One of the major pieces of Clark County’s semiconductor industry has a new name. But the question is whether this area can share in the new investments being made in this key industry.
WaferTech in Camas is now TSMC Washington, reflecting the name of its parent organization, Taiwan Semiconductor Manufacturing Co. It’s been around since 1998, and was the first U.S. factory for the company, which created a name for itself by custom manufacturing semiconductors designed by other companies. It was an ingenious idea at the time, and TSMC still holds more than half of the world semiconductor foundry market and, according to The Washington Post, makes roughly 90 percent of the world’s advanced microchips.
At the time it opened, a second factory, or fab, was envisioned on an adjoining parcel that remains undeveloped. Years later, TSMC admitted that the Camas plant had fallen short of its efficiency and cost goals. It continues to operate but its old tools limit it to making semiconductors — the electronic brains of smart devices — that are less than leading-edge.
Semiconductors are a huge business in Oregon and a good business in Washington. According to the Semiconductor Industry Association, a trade group, in 2022 Oregon ranked third nationally in semiconductor employment, with more than 41,000 jobs and an $18.1 billion wage impact. Washington was 10th, with about 5,600 jobs and a wage impact of $2.5 billion.
In recent years, disappointing results had more or less been the story at many U.S. semiconductor companies, including Intel, the Portland area’s biggest employer, which earlier in the year had announced job cuts at it facilities in Washington County.
But things are looking up, at least in Oregon. In 2022, Congress passed the CHIPS and Science Act, making $52 billion in incentives available to U.S. semiconductor manufacturers. This year, the Oregon Legislature passed a companion act that provides grants and loans for companies that want to apply for federal CHIPS programs, expands research at local universities, and offers $10 million to help with land development costs, according to the Oregon Capital Chronicle.
In September, Oregon Public Broadcasting reported Gov. Tina Kotek plans to distribute $240 million in grants and incentives to 15 Oregon semiconductor facilities including Intel, HP, Jireh Semiconductor and Microchip Technology. Together, the 15 companies say the state’s $240 million investment could create 6,300 jobs and more than $43 billion in investment over the coming years.
Will some of the investment rub off on Southwest Washington companies such as SEH America, which makes the silicon wafers used by semiconductor manufacturers? What about TSMC? Will it continue to run its older Camas plant, or will it eventually close? Or might the circumstances change enough for the Taiwan-based company to see an opportunity for new investment?
In a statement, TSMC’s senior vice president of operations, Y.P. Chin, said the name change from WaferTech to TSMC Washington is “a powerful affirmation of our enduring commitment to innovation and collaboration.
“This transition underscores the integral role TSMC Washington plays within our family, contributing to the ongoing success and innovation that defines TSMC’s legacy in the semiconductor industry,” he said.
There is a new name on WaferTech sign. Now our region will watch to see what else is new for this vital manufacturing sector.
