PORTLAND, Ore. (KOIN) — As Hillsboro continues to make a name for itself as a business and residential growth leader, the city is calling on Oregon lawmakers to bolster its semiconductor industry.
In his January 31 State of the City address, Hillsboro Mayor Steve Callaway called on Governor Tina Kotek and state lawmakers to implement recommendations from the Oregon Semiconductor Competitiveness Taskforce, of which Callaway is a member.
“Because Hillsboro is the center of Oregon’s high-tech industry, it’s really important that we see action from the legislature on the semiconductor task force recommendations,” Callaway said.
According to Callaway, these recommendations include incentives, research and development tax credits and more industrial lands.
The task force, co-chaired by Oregon Senator Ron Wyden, former Governor Kate Brown and Portland General Electric CEO Maria Pope, aims to “analyze the state of the semiconductor industry in Oregon and how this important industry can continue to thrive and grow, and help produce prosperity and opportunity for a broad cross-section of Oregonians, in the years and decades ahead,” according to a press release from Rep. Suzanne Bonamici.
“Because it’s so important to our national security, it’s important to our national economy as well as our local and state economy, so we really plug the recommendations and encourage that the governor and our legislature to take action on those recommendations,” Callaway said — adding that the city has a 500-acres site ready to support more manufacturing.
Federal action has also been taken to boost the industry as 2022 saw the passage of the Creating Helpful Incentives to Produce Semiconductors and Science Act, to increase manufacturing in the U.S.
Callaway emphasized the needed urgency in the state to coincide with the CHIPS Act, “because otherwise, it’s going to be an opportunity that is lost for Oregon and an opportunity that is going to be seized by other states around our country.”
This comes after an October 2022 warning from Intel lobbyists to Oregon lawmakers that semiconductor and chip makers could be lured to other states with large incentive packages.
“If Oregon chooses not to compete with other states or if we do not offer competitive incentive packages, Oregon could miss out altogether,” the lobbyists said in the letter.
The letter also pointed to the economic impact Intel has had on the state, saying a recent study shows Intel’s total employment impact in the state is over 105,000 jobs — or 4% of statewide employment with $10 billion in labor income.
“In addition, Intel’s value add (GDP) to Oregon is over $19 billion,” the letter stated.
This warning comes after Intel, one of Oregon’s largest employers, announced over the summer the company is building a $100 billion campus in Ohio. Additionally, Micron, which has Pacific Northwest roots, announced plans for a $100 billion factory in New York.
Furthermore, Intel recently scrapped plans to build a $700 million “mega lab” in Hillsboro amid downsizing efforts.
Oregon House Speaker Dan Rayfield recently told KOIN 6 News that lawmakers plan to secure more federal dollars for semiconductor jobs in Oregon in the 2023 legislative session.
Rayfield said lawmakers need to move fast to “sweeten” the packages they’ll use to apply for CHIPS Act dollars.