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They used vacuum tubes. A vacuum tube consists of a glass bulb and wire. The wire is used to carry data in the form of electronic signals. First generation computers were very large, expensive, and required huge amounts of electricity. For example: the ENIAC (Electronic Numerical Integrator and Calculator).
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They used transitors instead of vacuum tubes. The transitors are more smaller than vacuum tubes, so the computers became more small and cheaper.
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They start using integrated circuits. Integrated circuits (IC) is as small as a transitor but it can work as fast as thousands of them. They made computers faster, cheaper and smaller.
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They use microprocessors. A microprocessor consists of a small silicon chip on which thousands of circuits are placed. They are smaller, portable, and cheaper. They use less electricity and produce less heat.
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They are the most advanced computers. Scientists are now trying to develop fifth-generation computers in a way that they can think on their own. This called Artificial Intelligence (AI). Robots work on this technology.