This in-depth guide covers the full story of Fairchild Semiconductor – its ambitious founding, groundbreaking early achievements, rollercoaster-like journey through changing fortunes, and ultimate demise, leaving behind a profound high-tech legacy.
Overview
Founded in 1957 by disgruntled scientists from Shockley Laboratory, Fairchild Semiconductor established itself as a leading pioneer in early silicon computing components. Over its storied six-decade run, this seminal firm introduced breakthrough technologies powering the computer revolution, fueled the growth of Silicon Valley startups, and battled through ownership changes, financial troubles, and ever-rising competition.
Although the famous Fairchild name faded away after acquisition in 2016, its enormous contributions still reverberate through today’s digital electronics realm. This comprehensive history explores those world-changing innovations along with the company’s many ups, downs, spin-offs, and ripple effects across the tech universe.
The Ambitious Launch of a High-Tech Pioneer (1957)
Frustrated by the difficult leadership of Nobel laureate William Shockley, eight of his most talented researchers struck out on their own in 1957 to launch an ambitious new venture – Fairchild Semiconductor.
| The “Traitorous Eight” Founders of Fairchild |
|---|
| Julius Blank |
| Victor Grinich |
| Jean Hoerni |
| Eugene Kleiner |
| Jay Last |
| Gordon Moore |
| Robert Noyce |
| Sheldon Roberts |
Backed by $1.5 million from businessman Sherman Fairchild and Arthur Rock, the “Fairchild Eight” aimed to revolutionize the fledgling field of silicon transistor manufacturing. Locating their operation in Mountain View, California, they pioneered innovative techniques like Hoerni’s planar process while releasing advanced products like early integrated circuits.
As research head Dr. Morris Chang explained, “At Fairchild, we developed silicon technology from scratch creating a revolution comparable to the introduction of aviation.” Fairchild’s reliable silicon solutions quickly gained traction in military and aerospace applications, establishing its early technical reputation.
Pioneering Integrated Circuits and Sparking the Computer Revolution (Late 1950s/1960s)
Buoyed by its initial momentum and talented staff, Fairchild embarked on a highly prolific product development streak toward the end of the 1950s. Physicist Robert Noyce invented the integrated circuit concept in 1959, essentially printing an entire electronic system onto a tiny silicon surface.
This revolutionary microchip provided the technological spark setting the computer revolution ablaze over the next decade. As production capacity ramped up into the mid-1960s, integrated circuits became core components across early computing systems, Apollo space modules, and other advanced electronics projects.
| Year | Milestone Fairchild Innovation |
|---|---|
| 1957 | First commercial silicon transistor |
| 1959 | Planar process (Hoerni) Integrated circuit (Noyce) |
| 1960 | First planar transistor |
| 1961 | Dual transistor |
| 1962 | Power transistor |
| 1964 | Quadruple transistor |
| 1965 | First operational amplifier IC |
With game-changing breakthroughs like Noyce’s integrated circuit attracting positive press coverage, Fairchild’s annual revenues skyrocketed from just $500,000 in 1958 to over $130 million by 1965. The firm expanded operations across the world while ranking as the globe’s second largest semiconductor company behind only Texas Instruments.
Spin-Offs, Financial Struggles, and Leadership Changes (Late 1960s-1970s)
However, significant challenges lurked below the surface of Fairchild’s booming 1960s business. Noyce and coworker Gordon Moore departed to launch rival chipmaker Intel in 1968, soon joined by over 100 Fairchild engineers later seeking greener pastures.
As technologist Tristan Greene observed, “Fairchild’s fire burned bright but faded quickly…outpaced by hungrier and more nimble competitors.” From 1969 to 1973, the firm’s annual sales plunged from $179 million down to $74 million. Sherman Fairchild retired while National Semiconductor carved out market share through aggressive discount pricing.
Seeking a lifeline from deep financial losses, Fairchild allowed Schlumberger Ltd. to acquire 70% ownership in 1979. But even with infusion of fresh capital, the company continued struggling to regain footing over the next several years.
Bouncing Between Owners (1987-2016)
With share prices tumbling and yearly deficits mounting over $50 million by 1987, Schlumberger finally sold its languishing Fairchild unit to National Semiconductor for $200 million. National experienced mixed results over the next decade, ultimately spinning off Fairchild again to Citicorp Venture Capital in 1997 for $550 million.
Now solo once more, Fairchild adopted an aggressive acquisition strategy – purchasing Power Integrations, Samsung’s power division, and multiple others. This consolidation strategy combined with concentrated focus on high-growth sectors enabled Fairchild’s value to swell over 2000s and early 2010s.
After changing majority owners several more times though, the historic company was sold one last time to ON Semiconductor in 2016 for $2.4 billion. With Fairchild’s absorption finally complete later that year, its pioneering six-decade run wrapped up leaving an incredible high-tech legacy in its wake.
Lasting Legacy as the “Grandfather of Silicon Valley”
Journalists, historians, and technologists widely hail Fairchild Semiconductor as among the most influential companies ever in birthing today’s digital electronics sphere. Early entrepreneurial spin-offs like Intel and Kleiner Perkins Caufield & Byers carry Fairchild’s hardwired DNA while setting templates for subsequent startups across Silicon Valley and worldwide.
Even with its eventual demise, Fairchild’s technical accomplishments and staff diaspora igniting the thriving high-tech hub cement its stature as the “Grandfather of Silicon Valley.”
As economist Ross Knox Bassett concluded, “Fairchild was rarely the leader in any particular semiconductor. However, its dominance came from repeatedly creating or expanding new markets…Fairchild was often first into a new product area.”
From freshly training seminal talent to introducing core building blocks powering computers globally, this pioneering powerhouse earned a lasting place among history’s most important technology enterprises. Though the famous Fairchild name has passed, its boundary-pushing spirit still echoes through every device running the company’s elementary microchips even today.
