All electricity is the movement of electrons which are subatomic particles that orbit the nucleus of an atom. Electrons occupy various energy levels called shells and how well an element enables the flow of electrons depends on how many electrons occupy its outer (valence) electron shell.

Circuits containing transistors are packaged into integrated circuit chips that allow encapsulating complex circuit designs (CPU, memory, I/O) for easier integration into electronic devices and machines.

Electrical power is measured in watts (W) and is calculated by multiplying the voltage (V) applied to a circuit by the resulting current (I) that flows in the circuit: P = IV. In addition to measuring production capacity, power also measures the rate of energy consumption and many loads are rated for their consumption capacity. For example, a 60W lightbulb utilizes 60W of energy to produce the equivalent of 60W of heat and light energy.

Semiconductors have valence shells that are exacly half full and can conduct electricity under some conditions but not others. This property makes them useful for the control of electrical current.

A transformer utilizes an inductor to increase or decrease the voltage in a circuit. AC flowing in a coil wrapped around an iron core magnetizes the core causing it to produce a magnetic field. This magnetic field generates a voltage in a nearby coil of wire and, depending on the number of turns in the wire of the primary (source) and secondary coils and their proximity, voltage is induced in the secondary coil.