Intel is preparing for a significant expansion of its semiconductor manufacturing operations in Hillsboro, according to documents filed with state air quality regulators. While specific details regarding the scope, cost, and timeline of the project remain unknown, Intel’s application indicates its intention to gain approval for “additional fab space and associated emissions” at its main Washington County campus, as well as prepare for additional manufacturing at an older campus in Aloha. This move comes as Oregon aims to bolster its semiconductor industry and maintain its position as home to some of Intel’s most advanced research and development projects.
Governor Tina Kotek has expressed support for the expansion and plans to grant Intel $90 million to further facilitate the company’s efforts. The award is expected to result in a significant investment in Oregon’s future, create numerous jobs in the construction, manufacturing, and research sectors, and strengthen the state’s semiconductor industry. The specifics of Intel’s application are not disclosed due to “proprietary information and trade secrets.”
In line with Intel’s proposal, the expansion will involve modifications to existing portions of the Hillsboro campus, including advancements in technology manufacturing and additional manufacturing support operations. The Aloha campus, which is Intel’s oldest facility in Oregon, will also be utilized for manufacturing activities. Previous expansions at Intel’s Gordon Moore Park at Ronler Acres have incurred significant costs for the company.
To encourage semiconductor companies to expand in Oregon, the state allocated $260 million, alongside new tax credits for increased activity. This funding aims to stimulate major developments and align with the federal CHIPS and Science Act, which provides additional financial assistance for such projects. While Oregon is home to a sizable semiconductor workforce and microprocessors are the state’s leading export, other states such as Arizona, Ohio, Texas, and New York have attracted more recent attention for semiconductor investments.
Intel is not the only company seeking state funding for expansion in Oregon. The governor’s office has received 16 applications from the Oregon CHIPS Fund, totaling over $500 million in requests. However, Intel is the only company thus far that meets the threshold for a payment exceeding $50 million. The state law requires a minimum 30-day notice if Kotek plans to award any company more than $50 million from the fund.