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COMPUTER[Industry Profile] [Silicon Valley]
Sales and revenues for computer manufacturing in this state were approximately $35 billion in 1995. The figure represents California's estimated share of the $90 billion in total U.S. sales of computers and office equipment, as reported by the American Electronics Association. Though data for 1995 are the latest available, more recent evidence points to continued healthy revenue growth in 1996. The phenomenal growth in computer and electronics industries in 1996 resulted in expansions and spin-offs of existing firms, and start-ups of new firms. Strong demand for California high-technology products in foreign nations helped drive the growth of the computer industry, as the state exported record levels of products in 1996. A new record was also set for the amount of venture capital investment in 1996. Approximately 60 percent of total venture capital investment nationwide was made in technology-based industries. Some examples for companies placed in California:
Silicon Valley Silicon Valley is an area of a few square miles south of San Francisco, between Palo Alto in the north and San Jose in the south. It is not a geographical name, nor is the area anything like a valley. Its name derives from the local industries most important material, silicon, used to produce microchips. Formerly a mainly agricultural region it is now the home of one of the fastest growing industries, the microchip and computer industry. The success of these industries led to a sharp increase in population from about 300,000 in 1940 to 1.5 million in 1987. The Apple Computer Inc. headquarters in the town of Cupertino is its unofficial capital. Famous careers
There are a lot of entrepreneur stories in Silicon Valley, but only a few have become legends. One of them is Nolan Bushnell. He was the first to realise the commercial possibilities of video games played on a microcomputer. In the early seventies, he founded Atari Inc., which developed the classic and very successful Pong and, after Bushnell had left, Pac-Man. Then there was Bob Noyce, founder of Intel, who wrote his business plan on a single sheet of paper thus launching one of the most successful companies in Silicon Valley. Because William R. Hewlett and David Packard could not find jobs, they started a company in a garage which soon became a giant in the business. And, last but not least, there is Steve Jobs who brought the microcomputer into households. Workers and minorities Apart from the well-paid computer engineers and designers, there are, of course, skilled manual workers who work at the semi-conductor plants. A high percentage of these workers are women. Most of them have a high school education and about half of this work force are members of ethnic minorities, mostly of Vietnamese and Chinese descent. They usually commute to work as they cannot afford to live in Silicon Valley. Compared with other U.S. industries, the pay for these production workers is low. Competition with other producers in the semi-conductor business, especially in Asia, is very tough, and so their jobs are constantly at risk. Work in Silicon Valley Highflyers and Whizz-Kids. Work is the most important aspect of life in Silicon Valley. Computer engineers usually work long hours, often 15 hours a day including weekends. Timing is important because being the first to offer the latest piece of high tech to the consumer guarantees survival in this heady business. The engineering work force consists almost exclusively of highly qualified people with university degrees. Nearby Stanford University provides the industry with a lot of graduates. Working in Silicon Valley can make the American Dream come true. In the 1970s, more people became millionaires here than anywhere else in the U.S. at any other time in history. Problems (living and traffic) With the rise of the high tech, business problems have also settled into Silicon Valley. Living there has become more problematic as houses and flats are almost too expensive even for successful employees. The area has become too small for new production sites so that companies must build new plants outside the "valley". The whole infra structure is confronted with serious problems such as dense traffic and pollution. The area also suffers from water shortage and sewage problems. With growing competition from inside and outside the U.S., the economic future of Silicon Valley is constantly at stake. Marriages - divorces - careers In Silicon Valley the professional aspect of life is so important that people are virtually married to their jobs, so most of them are single. In this career orientated area with its high cost of living there are few traditional couples, with a working man and house keeping wife. Relationships and marriages often suffer under the pressure of work which leaves little time and energy for anything else. As a consequence the divorce rate in this area is among the highest in the U.S. Today, divorces outnumber marriages in Silicon Valley. Working for the fast-growing Silicon Valley firms means that you have no time for people. "You have to work very, very hard to stay married in this kind of environment because there are so many distractions- like work." This is a typical statement in the "valley". Leisure time in Silicon Valley Leisure time in Silicon Valley is, of course, limited. Well-off professionals love status symbols such as luxurious cars. Ferrari and Lotus are among the favourite makes of cars. The sales of these cars are above the national average. Not surprisingly, the most popular consumer goods in this high tech community are those developed by the professionals themselves such as PCs, video recorders, home communication systems, and video games. Interest in traditional cultural entertainment such as museums, theaters, and concerts is relatively low. Even in leisure time Silicon Valley employers play an important role. They usually provide sports and recreation facilities for the employees and their families on the work site, so that they do not have to go far in order to relax. |
