Sometimes, a place is more than just a place. It's an idea or an identity that's synonymous with a place.
Silicon Valley is one such example. The term refers to a region south of San Francisco that's home to many of the world's biggest and most influential tech companies, including Apple (AAPL -2.26%), Alphabet (GOOG -0.07%) (GOOGL -0.10%), Meta Platforms (META -0.98%), and many others. When people talk about Silicon Valley, they are talking about both the region and the tech industry it represents.

What is Silicon Valley?
As a place, Silicon Valley refers to a part of the Santa Clara Valley that surrounds the South San Francisco Bay. The term is generally used to discuss the companies that occupy the valley and the tech industry as a whole, including a broad range of businesses within the tech sector. It also includes Stanford University.
In this sense, Silicon Valley resembles other places that also stand for industries, such as Hollywood in entertainment, Wall Street with the financial industry, Washington for the federal government, and Detroit for auto manufacturing.
Its name comes from silicon, which is the main component in semiconductors, and the valley the region occupies.
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Why Silicon Valley is such a success
With a long-established history as a hub in technology, Silicon Valley has a number of assets that make it hard to match.
The Valley continues to benefit from Stanford's top engineering school, and it also draws talent from the University of California, Berkeley. The location itself is also a valuable resource because of its proximity to tech infrastructure, sources of funding in venture capital, and a sizable talent pool.
The nature of the region also helps entrepreneurs and companies through networking and the ability to draw on expertise from a wide range of tech professionals. Its reputation helps it draw people from all over the world, helping to ensure that the next great tech companies will be based in Silicon Valley.