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The computers of first generation used vacuum tubes as the basic components for memory and circuitry for CPU (Central Processing Unit). These tubes, like electric bulbs, produced a lot of heat and the installations used to fuse frequently.
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In this generation, transistors were used that were cheaper, consumed less power, more compact in size, more reliable and faster than the first generation machines made of vacuum tubes.
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The computers of third generation used Integrated Circuits (ICs) in place of transistors. A single IC has many transistors, resistors, and capacitors along with the associated circuitry. The IC was invented by Jack Kilby.
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These computers used the VLSI technology or the Very Large Scale Integrated (VLSI) circuits technology. Therefore they were also known as the microprocessors. Intel was the first company to develop a microprocessor.
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Computers of this generation are based on microelectronic technology with high computing power and parallel processing. This is the most recent and technologically advanced computer generation.