That's ruby studnite...they used xacto knives to cut out the design and then used optics to step-down the images onto 'masks' which were used to project the image onto wafers...that's just one layer of a chip which may have 18 or more layers. It's all done by computers today and the images electronically transferred to 'steppers' or electron beam machines.
I was out at the end point....installing computers in customer sites....but it is all very fascinating....and the technology seems to be speeding up....