Yesterday, the Joint Committee on Semiconductors passed on a bipartisan vote the OR CHIPS Bill (Senate Bill 4), the Legislature’s first step toward securing the future of Oregon’s semiconductor economy. The bill will empower Oregon businesses to apply for a share of $52 billion in federal money from the CHIPS and Science Act. This money represents a once-in-a-generation opportunity to solidify Oregon’s place as a global leader in semiconductor development and manufacturing.
“This is a crucial first step towards securing Oregon’s semiconductor future. This legislation will create good-paying, long-term jobs in every corner of our state, keep Oregon’s economy stable and competitive in the 21st Century, and protect America’s critical semiconductor supply chain,” said Senator Janeen Sollman (D-Hillsboro).
The bill allocates $190 million to the Oregon CHIPS Fund to be distributed via grants and loans for:
- Development and acquisition of a site for semiconductor manufacturing
- Semiconductor research and development
- Workforce development, including internships and apprenticeships
An additional $10 million is dedicated to the newly established Industrial Lands Loan Fund for financial assistance to local governments to prepare sites for semiconductor industrial development. The University Innovation Research Fund will also receive $10 million for public universities to leverage federal research grants.
“Oregon is a world class hub for semiconductors, and with SB 4, we are making our first move to draw in federal CHIPS Dollars and solidify Oregon’s status,” said Rep. Janelle Bynum (D-Clackamas). “I am so proud of the work of this committee.”
The bill requires that projects funded by OR CHIPS commit to creating permanent, full-time jobs and have a net positive impact on local and state revenues. Semiconductor research and manufacturing jobs are well-paying, stable careers that often do not require four-year degrees. An estimated 26,000 jobs would be created by a new semiconductor manufacturing facility in Oregon and could generate billions in state GDP.
“This is a great first step, but phase two begins now. Oregon has work left to do to attract business and invest in our future shared prosperity,” said Representative Kim Wallan (R-Medford). “I look forward to continuing to work with this powerhouse committee.”
“OR CHIPS is a game changer for Oregon. It will open up billions in funding for local businesses and innovators, create thousands of family-wage jobs, and put Oregon families in every corner of this state on the path to prosperity,” said Senate Majority Leader Kate Lieber (D-Beaverton and Southwest Portland). “There is still more work to be done, but I applaud the urgency and effectiveness of this committee in passing such a consequential piece of legislation this early in session.”
The bill also establishes a balanced land use solution that respects Oregon’s 50-year-old land use system while allowing flexibility so the state can attract multibillion-dollar manufacturing centers. Under Senate Bill 4, the governor will have the authority to site a maximum of eight new areas outside of current urban growth boundaries.
The authority to issue an executive order is limited by clear guardrails within the bill. Land identified to be brought into the urban growth boundary must be contiguous to the current urban growth boundary and cannot extend more than three miles from the current boundary.
Before issuing an executive order, the governor must:
- Conduct one public meeting near the site,
- Accept public comments for at least 20 days following the public meeting, and
- Determine that there is not an existing site within the urban growth boundary that meets the project’s needs
Any land brought into the urban growth boundary must be used for semiconductor manufacturing purposes. If a project does not receive federal money through the federal CHIPS Act, the governor can then remove the land from the urban growth boundary.
Any legal challenges must be initiated within 60 days and will be directed to the Oregon Supreme Court to ensure due process is respected and Oregon does not miss out on any manufacturing opportunities due to a protracted legal process.
Senate Bill 4 now moves to the Joint Ways and Means Committee for consideration.
