Recently, the Joint Committee on Ways and Means advanced the Oregon CHIPS Bill (Senate Bill 4) to the floor of the Senate on a bipartisan vote. The Senate will consider the priority legislation this week.
The $210 million bill commits $190 million in state funds to support applications by Oregon businesses for $52 billion from the federal CHIPS and Science Act, which Congress enacted to boost domestic manufacturing of semiconductors. An additional $10 million will go toward assisting 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.
Legislative leaders worked with urgency to move Senate Bill 4 early in the legislative session to ensure businesses will be able to use the grants and loans from the bill to apply for the first tranche of federal money. The U.S. Department of Commerce will soon begin accepting applications for those funds. Oregon is one of only a handful of state legislatures passing legislation to leverage federal CHIPS Act dollars.
“We have a once-in-a-generation opportunity to secure Oregon’s place as a global leader in the semiconductor industry,” said Senator Janeen Sollman, co-chief sponsor of Senate Bill 4. “Legislators from both sides of the aisle came together to take decisive action with this legislation. I’m honored to have led on Senate Bill 4 with my colleagues.”
The goal is to help businesses receive money from the federal government, build in Oregon, and create good paying careers throughout the state. This will also generate revenue for critical state programs.
According to a recent study, the addition of one semiconductor fabrication plant in Oregon could generate around 26,000 new jobs and $2.8 billion in net revenue over 20 years.
“SB 4 moving to the Senate floor is a pivotal moment as Oregon makes its move to draw in federal CHIPS dollars,” said Representative Janelle Bynum (D-Clackamas), co-chief sponsor of Senate Bill 4. “Bolstering our world class semiconductor industry will create economic benefits across the state for generations to come.”
Chips are used in everything from electric toothbrushes, to cars, to missile defense systems. The semiconductor was invented in the United States, but domestic manufacturing has declined in recent decades. Today, most semiconductor production is located in South Korea and Taiwan.
“The Oregon CHIPS Bill is a vital economic booster for Oregon and is crucial for our nation’s security. Oregon is one of the top three producers of semiconductors in the world, next to Taiwan and South Korea. Given the continued unrest on an international scale, we must continue to bolster this industry within our state. I am thrilled to see this legislation pass out of committee and look forward to seeing it through to the finish line,” said Representative Kim Wallan (R-Medford), co-chief sponsor of Senate Bill 4.
Senate Bill 4 also grants limited authority to the Governor to bring certain plots of land into the urban growth boundary for the purpose of semiconductor or advanced manufacturing. After a transparent public process and examination of land currently available, the Governor would be able to designate up to eight sites, two of more than 500 acres in size, six less than 500 acres. Cutting-edge semiconductor fabrication plants — or “fabs” — are up to 900 acres in size.
“It is clear that the strength of Oregon’s semiconductor industry is essential not only for our advanced manufacturing workforce, but also for economic and national security,” said Senator Tim Knopp (R-Bend), co-chief sponsor of Senate Bill 4. “SB 4 is only the first step we are taking to capitalize on Oregon’s opportunity to receive CHIPS Act funding. I look forward to working on critical elements such as research and development tax credits and expanding enterprise zones as the Session continues.”
