When Intel Corp. CEO Pat Gelsinger announced March 20 that his company would invest $36 billion to expand and modernize its semiconductor manufacturing operations in Oregon, the news solidified the deal as the single largest corporate facility investment in state history.
But the project announcement also accomplished something else. By choosing Oregon for this historic, record-breaking investment deal, Intel cast a huge vote of confidence in the business climate of Oregon and showed other global companies that this jewel of the West Coast is not only alive and well; it is thriving.
Bolstered by $8.5 billion in federal funds from the CHIPS Act for semiconductor expansion in the U.S., Intel plans to invest upward of $100 billion by the end of this decade to vastly increase its chipmaking capacity at sites in Oregon, Arizona, New Mexico and Ohio.
Oregon hosts Intel’s largest site in Hillsboro, which also serves as the location of the company’s most innovative research and development. Intel employs 23,000 highly skilled workers at this site.
Oregon, however, is not relying solely on federal support to grow its chips sector. In January, the state awarded $115 million from the Oregon CHIPS Program to Intel to help subsidize the expansion project. The Oregon Chips Act was signed into law during the 2023 legislative session and set aside $240 million in state funds to support the chips industry.
Foresight like this is just one of the attributes attracting business investors to Oregon. Here are some others: lower-cost locations across the state; lack of a state sales tax; highly talented workforce; access to key Pacific Rim, Canadian and U.S. West Coast markets; infrastructure; energy and transportation.
Intel CEO Pat Gelsinger makes the announcement on March 20 that Intel will invest $36 billion into its semiconductor manufacturing operations in Oregon.
Photo courtesy of Intel Corp.
The Proof is in the Performance
- Consider these rankings courtesy of U.S. News:
- Oregon ranks third in renewable energy usage.
- Oregon ranks second in infrastructure.
- Oregon ranks second in transportation.
Speaking of transportation, Oregon offers a variety of ways to expedite commerce. Oregon boasts seven commercial airports, two seaports and 2,400 miles of freight railroads. Plus, Oregon is the only state on the West Coast to rank in the top 10 nationally for road quality.
On the workforce front, Oregon offers one of the best environments for innovation, research and development. The state ranks first in university licensing of new technologies; third in top public colleges and universities (Oregon Institute of Technology); fourth in patents and fifth in university startups.
For businesses looking to mind their bottom line, many key business costs are lower in Oregon. For example, the state has the second lowest natural gas rates among the eight Western states and the third lowest rates for industrial electricity.
Oregon also offers a highly balanced economy, and the folks at Business Oregon work to keep it that way. Target industry sectors for growth in Oregon include advanced manufacturing; high-tech; forestry and wood products; food and beverage; outdoor gear and apparel; bioscience and business services.
How Business Oregon Helps
Finally, when you are ready to expand, Business Oregon offers a variety of services to assist your company. For example, Business Oregon will help you:
- Identify potential Oregon vendors, distributors and customers.
- Discuss your needs with state and local governments and private utilities.
- Identify business incentives, financial resources and workforce programs that may aid your company in its expansion.
- Help you find the right site for your business. Oregon offers over 1,500 sites that are ready for business development in the official state buildings and sites database.
For more information, contact a Business Oregon recruitment officer:
- Melissa Murphy: 503-983-8857
- Aaron Jensen: 971-707-0667
