I highly recommend the book called “But how does it know?” it is a great introduction on the topic which quite honestly is a bit too elaborate for an ELI5.
On a very basic level a transistor does not know. It is how the transistors are arranged that lets it “know”. Its applying simple rules to them on how they act and combining these small parts into more and more complex parts, which is of course extremly oversimplified to fit ELI5.
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