PORTLAND, Ore. — Oregon's premier chip manufacturer, Intel, announced plans Wednesday to invest $36 billion to expand and innovate its chipmaking plants in Hillsboro.
The news comes on the back of the Biden administration awarding Intel up to $8.5 billion in CHIPS and Science Act funding, a $280 billion package signed into law in 2022, which is aimed at building up the U.S. semiconductor industry.
“Today’s announcement from Intel and the U.S. Department of Commerce that billions in CHIPS funding will support Intel’s own $36 billion investment in its Oregon research and manufacturing hub will set the stage for years of growth and bolster Oregon’s competitive edge,” said Sophorn Cheang, director of Business Oregon.
Nearly half of Intel’s total U.S. employment is in Oregon. In 2022, Intel spent more than $4 billion with more than 500 suppliers across Oregon, according to a news release. The added investment would support several thousand manufacturing and construction jobs.
“We welcome the exciting news that Intel has been awarded this vital investment. This means thousands of local union construction jobs, truly building the future," said Kevin Lux of the Columbia Pacific Building and Construction Trades Council. "From apprenticeship to the journey-level to beyond, these are life-changing careers where the opportunities are endless. We thank Intel Oregon for their investments here and making Oregon a better place to work, live and thrive.”
Through an agreement with the Department of Commerce, Intel expects its investments in the U.S. to exceed $100 billion over the next five years as it expands its facilities in Oregon, Arizona, New Mexico and Ohio. Coupled with the CHIPS Act funding, Intel's investment marks one of the largest investments ever announced in U.S. semiconductor manufacturing, according to the news release.
Intel's investment is estimated to create over 10,000 manufacturing jobs and nearly 20,000 construction jobs.
“Today is a defining moment for the U.S. and Intel as we work to power the next great chapter of American semiconductor manufacturing innovation,” said Intel CEO Pat Gelsinger.
The agreement, a non-binding preliminary memorandum of terms (PMT), includes approximately $50 million in dedicated funding to develop Intel's semiconductor and construction workforce, along with requirements for Intel to provide affordable, accessible childcare for its workers across its facilities.
The funding will also go toward the construction of four new Intel chip manufacturing facilities in Arizona and Ohio and modernizing two of its manufacturing facilities in New Mexico.
Intel's total funding amount through the CHIPS Act is contingent on Intel's achievement of certain milestones that have not been announced yet.
Senator Maria Cantwell championed the CHIPS and Science Act. Cantwell said the funding is a "huge investment" in the Pacific Northwest's Silicon Forest and supposed jobs in Southwest Washington.
"Leveraging private sector investments to boost and secure our domestic chip supply chain are exactly the kind of investments the CHIPS and Science Act was designed to spur in order to secure America’s national security and economic prosperity," Cantwell said.
Sen. Ron Wyden echoed her comment.
"The continuous federal investment in the Silicon Forest and its central role in world-class innovation means a stronger economy in Washington County and significant statewide ripple effects for employment opportunities that benefit Oregonians," Wyden said in a statement.