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First finalised Oregon CHIPS contracts

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HP, Intel and Microchip are first contracts finalised.

Oregon Governor Tina Kotek has announced that HP, Intel and Microchip are the first three companies to have their Oregon CHIPS Act contracts finalized. The funding, which will begin flowing to the projects this month, supports the expansion and modernization of semiconductor manufacturing and research at these companies.

“Oregon’s leadership in semiconductor research and manufacturing is a catalyst for our economy,” Governor Kotek said. “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.”

Recently, the Biden-Harris Administration announced a $72 million award to Microchip’s Oregon location to aid their semiconductor manufacturing and research work in Oregon. In addition to the awards, Microchip has committed to a partnership with Portland Opportunities Industrialization Center + Rosemary Anderson High School (POIC + RAHS) for student internships and helping them develop an advanced manufacturing apprenticeship program. Their commitment to POIC + RAHS will allow them to hire a staff person to lead that initiative.

"The new partnership announced today between Microchip and POIC and RAHS is the type of collaboration between industry and community-based organizations that we need to truly bridge talent and opportunity,” State Representative Janelle Bynum (D-Clackamas) said. “This sets a new industry standard for labor development investment, which is essential for building the next generation of Oregon’s semiconductor workforce."

HP, with facilities in Benton County, will be receiving $9.5 million. Microchip, located in east Multnomah County, will be receiving $11 million. Intel, with its largest global campus in Washington County, will be receiving $115 million. These awards serve to move the proposed projects forward and make them even more competitive to secure federal funding from the U.S. Department of Commerce.

The Oregon CHIPS Act, signed into law during the 2023 legislative session, dedicated $190 million to develop a grant and loan program to support semiconductor businesses looking to expand in Oregon, providing the opportunity for significant federal funding support provided by the CHIPS and Science Act that Congress passed and President Biden signed in August 2022. It also funds $10 million to help communities prepare land for manufacturing sites and $10 million for a University Innovation Research fund that will help public universities secure federal research grants. The Governor’s Office, in partnership with Business Oregon, has been working to distribute the funding to projects.

An additional $50 million for the contracts was set aside in a Special Purpose Appropriation (SPA) during the 2023 legislative session and is expected to be formally allocated during the 2024 short session, which starts in February. The full amount of the awards will be contingent on the release of the SPA by the legislature in the 2024 session.

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