Oregon Governor Signs CHIPS Bill to Help Boost Industrial Developments

Tina Kotek speaks during Day 1 of the Democratic National Convention at the Wells Fargo Center in Philadelphia, Penn., on July 25, 2016. (ROBYN BECK/AFP via Getty Images)

Gov. Tina Kotek signed the Oregon CHIPS Act into law on April 13 after the bill was approved by state legislators, which would allow the governor to authorize funds in rural regions of Oregon for industrial developments.

“This bill is an absolutely essential tool for leading a coordinated effort with the private sector to ensure we can compete for federal funds to expand advanced manufacturing in Oregon,” Kotek said in a statement. “We are poised to lay the foundation for the next generation of innovation and production of semiconductors.”

The CHIPS ACT will provide $190 million to develop a grant and loan program to support semiconductor businesses looking to expand in Oregon, according to the governor’s press release.

Production operator John White checks a panel at the SolarWorld solar panel factory in Hillsboro, Oregon, U.S., Jan. 15, 2018. (Reuters/Natalie Behring)

Kotek expressed her gratitude toward the state Legislature for helping to pass the bill on Twitter.

“Signed, sealed, and soon to be delivered: The Oregon CHIPS Act is now official! Excited to see our state take the lead in the semiconductor industry,” she posted alongside a picture with her colleagues.

After her announcement, she celebrated with a relatable snack.

“What do you do after the Oregon CHIPS Act is signed!? Celebrate with some chips!” the governor tweeted playfully, holding a bag of chips with a smile.

The new law will also provide $10 million in funding to help communities prepare land for manufacturing sites and $10 million for a University Innovation Research fund that will help public universities secure federal research grants, according to the governor’s office.

State Sen. Janeen Sollman(D-Hillsboro) has long advocated for bills that allow farmland space to increase urban growth around the region.

“We need to listen to the semiconductor task force,” Sollman said in a statement to OPB. “I’m really hoping that we can work with the governor’s office to truly respect our farmland … but really be smart about where that growth could be to benefit the area.”

Sollman showed her support for the governor’s approval of the CHIPS Act in a Twitter post after the bill was officially signed.

“What a day! @GovTinaKotek signed Oregon’s CHIPS Bill (SB 4). Opening Oregon doors for innovation! I was so happy to have my entire team join me at this game-changing, bipartisan, bicameral event today! #ProudToBeSD15 #orleg #CHIPSAct“ Sollman wrote. 

The bill promises to open up full-time job opportunities and have a positive impact on local and state revenues as a result of the CHIPS Act.

Semiconductor research and manufacturing jobs are well-paying, stable careers that often do not require four-year degrees. An estimated 26,000 jobs are to be created by a new semiconductor manufacturing facility in Oregon and could generate billions in state GDP, according to supporters of the legislation.

Rep. Janelle Bynum (D-Clackamas), the co-chair of the Legislature’s Joint Semiconductor Committee, explained how the CHIPS Act will impact generations to come.

“Oregon CHIPS is a once-in-a-generation opportunity to solidify our status as a global leader in semiconductor production and advanced manufacturing,” Bynum said in a statement.

State Rep. Bobby Levy (R-Echo), who voted against the bill, said he disagrees with the governor approving action to reduce farmland in favor of industrial buildings.

“Several decades from now, we may not want or even need microchips,” Levy said in a statement to OCC. “People will always need food, and paving over farmland to create industrial sites destroys it for hundreds of years without the possibility of reversal.”

State Senate Majority Leader Kate Lieber (D- Portland) praised Oregon lawmakers for coming together to move forward and take steps toward improving the state’s semiconductor industry.

“Everybody on this committee wants the same thing, which is to make sure that we have continued economic prosperity for Oregon for many, many decades,” Lieber said in a statement to OPB. “What is exciting about this bill is that I think that is going to be a start.”