Silicon Valley Historical Association

Fred Terman, The Father of Silicon Valley

Fred Terman was a graduate of Palo Alto High School and Stanford University. In 1924, he was awarded a doctorate in Electrical Engineering at the Massachusetts Institute of Technology (MIT). Terman’s academic advisor at MIT, Vannevar Bush, wanted Terman to remain at MIT as a professor. Terman accepted the offer but returned to Stanford for the summer. He came down with tuberculosis and was unable to return to MIT. During his convalesce near Stanford University, Terman was able to teach a course or two in between his rest. He eventually decided to remain at Stanford where he built up the Engineering Department at the University as a world-class facility. Terman is recognized as the person who convinced Bill Hewlett and Dave Packard to form Hewlett-Packard Company. 

Other Lesser-Known Facts About Fred Terman:

1. During World War II, Terman was asked to work on the East Coast on secret military projects by his former adviser, Vannevar Bush. It was during this time that Terman was able to witness firsthand, how the U.S. military awarded research grants to universities. Once WWII was over, Terman made certain that Stanford University would be one of the select universities to receive military research grants.
 
2. In 1952, William Shockley was one of the recipients of the Nobel Prize for the invention of the transistor. Shockley announced his intention to start a company to commercialize the transistor. Shockley had grown up in the town of Palo Alto and recognized its positive attitudes about risk and the formation of new companies. Before choosing a location for the new company, Fred Terman wrote Shockley a letter that asked him to consider starting his company in Palo Alto. When Shockley started Shockley Semiconductor in Palo Alto, Stanford engineering students became part of the original workforce.
 
3. When Stanford Business Affairs Vice President Al Brandin introduced the idea of a Stanford Research Park, it was Fred Terman who ran with the idea to make it a fantastic success. As Dave Packard commented, ”We and Fred had sort of a game. Fred would tell these companies what a great place this was going to be and we would back him up with that. The old one-two punch!”

4. When the Traitorous Eight left Shockley to start Fairchild Semiconductor, they chose to stay in Silicon Valley because of the weather and the business climate. When the name Silicon Valley was adopted as the name of the economic region, it also must be understood that the business environment of the region was already unique to entrepreneurs. Now it finally had a name.

Read about Stanford University’s impact on Silicon Valley.