LOC News
Semiconductor Package Update
In one of the more significant economic development initiatives for the 2023 session, the Oregon Legislature formed a Joint Committee on Semiconductors (JCS) to identify policies and investment opportunities in Oregon. The pandemic created many lessons to learn from, including the over-reliance on chip supply from international sources. With the passage of the CHIPS Act, the U.S. Government is taking strong action to secure our nation’s semiconductor supply chain with an allocation of $52 billion. If Oregon gets it right, the state could be positioned as a global leader.
Thus far, the JCS has held five hearings to build on the knowledge available and hear from the advocates and those who will oppose efforts to invest in Oregon’s semiconductor industry. A legislative package from the JCS is expected, and it will hopefully include additional investments in:
- Research & Development: R&D research is one of Oregon’s recognized strengths with the most advanced R&D facility in the world right in Hillsboro at Intel’s site.
- Talent: Access to premier talent and a robust, private sector-led innovation ecosystem separates Oregon from others.
- Land: To have success, Oregon will need to find buildable industrial land. Without land it will be difficult to find long-term success.
- Incentives: Most of the incentives available for businesses in Oregon rely heavily on local governments and reduced property taxes. To move forward, Oregon will need to be more active and identify funding that will help leverage the investments.
- Regulation: Oregon will need to evaluate the existing regulatory structure and look for opportunities that can create efficiency and streamline the citing process.
While there is no physical bill or defined package at this time, the LOC is recommending city leaders contact members of the JCS to support efforts that key off the five elements of the Oregon Semiconductor Competitive Task Force’s initial recommendations. Annual investments in the billions by Intel have proven to benefit the entire state, not just through the added income tax generated, but also through the additional businesses that move to Oregon. Additionally, Intel has made an ongoing commitment and reinvestment in the state’s university system, with three successful engineering schools between Oregon State, Portland State, and Oregon Tech. The company has further invested in community colleges, which have all grown programs that feed the high-tech footprint in Oregon.
Contact: Jim McCauley Legislative Director - jmccauley@orcities.org
Last Updated 2/3/23