In the late 1950’s, there were three people who were at the epicenter of a huge breakthrough in the world of electronics, the invention of the Integrated Circuit (IC). Jack Kilby of Texas Instruments, Kurt Lehovec of Sprague Electric Company, and Robert Noyce of Fairchild Semiconductor. In August 1959, Fairchild Semiconductor Director of R&D, Robert Noyce asked Jay Last to begin development on the first Integrated Circuit. They developed a flip-flop with four transistors and five resistors using a modified Direct Coupled Transistor Logic. Named the type “F” Flip-Flop, the die was etched to fit into a round TO-18 packaged, previously used for transistors. Under the name Micrologic, the “F” type was announced to the public in March 1961 via a press conference in New York and a photograph in LIFE magazine. Then in October, 5 new circuits were released, the type “G” gate function, a half adder, and a half shift register.
These first few integrated circuits were relatively slow, and only replaced a handful of components, while being sold for many times the price of a discrete transistor. The only applications that could afford the high prices were Aerospace and Military systems. The low power consumption and small size outweighed the price drawbacks, and allowed for new and more complex designs. In 1961, Jack Kilby’s colleague Harvey Craygon built a “molecular electronic computer” as a demonstration for the US Air Force to show that 587 Texas Instruments IC’s could replace 8,500 discrete components (like transistors and resistors) that performed the same function. In 1961, the most significant use of Fairchild Micrologic devices were in the Apollo Guidance Computer (AGC). It was designed by MIT and used 4,000 type “G” three input NOR gates. Over the Apollo project, over 200,000 units were purchased by NASA. The very early versions were $1000 each ($8000 today) but over the years prices fell to $20-$30 each. The AGC was the largest single user of IC’s through 1965.
Note that although Fairchild designed and owned the type “G” device, they were mostly made by Raytheon and Philco Ford under licence from Fairchild. Over this time many semiconductor manufacturers such as Texas Instruments, Raytheon and Philco Ford were also making large scale silicon production for other military equipment. These included the LGM-30 Minuteman ballistic missiles, and a series of chips for space satellites. This major investment from the government and the military kick started the development of the increasingly complex semiconductor, and eventually forced the prices low enough for non military applications. The processes improved and by the end of the Apollo program, hundreds of transistors could be fitted into an IC, and more complex circuits were being made. Eventually the costs of adding more transistors to a circuit got extremely low, with the difficulty being the quality of manufacturing. It could be argued that NASA and the Pentagon paved the way for silicon device production as we know it today.