The semiconductor company Microchip has secured $72 million in federal funding to expand its computer chip manufacturing capacity in Gresham, Oregon. This is just the beginning of the potential influx of federal dollars into Oregon’s chip-making industry, as semiconductor firms in the state are eligible for a share of the $50 billion allocated through the federal CHIPS Act. In addition to federal funding, Oregon is also providing approximately $200 million in grants to businesses like Intel and HP for expanding or constructing new facilities.
While these financial injections are not expected to create a semiconductor hub from scratch, they will undoubtedly facilitate the realization of proposed projects and bolster expansion efforts in Oregon’s well-established semiconductor industry. Currently, the industry employs around 30,000 Oregonians, and state economists predict that the number of jobs will increase by approximately 3,000 over the next eight years. The infusion of funds will incentivize companies to proceed with their expansion plans in Oregon, further fueling job growth.
Mike Wilkerson, the director of data analytics at Portland-based consulting firm ECO Northwest, highlights the significance of the federal and state support in expediting the decision-making process for companies. The additional financial incentives make investing in or expediting the timeline for semiconductor manufacturing facilities more appealing. Wilkerson emphasizes the strength of Oregon as a candidate for federal funding due to its skilled workforce, state support, and the presence of renowned semiconductor companies.
The semiconductor industry is critical to the functioning of our technology, encompassing various occupations involved in research, development, design, and manufacture of computer chips. Oregon stands out as a hub for the industry, with diverse companies spanning the full range of semiconductor firms. Moreover, it boasts the highest average wage in the state, underscoring the industry’s importance.
The primary beneficiaries of the federal and state funding are the companies committed to semiconductor manufacturing. These incentives aim to encourage businesses to keep their production within the United States or relocate it here. Furthermore, Oregon’s allure extends beyond manufacturing, as it also attracts companies engaged in semiconductor research, development, and design. The state’s emphasis on training workers in semiconductor-related skills through initiatives in community colleges and universities further solidifies its competitive advantage.
As the U.S. Commerce Department gradually releases funding through the CHIPS Act, it is anticipated that Oregon will receive a significant portion of the remaining billions. Oregon’s workforce, industry ecosystem, and various incentives make it an ideal candidate for these specialized funds. With continued financial support and strategic investments, Oregon’s chip-making industry is poised for substantial growth, bolstering the state’s economic prosperity and securing its position as a leader in the semiconductor sector.
FAQ:
Q: What is the semiconductor company Microchip receiving federal funding for?
A: Microchip is receiving $72 million in federal funding to expand its computer chip manufacturing capacity in Gresham, Oregon.
Q: Why is Oregon’s chip-making industry expected to receive more federal funding?
A: Semiconductor firms in Oregon are eligible for a share of the $50 billion allocated through the federal CHIPS Act.
Q: How much funding is Oregon providing to businesses like Intel and HP?
A: Oregon is providing approximately $200 million in grants to businesses like Intel and HP for expanding or constructing new facilities.
Q: How many jobs does the semiconductor industry currently employ in Oregon?
A: The semiconductor industry currently employs around 30,000 Oregonians.
Q: How much job growth is predicted in the industry over the next eight years?
A: State economists predict that the number of jobs will increase by approximately 3,000 over the next eight years.
Q: Why is Oregon a strong candidate for federal funding in the semiconductor industry?
A: Oregon is seen as a strong candidate for federal funding due to its skilled workforce, state support, and the presence of renowned semiconductor companies.
Q: What occupations are involved in the semiconductor industry?
A: The semiconductor industry encompasses various occupations involved in research, development, design, and manufacture of computer chips.
Q: What is the aim of the federal and state funding for semiconductor manufacturing?
A: The aim of the funding is to encourage businesses to keep their production within the United States or relocate it here.
Q: How does Oregon attract semiconductor companies beyond manufacturing?
A: Oregon also attracts companies engaged in semiconductor research, development, and design. The state’s emphasis on training workers in semiconductor-related skills further solidifies its competitive advantage.
Q: What does the future of Oregon’s chip-making industry look like with continued financial support?
A: With continued financial support and strategic investments, Oregon’s chip-making industry is poised for substantial growth, bolstering the state’s economic prosperity and securing its position as a leader in the semiconductor sector.
Key Terms/Jargon:
– Microchip: A semiconductor company receiving federal funding for expanding its computer chip manufacturing capacity.
– Semiconductor: A material that is neither a good conductor of electricity nor a good insulator but has properties that can be manipulated for use in electronic devices.
– Federal CHIPS Act: A federal act that allocates $50 billion to support the semiconductor industry.
– Intel: A multinational corporation that designs and manufactures semiconductor chips and other technology products.
– HP: Short for Hewlett-Packard, a multinational IT company that develops and provides a wide range of hardware and software products.
– Data analytics: The process of examining, cleansing, transforming, and modeling data to discover useful information, draw conclusions, and support decision-making.
– Workforce: The total number of people engaged in a particular occupation or employed by a particular company or organization.
Suggested Related Links:
– Microchip
– Intel
– HP
– ECO Northwest
– U.S. Commerce Department
The source of the article is from the blog agogs.sk