Oregon Gov. Kotek proposes rural land for semiconductor facility

SALEM, Ore. — Oregon Gov. Tina Kotek is using a new land-use law to propose a rural area for a semiconductor facility, as officials seek to lure more of the multibillion-dollar semiconductor industry to the state.

Kotek has proposed expanding the city boundaries of Hillsboro, a suburb west of Portland that’s home to chip giant Intel, to incorporate half a square mile of new land for industrial development, Oregon Public Broadcasting reported. The land would provide space for a major new research center.

Oregon, which has been a center of semiconductor research and production for decades, is competing against other states to host multibillion-dollar microchip factories.

Law passed last year

The CHIPS and Science Act passed by Congress in 2022 provided $39 billion for companies building or expanding facilities that will manufacture semiconductors and those that will assemble, test and package the chips.

A state law passed last year allowed the governor to designate up to eight sites where city boundaries could be expanded to provide land for microchip companies. The law created an exemption to the state’s hallmark land-use policy, which was passed in the 1970s to prevent urban sprawl and protect nature and agriculture.