FILE: A photo from November 2021 shows employees in cleanroom "bunny suits" working at an Intel factory in Hillsboro, Oregon.
Walden Kirsch / Courtesy of Intel Corporation
Federal leaders have passed on choosing Oregon for a major computer chip research center for a third time, despite repeated efforts by top officials in the state.
On Monday, Arizona was chosen as the site of the third and final national semiconductor research and development center. It comes after Gov. Tina Kotek urged the Biden Administration to build one of the centers in the Hillsboro area, which could have resulted in billions in federal funding flowing to the state’s semiconductor industry.
Instead, New York, California and Arizona will host the new centers meant to advance domestic development of the chips vital to modern day technology.
“A strong research and development ecosystem is essential to ensuring the United States remains at the forefront of semiconductor innovation,” U.S. Secretary of Commerce Gina Raimondo said in a written statement. ”Arizona has long been a hub for technological progress, and this new facility will strengthen our domestic supply chain, drive advanced manufacturing breakthroughs, and secure America’s leadership in this critical industry.”
Oregon leaders had hoped the state’s reputation as a semiconductor research powerhouse would help attract one of the federal research centers.
The semiconductor industry employs more than 30,000 Oregonians and state economists expect that number to increase over the next decade. Many educational institutions in Oregon have partnered with the industry to provide specialized programs to boost the talent pipeline and fast track some certifications. And state lawmakers have signaled support of the industry through a state version of the CHIPS act.
“We have all the ingredients to be successful: world-class talent, leading edge semiconductor companies, strong partnerships with our higher education institutions, and the foundational support,” Gov. Kotek said in April.
At the time she made it clear she was sending a message to Washington DC that Oregon should be home to one of the new centers. Kotek indicated she was willing to allocate some land previously set aside for farming to help attract the center. The governor abandoned the controversial move, as time was running out to use that authority, and after two other states landed centers over Oregon.
Even though Oregon didn’t land a federal research center, there is still federal money flowing to Hillsboro. Major chipmaker Intel is headquartered in California, but company leaders consider Oregon the heart of research and development. Despite a rough 2024 with major layoffs and a change in top leadership, Intel was awarded $1.8 billion in federal funding to upgrade its Hillsboro facilities.