PORTLAND, Ore. — The real impact of the $52 billion federal CHIPS and Science Act probably isn't being felt yet across the country, let alone in Oregon, but recent events suggest that its proximity is already spurring an expansion in the Beaver State's high-tech manufacturing sector.
President Joe Biden signed the CHIPS Act into law roughly a year ago. The concept was to bring semiconductor manufacturing back to the U.S. after a protracted period of outsourcing.
"You know, the CHIPS and Science Act supercharges our effort to make semiconductors here in America," Biden said. "Those tiny computer chips, smaller than a fingertip, that are the building blocks for a modern economy, powering everything from smartphones to dishwashers to automobiles."
The President was fired up about getting such a landmark deal through Congress; with bipartisan support, no less. And it's been a huge deal for Oregon as well, since companies like Intel, Analog Devices and Microchip Technology already have a presence here.
To break it down a bit, the CHIPS Act makes available a huge pool of money for expansion in semiconductor manufacturing. Companies can apply for some of that funding in order to bankroll their domestic expansion.
The act also includes about $24 billion in tax breaks, where companies can apply to get back roughly 25% of what they spend on expansion.
Then there's the contribution that Oregon is making. The legislature set aside about $500 million in grants, loans and incentives in order to sweeten the pot for semiconductor companies to do their expansion here. This week the state also awarded Intel $90 million, although it's unclear precisely what it will be used for.
All this explains why U.S. Senator Ron Wyden held a news conference with other politicians on Wednesday to celebrate the one-year anniversary of the CHIPS Act. He believes that it has already spurred growth among the semiconductor companies in our state.
"Semiconductors have had a banner week in Oregon," Wyden said. "If you add up what's happened in the last week alone — the announcement at Intel, major new capital investment in Hillsboro, potential for thousands of good paying jobs. Last week, Analog Devices provided the latest example of our state's pivotal role, announcing a billion-dollar expansion for the Beaverton campus. Big win for the metro area."
Intel won't exactly say what its expansion plans are, but an air quality permit application shows that the company expects to double the amount of greenhouse gases from its factories in Aloha and at what used to be called Ronler Acres in Hillsboro — so it's likely to be big. Really big.
Analog Devices announced last week that it would spend $1 billion to expand its semiconductor wafer fabrication in Beaverton. The company currently has about 950 employees in Oregon and said that the new investment will mean hundreds more jobs.
The company's vice president of fab operations, Fred Bailey, said that the CHIPS Act helped a great deal.
"I want to talk a little bit about the CHIPS Act ... You know, what's been done on this really enabled factories, companies like Analog Devices, to make these investments for the industry, for the community," Bailey said. "And I think if we look beyond the CHIPS and Science Act, the tax credits that come along with this .... I want to really pass along the thanks from all of Analog Devices and semiconductors, this is a huge part of this."
Despite these big moves that have happened within the last week, it's not entirely clear that any of the CHIPS Act funding has been earmarked for Oregon, or for any other states. The Story's Pat Dooris asked Sen. Wyden about that on Wednesday.
"There's been a lot done by the state as a result of the CHIPS Act, trying to position ourselves for the future. But what have we gotten from the federal government and from the CHIPS Act. Have we gotten a single dollar out of that yet?" Dooris asked.
"Pat, I'll let the companies speak for themselves, but you just heard from Analog, for example, how important those tax credits are, the $24 billion tax credit package that I put together," Wyden responded, pivoting from the question.
Wyden's office did provide a reminder that the University of Oregon, Oregon State University and Portland State University each received a million dollars for research grants as part of the CHIPS Act. But the big money has not arrived yet, and it's no sure thing that Oregon will be a winner on that front.
Dooris emailed the U.S. Department of Commerce to ask when more information on that funding will be released, but they did not respond. However, the Biden administration has said it plans to start announcing winners this fall.