William Shockley worked for Bell Labs and managed John Bardeen and Walter Houser Brattain, the two guys who did the research on semiconductors that led to the transistor. Shockley, Bardeen and Brattain shared in a Nobel Prize. (Bardeen went on to share in a second Nobel Prize involving the theory of superconductivity.)
Shockley left Bell Labs, moving close to his aging mother in Palo Alto. He started Shockley Labs and hired some uber-bright people. Turns out that Shockley - who was a crackpot whose theories included an embrace of eugenics - was a terrible manager and one day, eight of his best employees left Shockley Semiconductor Labs to form Fairchild. Curiously, given you could easily leave an employer who you felt you could outperform, people left Fairchild as well, and the companies that sprouted up from those exits were referred to as the Fairchild(ren). The most famous of those was easily Intel, founded by Gordon Moore (of Moore's law fame) and Robert Noyce who proved much better managers than Shockley, who died a bitter and committed conspiracy theorist.
The string of silicon companies led to the nickname Silicon Valley, a description of a new, transformative technology that twice democratized information. Once by its unprecedented processing power and its effect on information technology evolution, an exponential rise in computing power that we've still not fully realized the consequences of. And secondly by creating cultures responsive to the fact that great employees could leave to become competitors so better to give them leadership influence and even equity rather than leave them with incentive to leave your employ to become competitors. This, too, is a consequence we have yet to see the culmination of, a democratization of management and leadership within the corporation.
Silicon Valley is a description that now applies to companies in Seattle. Microsoft, Amazon, Redfin, and Zillow are companies that are casually lumped under the label of Silicon Valley. They - of course - are software companies and rely on, rather than make, silicon. It seems as though Silicon Valley is the wrong label for King County, home to two successive, "richest man in the world" entrepreneurs, Gates and then Bezos.
Perhaps the new label should be Algorithm Alley, a nod to the early 21st century rise of the software that so exploits the potential of the silicon of the late 1900s. Silicon Valley gives way to Algorithm Alley.