City (pop., 2000: 894,943), west-central California, U.S. Located southeast of San Francisco, San Jose was the first civic settlement in California. Founded in 1777 as a farming community, it became a Spanish military supply base and was the state's first capital (1849–52). In 1850 it became the first chartered city in California. It was a trade depot for the California gold fields. The railroad from San Francisco improved trade connections for the produce of nearby farms. San Jose is a processing and distribution centre for a rich agricultural area producing fruit and wine. It is part of Silicon Valley, and its industries include the manufacture of electronic, computer, and aerospace components, auto parts, and consumer goods.