In late 1957 and early 1958, eight researchers known as the 'traitorous eight' resigned from Shockley Semiconductor Laboratory after Shockley decided not to continue research into silicon-based semiconductors. They went on to form Fairchild Semiconductor, a major company in the industry. This event had a long-lasting impact on the development of Silicon Valley.

William Shockley, John Bardeen, and Walter Brattain were jointly awarded the 1956 Nobel Prize in Physics for their research on semiconductors and their discovery of the transistor effect. This marked a pinnacle of their scientific achievements and a recognition of the transistor's revolutionary impact on electronics and technology.