In 1955, Beckman was contacted by William Shockley. Shockley, who had been one of Beckman's students at Caltech, led Bell Labs research program into semiconductor technology. Semiconductors were, in some ways, similar to cermets. Shockley wanted to create a new company, and asked Beckman to serve on the board. After considerable discussion, Beckman became more closely involved: he and Shockley signed a letter of intent to create the Shockley Semiconductor Laboratory as a subsidiary of Beckman Instruments, under William Shockley's direction. The new group would specialize in semiconductors, beginning with the automated production of diffused-base transistors.