Earlier this month, Business Oregon announced the recipients of a second round of funding through the Oregon CHIPS (Creating Helpful Incentives to Product Semiconductors) Act, which, in 2023, dedicated $240 million to the expansion of the semiconductor industry in Oregon. Six companies were collectively awarded over $12 million to expand manufacturing and supply chain capacity in Oregon. One of the companies, GLX MICRO, a power electronics semiconductor packaging company is constructing new facilities in Oregon. Another, Kokusai Semiconductor Equipment Corporation, is a Japanese company continuing to expand its presence in Oregon with the construction of a new leading-edge semiconductor demonstration facility. These awards from Oregon CHIPS Round 2 are projected to support a total of $1.87 billion in project capital expenditures and 775 new jobs.
As the semiconductor industry continues to flourish in Oregon and throughout the United States under the Federal CHIPS Act, it is becoming even more apparent that this surge in employment opportunities is creating a pressing need for workforce housing. Oregon is already home to several major semiconductor companies, including Intel, MicroChip, HP, and numerous suppliers and startups. With the influx of federal funding, we can expect these companies to expand operations, creating thousands of highly skilled jobs. This boom won’t be limited to engineers and scientists; it will encompass a wide range of supporting roles in manufacturing, logistics, administration, and support services.
Where will these new workers live in our Silicon Forest? We are already at a housing production deficit of 140,000 units in Oregon– and this will only continue to grow every year unless we start to think differently about housing production. Employers across Oregon already struggle to hire and retain employees because of the high cost or unavailability of housing.
We need innovation – investments, new products and assembly methods, better public policy to cut red tape, and engaged job creators – to build the housing necessary to fuel our economy. It starts with local stakeholders and continues with the network of innovators the Missing Middle Housing Fund supports. We are so excited to showcase our state’s creative solutions to support this large federal investment. Opportunity is coming to Oregon. Let’s make sure we are equipped to welcome it. The future of the semiconductor industry in Oregon depends not just on technological advancements but also on our ability to create communities where workers can thrive.
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