Microcontrollers are single integrated circuits that contain a processor core, memory, and programmable input/output peripherals. They are designed to control systems automatically based on programmed applications. The first microcontroller was the TMS 1000 in 1974. Microcontrollers contain basic hardware components like buses to transfer data, volatile and non-volatile memory, input/output ports, an oscillator for timing signals, and timers/counters. They work by executing programmed instructions in sequence from memory at a rapid pace controlled by the oscillator. Microcontrollers are widely used to control devices in applications like mobile phones, automobiles, appliances, security systems, and more.