Analog Devices Inc.’s ongoing upgrade of its semiconductor factory near Beaverton will double production capacity and cost $1 billion.

“We are making significant investments to modernize our existing manufacturing space and retool equipment to increase productivity, as well as expand our overall facilities infrastructure with 25,000 square feet of additional cleanroom space,” said Fred Bailey, ADI’s vice president for factory operations.

Massachusetts-based ADI began expanding Oregon capacity in 2021, the year after acquiring the facility as part of its $21 billion purchase of rival Maxim Integrated Products.

ADI makes specialized chips for automotive, industrial, communications and consumer products — a market segment that has held up well despite a slump in demand for chips used in PCs and data centers. ADI reported $12 billion in sales for the fiscal year that ended in October, up 64% from the prior year.

The Oregon factory, on the edge of the Tektronix campus, is ADI’s largest and employs about 800. The company also has a factory in Camas that was formerly owned by Linear Technology. ADI said its Oregon expansion includes features to reduce climate emissions and water use.

ADI is converting storage space inside the Oregon factory into new manufacturing space. It hadn’t publicly announced how much the work would cost, but the Semiconductor Industry Association included it in a recent tally of major chip manufacturing projects in the U.S. That report said the expansion will add 280 jobs.

Chipmakers are building new factories across the country in anticipation of $52 billion in CHIPS Act subsidies Congress approved for the semiconductor industry last year.

ADI’s Oregon expansion predates that but the company told investors last year that it hopes for funding from governments in the U.S. and Europe to support future factory expansions. The company also outsources some production to other manufacturers.

Semiconductors are among Oregon’s largest industries, accounting for nearly half the state’s exports. Lawmakers are preparing a package of bills in their new legislative session aimed at attracting more factories and a share of the federal CHIPS Act money.