Five members of Oregon’s congressional delegation sent a letter to top Biden administration officials Thursday, asking that the officials return to the state for a fresh look at Oregon’s semiconductor manufacturing industry.
The letter invites Commerce Secretary Gina Raimondo and Laurie Locascio, director of the National Institute of Standards and Technology, to come to Oregon at a date of their choosing. The letter suggests they visit to celebrate the second anniversary of the federal CHIPS Act “and share our vision for the future of Oregon’s semiconductor industry.”
The letter’s unwritten subtext is that Oregon is competing with other states for one of three National Semiconductor Technology Centers, to be awarded as soon as this fall. State officials and Oregon business leaders are lobbying the Biden administration to put one of those research labs in Hillsboro.
Oregon technology employers have already secured billions of dollars through the CHIPS Act, which aims to revive domestic semiconductor manufacturing through federal subsidies.
Intel has received $8.5 billion in direct funding to build or expand factories in Oregon, Arizona and Ohio. The Biden administration awarded Microchip Technology $72 million to expand its Gresham factory.
“We invite you to return to Oregon to celebrate the accomplishments we’ve made because of the CHIPS and Science Act and its historic investments in Oregon’s thriving semiconductor industry,” the delegation wrote.
It has, actually, been a very difficult year for Oregon chip businesses.
The semiconductor industry is famously cyclical, and the federal funds began arriving amid a steep downturn.
Within days of winning its federal award, Microchip announced it would put its Gresham workers on intermittent, two-week furloughs at various times this year. Its sales were down 45% last quarter compared to a year earlier.
Workers at Analog Devices’ factory in Washington County factory are protesting for higher wages, asserting that they want a share of whatever that company receives from the CHIPS Act. (Analog Devices is applying for federal dollars to help fund its Oregon expansion but hasn’t received an award yet.)
And last week, Intel announced the biggest job cuts in its history. It set a target of eliminating 15,000 jobs by the middle of November. Intel said it needs to cut operating costs by $10 billion so it can afford to keep investing in new technologies and factories.
Semiconductor manufacturing remains one of Oregon’s core industries, despite its recent strains, and in their letter the state’s leaders appear eager to show it off – and, evidently, build support for additional federal investment.
Raimondo, the Commerce secretary, visited Oregon last year, in large part to hear from semiconductor industry leaders. They took the opportunity to pitch the state to host the research center. Now, members of the state’s congressional delegation want her back. Senators Ron Wyden and Jeff Merkley signed the letter asking her to return, joined by House members Suzanne Bonamici, Andrea Salinas and Val Hoyle. All are Democrats.
“The semiconductor industry, educational institutions, and state and local governments have embodied the Oregon way in their collaboration and urgency to grow our domestic semiconductor industry and develop the workforce to drive the field,” the congress members wrote. “We know there is no comparison to seeing this booming industry in person.”
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