s innovation mecca.
2. Behind The Name of Silicon Valley
Sand is the reason why Silicon Valley has that name. It was originally used as a word on the cover of Electronic News Magazine on January 11, 1971. A three-part series about the history of the semiconductor, written by published writer Don Hoefler, was titled “Silicon Valley U.S.A.” The phrase quickly got linked to technology to the point where they are now practically synonymous.
Hoefler opted to name his articles on semiconductors after silicon for a purpose. In 1971, many businesses producing computer chips, like Intel, had operations or headquarters in the area that is now known as Silicon Valley. Sand is used as the first semiconductor component in the production of computer chips.
3. It All Started With A Garage
In 1938, William R. Hewlett and David Packard started working on their first product in a converted shed in the Palo Alto suburb, which is where the mythology of the Silicon Valley garage got its start. In a valley where government money was being turned into silicon, the concept of the garage as a place for creation first emerged. Despite the fact that Stanford and venture capital have been linked to Silicon Valley, its true origins lie in publicly sponsored military research conducted during World War II.
The garage, originally designed for the storage of automobiles, has evolved into a symbol, a myth, and a commonplace item in the residential scene that gave rise to the industrial tech complex. It is at the heart of many corporate success stories in the 20th century, from driver to entrepreneur. Everyone was aware of Elon Musk. Mark Zuckerberg, Bill Gates, and Steve Jobs are. They are only a small group of the multi-billionaires who emerged from a garage to dominate the Silicon Valley technology sector.
4. Silicon Valley Explosive Growth
Silicon Valley and expansion have been almost exclusively associated since the invention of the integrated circuit. Around 18,000 high-tech occupations were present in the area in 1959. There were over 117,000 of these jobs in existence in 1971, and there were nearly 268,000 of them in 1990.
The development of integrated circuits transformed the electronics sector and paved the way for many common household goods, computers, CD players, televisions, and mobile phones. Additionally, the proliferation of chips contributed to the globalization of cutting-edge electronic equipment.
5. The Place of Many Billionaires
A remarkable pattern has emerged as a result of Silicon Valley’s propensity to produce billionaires: 19 of the 26 Californians who are among the top 100 wealthiest Americans reside in the Bay Area. Just 12 of the 100 richest people in the nation, if they were evenly distributed, would call this place home. Yes, Silicon Valley is largely to blame for this.
According to Forbes, 35 individuals became the state of California’s first billionaires in 2021, and more than half of them owed their success to the IT sector. California continues to have more billionaires than any other state, with 126 more in New York.
6. It Grows Bigger During Pandemic
Before the pandemic, there had never been so much money in Silicon Valley, still the global hub for digital start-ups. In comparison to 2019, there were twice as many Valley businesses that went public in 2020. According to Forbes, there are currently 365 billionaires whose wealth is based on technology, up from 241 before the pandemic.
End of July 2020 saw Amazon release its quarterly results. Instead of making zero money, as Mr. Bezos had forecast, Amazon made a record-breaking operating profit of $5.8 billion for the company. Apple, Alphabet, Nvidia, Tesla, Microsoft, Amazon, and Facebook’s aggregate stock market capitalization climbed by over 70% to more than $10 trillion.
7. A New Unit of US Department of Defense Is Based In Silicon Valley
The US Department of Defense established a military agency called the Defense Innovation Unit (DUI) to meet the nation’s communication and technological needs. The office is thought of as the “Pentagon’s Innovation Experiment” and is situated adjacent to industrial IT heavyweights. They are opening up that area in order to encourage significant service collaboration and cross-pollination.
The DIU’s goals are to fortify existing connections and forge new ones, as well as to look for cutting-edge and up-and-coming technology and represent the department locally in Silicon Valley. The DIU team in Silicon Valley collaborates not only with national but also with international businesses.
8. Silicon Valley Has Gone Through The Great Depression
Silicon Valley, the area behind which it has achieved success, also experienced the Great Depression. Many employees had no choice but to join labor unions in the early 1920s and 1930s due to unanticipated unemployment, overproduction, and deflation in the hopes of obtaining decent salaries to support families. The region went through a turbulent period, but it eventually managed to recover from despair after enduring business and political fights.
The U.S. stock market plummeted by close to 50% during the brief crisis known as the Forgotten Depression that lasted from 1920 to 1921, while corporate profits plunged by more than 90%. Throughout the remaining years of the decade, the American economy grew strongly.
