Editorial: Bring chip manufacturing to Oregon and the U.S.
Published 5:00 am Tuesday, June 18, 2024
- Workers walk on a skybridge to and from a large Intel facility in Hillsboro in 2023. The federal government announced on Tuesday that Intel would get $7.9 billion in federal subsidies.
Oregon legislators took bold action to ensure the state could build on the $50 billion plus from the federal Chips Act. Gov. Tina Kotek announced this month another $36 million in investments from the Oregon Chips Act to the semiconductor industry.
The $36 million goes to Lam Research for research and development with $22 million; ADI is expanding its facility in Beaverton with $12 million and Siltronic is modernizing and expanding in Portland.
It’s another important step in luring more of the industry to Oregon and the United States.
Semiconductor manufacturing is Oregon’s largest manufacturing sector in jobs. It’s the state’s largest sector in exports. It’s the largest sector in the contribution for gross domestic product.
Only about 12% of the world’s production of the chips so vital in almost every modern electronic device are produced in the United States. That’s down from the U.S. producing 40% of chips in 1990.
The most advanced chips are designed in the United States, but the most advanced chips are not made here. The bulk of them are made in Taiwan. A disruption of that supply would put the country in a world of hurt. It also means the excellent jobs are somewhere else.
This was a cause that united Democrats and Republicans in Congress and the Oregon Legislature. It’s not clear how much chip manufacturing the investments will bring back to the United States. The Biden Administration’s goal is 20% by 2030. The new state investments help inch our way there.