Technological Importance of the Microchip

A microchip is a tiny, square slice of semiconducting material--often silicon--on which an integrated circuit is formed. Microchips are essential components of computers and just about every other electronic device manufactured today.

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Advances
- The microchip has only been in existence for 40 years or so, but it would be fair to say that in that time it has changed the world. Advances in microchip technology in the late 20th century led to the creation of completely new industries, such as robotics, and the rapid expansion of others, such as computer manufacturing.
Impact
- The microchip was invented in 1970, but, according to Professor Nicholas Crafts of the London School of Economics, created more of an impact in a few short years than steam power did at its peak. Steam power was patented in the latter part of the 18th century, but took 80 years to reach its full potential.
Gains & Losses
- The development of the microchip has led to losses and gains. Transport and communication costs have fallen and the financial services sector has prospered, but farming has suffered. Overall, however, employment has increased.