9. Most Expensive Home in Silicon Valley
Just wait until you hear the price of the most expensive mansion in the San Francisco Bay area! The asking price for a typical decent property would be $1 million, which would cover two comfy bedrooms, a kitchen and dining area, and a comfortable bathroom. High-end properties often cost between $1 million and $40 million.
However, the staggering cost of a Palo Alto estate appraisal is $100,000,000! The most expensive property in the area is a mansion in Silicon Valley that recently went on the market and is seeking a stunning US$135 million. There are 32 bedrooms and 26 baths in the enormous 74-acre estate. Scott McNealy, the founder of Sun Microsystems, is the owner of the opulent property.
10. Classified As Smart City
Silicon Valley, which is home to many firms working on underlying technologies like AI and IoT, has a significant advantage in the development of smart city solutions. To create public places that are secure, welcoming, and sustainable, the local cities are encouraging the development of smart city companies. Silicon Valley developed into a hub for technology, able to create a self-sufficient neighborhood with all the amenities residents and workers require, including shops, eateries, banking, transit, and more.
Moffett Field was moved to San Diego after NASA took over command of the naval activity in San Francisco Bay. The neighborhood’s other businesses, though, remained. More IT and aerospace businesses have shifted here. Engineering, electronics, the pharmaceutical industry, and other technology-based businesses were all over the place.
11. Silicon Valley Workforce Is Diverse
Although Silicon Valley is the world’s top hub for creativity and brilliance, it has issues with unconscious bias and diversity. Therefore, today’s tech executives make a big deal out of their dedication to “diversity and inclusion.” Slow but sure, the percentage of underrepresented minorities working for the company increased from 19% in 2014 to 23% in 2017.
In the Apple company, Asians make up 21% of Apple personnel, followed by Blacks at 9%, Hispanics at 13%, and multiracials at 3%. White people make up about 54%. According to Apple, women make up 32% of all employees and 23% of those in tech roles. Meanwhile, 56 percent of Google’s employees were white, 35% were Asian, 4% were Hispanic, 2% were black, and fewer than 1% were other races in 2017.
12. Most Influential and Famous People from Silicon Valley
There are many influential and well-known personalities from Silicon Valley. Without the intelligence and engineering talents of his best buddy Steve Wozniak, Steve Jobs could not have created Apple. Tim Cook took over the business when Jobs passed away and carried on his legacy. Tesla and Elon Musk’s Boring Company are able to develop the most cutting-edge innovations and even launch spaceships.
Moreover, in order to boost Facebook’s messaging market, Mark Zuckerberg has Mark Marcus riding on his back. Meanwhile, Jack Dorsey, the CEO of Twitter, weathered a number of social media controversies in recent years.
13. One of The Most Number of Patent Filed In A Place
After the year 2013, Silicon Valley has consistently topped the list of regions with the highest number of patent inventions and research discovery filings. However, Silicon Valley and Guangdong were ousted by Tokyo today. In fact, Tokyo in Japan, Guangdong in China, and Silicon Valley in the US frequently compete for the most petitions.
With 8,000 patents, Silicon Valley (San Francisco-Oakland-San Jose) did manage to place third. Total number of patents issued to Apple Inc. between July 1, 2019, and June 1, 2020: 1,996. A total of 1,702 patents were filed by Alphabet/Google Inc. in the same period. Total patents filed by Facebook Inc. during the same time is 836.
14. Average Salary in Silicon Valley
Over the past three years, earnings of the wealthiest earners in Silicon Valley have grown faster than those of their counterparts countrywide. The leading industry in Silicon Valley paid employees an average salary of $133,204 in 2021, a 5% rise over 2020, according to data from Dice Insights that was made public. In comparison to Seattle, the No. 2 location on the Dice Insights list, the annual tech salaries in this region were $14,475 higher.
Of course, the higher positions such as directors and managers receive the highest salaries. However, the average salary for a product development engineering team, for instance, is $173, 570 a year. That’s already a big amount of money!
15. Silicon Valley Is Figuratively Growing A Mountain of Money
Silicon Valley generated $837.7 billion in revenue in 2015. Only the top 150 companies’ combined revenues are shown. Imagine if we included all of the income from nearby businesses! The top 150 businesses in 2018 already generated $1.078 trillion in the final quarter. The remaining three months of that year and additional businesses are not included in that sum yet.
Apple, Google, and Meta are the three largest businesses with annual revenues above $100 billion in 2021. Apple had the highest price-to-earnings (P/E) ratio at 28.7. Google and Meta are in second and third place, respectively, with 25.5 and 17.2.