Silicon Valley

AAA

DEFINITION of 'Silicon Valley'

A part of the San Francisco Bay Area that is known for the many technology companies that have either started in the area or that have offices there. Major companies located in Silicon Valley include Google, Apple, Facebook and Yahoo. Silicon Valley is one of the wealthiest areas of the United States. In May 2012, the New York Times reported that 14% of households in Santa Clara county, located in Silicon Valley, and in San Mateo County, earn over $200,000 per year.

INVESTOPEDIA EXPLAINS 'Silicon Valley'

The Santa Clara valley south of San Francisco extending down to San Jose was dubbed Silicon Valley in the 1970s after the silicon transistor, which was invented in the area and is used in all modern microprocessors. Two engineers from Shockley Semiconductor would later go on to found Intel Corp.

RELATED TERMS
  1. Topless Meeting

    A meeting in which participants are not allowed to use laptops. ...
  2. Dotcom

    A company that embraces the internet as the key component in ...
  3. Moore's Law

    An observation made by Intel co-founder Gordon Moore in 1965. ...
  4. New Paradigm

    In the investing world, a new paradigm is a totally new way of ...
  5. Creative Destruction

    A term coined by Joseph Schumpeter in his work entitled "Capitalism, ...
  6. New Economy

    A buzzword describing new, high-growth industries that are on ...
RELATED FAQS
  1. How did Larry Page amass his wealth?

    Larry Page amassed his wealth primarily through the invention of Google. While at Stanford University, Page and his research ... Read Full Answer >>
  2. Why is Frank Quattrone credited with contributing to the growth of the dotcom bubble?

    Frank Quattrone was one of the most powerful figures during the dotcom bubble. He was one of the first investment bankers ... Read Full Answer >>
  3. Does technology follow the law of diminishing marginal returns?

    The law of diminishing marginal returns does sometimes apply to the technology industry. The law states that as employee ... Read Full Answer >>
  4. What advice has Larry Page given to would-be entrepreneurs?

    Larry Page, the co-founder of Google, is undeniably one of the most important technology influencers in the world. Though ... Read Full Answer >>
  5. How does Tim Cook's vision for Apple differ from that of the late Steve Jobs?

    Before his death in 2011, billionaire tycoon Steve Jobs handed over control of Apple to Tim Cook, then the company's Chief ... Read Full Answer >>
  6. What lessons did the tech bubble crash give to investors in the Internet sector?

    The tech bubble crash taught investors that despite their efforts to provide an influx of cash into a rapidly growing market, ... Read Full Answer >>
Related Articles
  1. Fundamental Analysis

    Cashing In On The Venture Capital Cycle

    Find out how VC firms make the market go round, and round and round.
  2. Investing

    Choosing The Winners In The Click-And-Mortar Game

    E-tailing has changed the way consumers do nearly everything. Do you know how to pick the best retailer?
  3. Active Trading Fundamentals

    How The Power Of The Masses Drives The Market

    Market psychology is an undeniably powerful force. Find out what you can do about it.
  4. Active Trading

    Sorting Out Cult Stocks

    Is that crazy product going to be the next big thing? Learn how to evaluate these companies here.
  5. Active Trading

    Market Cycles: The Key To Maximum Returns

    You need to understand the various phases of the market cycle to avoid bubbles and make the best investments.
  6. Budgeting

    The Greatest Market Crashes

    From a tulip craze to a dotcom bubble, read the cautionary tales of the stock market's greatest disasters.
  7. Professionals

    6 Tech Trends Advisors Must Stay Ahead Of

    Mobility, security, freedom and integration are the new objectives that most modern financial advisory firms are shooting for in the digital age.
  8. Investing

    What Makes Apple Inc. So Valuable?

    Apple is the most valuable company in the world by a landslide. How did it get there and will it stay on top?
  9. Charts & Patterns

    Are These the Top 3 Value Stocks of 2015?

    A look at three value plays for the long-term investor.
  10. Economics

    What are Pork-Barrel Politics?

    Pork-barrel politics is a form of patronage whereby politicians favor their constituents in exchange for benefits such as campaign donations and votes.

You May Also Like

Hot Definitions
  1. Redemption

    The return of an investor's principal in a fixed income security, such as a preferred stock or bond; or the sale of units ...
  2. Standard Error

    The standard deviation of the sampling distribution of a statistic. Standard error is a statistical term that measures the ...
  3. Capital Stock

    The common and preferred stock a company is authorized to issue, according to their corporate charter. Capital stock represents ...
  4. Unearned Revenue

    When an individual or company receives money for a service or product that has yet to be fulfilled. Unearned revenue can ...
  5. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation ...
Trading Center