Oregon’s high tech sector is about to grow even more, with a new multi-million dollar infusion of cash from the federal government.

The Biden administration announced Monday that it will award up to $53 million to HP to support the expansion and modernization of its facility in Corvallis. The money comes from the CHIPS and Science Act approved by Congress in 2022, with more than $50 billion to expand the semiconductor section. The Department of Commerce originally announced its intention to award the money to HP after conducting due diligence on the company. 

“Companies like HP are developing the technologies that will spur unprecedented breakthroughs for generations to come,” Commerce Secretary Gina Raimondo said Monday in a statement. 

Executives at HP, formerly known as Hewlett Packard, have said they will use the money to expand research into microscopic technology that could kick tiny devices into the next generation. It is also expected to lead to 100 new factory jobs and 150 construction jobs, officials said.

“HP is pleased its CHIPS grant has been finalized, which will bolster semiconductor production and innovation in the United States.” Enrique Lores, HP’s president and CEO, said in the release.

The award is the third for Oregon after $1.9 billion awarded to Intel and $72 million for Microchip Technologies in Gresham. HP also has benefited from a $9.5 million award from Oregon’s $210 million allocated to the semiconductor sector. 

Oregon leaders had hoped that the Biden administration would site the last of three semiconductor research centers in Oregon, and Gov. Tina Kotek had announced plans to bring more than 370 acres of farmland inside the urban growth boundary in Hillsboro in preparation for a center. The tech industry is Oregon’s largest and employs more than 30,000 people.

But Kotek dropped the initiative late last year, and in early January, the Biden administration awarded the last site to Arizona State University in Tempe. The other centers went to Albany, New York and Sunnyvale in the Silicon Valley in California.

The award was heralded by Oregon’s two U.S. Sens. Ron Wyden and Jeff Merkley and U.S. Rep. Val Hoyle, who represents Corvallis and the rest of the 4th Congressional District.

“Our 21st century economy is powered by tiny chips that hold huge opportunities, and this major federal investment in HP’s cutting-edge work ensures their possibilities are homegrown and harnessed in Oregon,” Merkley said in a statement.

A total of 11 other technology companies are still hoping to receive money for projects in Oregon through the CHIPS Act, The Oregonian/OregonLive reported.

Oregon Capital Chronicle

Oregon Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Oregon Capital Chronicle maintains editorial independence. Contact Editor Lynne Terry for questions: info@oregoncapitalchronicle.com. Follow Oregon Capital Chronicle on Facebook and X.

Lynne Terry has more than 30 years of journalism experience, including a recent stint as editor of The Lund Report, a highly regarded health news site. She reported on health and food safety in her 18 years at The Oregonian, was a senior producer at Oregon Public Broadcasting and Paris correspondent for National Public Radio for nine years. She has won state, regional and national awards, including a National Headliner Award for a long-term care facility story and a top award from the National Association of Health Care Journalists for an investigation into government failures to protect the public from repeated salmonella outbreaks. She loves to cook and entertain, speaks French and is learning Portuguese.