Oregon finalizes $136 million in funding for 3 semiconductor manufacturers

Gov. Tina Kotek’s office said Friday it has finalized contracts to provide $136 million in state funding for semiconductor manufacturers planning to expand their Oregon operations.

The initial recipients are Intel, Microchip Technology and HP Inc. The state announced the awards in September but didn’t have signed contracts until now.

A dozen other companies are continuing to negotiate for their share of $240 million in state money lawmakers approved last year. They’re also seeking millions more from the federal CHIPS Act that Congress approved in 2022.

“These projects will create new jobs in a variety of fields, promote workforce development in counties throughout the state, and will support these companies in obtaining additional resources from the federal government to compound the impact they’re making in Oregon,” Kotek said in a written statement.

Friday’s awards are grants and loans, contingent on the companies starting work on new projects by 2027 and meeting project objectives described in their Oregon funding applications. Companies that don’t meet those terms are responsible for immediately repaying the money.
Intel, the state’s largest corporate employer, is getting the biggest share — $115 million. Intel plans a multibillion-dollar expansion of its research campus in Hillsboro, including a fourth phase to its massive D1X factory. The company expects to add more than 2,000 jobs to the 22,000 it already employs in Oregon.

“We expect these incentives to influence suppliers and other companies to grow or expand capabilities in Oregon, creating new jobs, making our schools and universities stronger, and increasing the importance of the Silicon Forest to the global semiconductor industry,” Intel said in a statement Friday.

Microchip Technology will receive $11 million from Oregon for its ongoing, $800 million expansion of its Gresham chip factory. The Biden administration awarded $72 million in federal funding for the Oregon project Thursday.

Microchip has said it expects the expansion will add 300 jobs in Gresham. The company said Friday that it will work with the Portland Opportunities Industrialization Center and Rosemary Anderson High School to develop an apprenticeship program for students pursuing careers in advanced manufacturing.

Oregon also finalized a $9.5 million award to HP for its research and manufacturing site in Corvallis. The California company said it will use the state money to support its “G5,” fifth-generation silicon-based microfluidics work.

HP had said previously it hoped to win public funding to return manufacturing jobs to Oregon from overseas. The company declined to say Friday how many it intends to hire in Corvallis but welcomed the support from the Oregon CHIPS Act.

“We see CHIPS as an opportunity to modernize, advance and expand our Corvallis facility and G5 technology – for HP businesses, for new chips and packaging customers and for research partners,” HP said in a statement.

— Mike Rogoway | mrogoway@oregonian.com | 503-294-7699


Back To Home