Janice R. Andrews
Corvallis, OR — The latest business to benefit from the CHIPS and Science Act is HP Inc. On Tuesday, the Biden-Harris Administration said that the Department of Commerce had agreed to preliminary terms with the company to give up to $50 million in funds. With this money, HP’s “lab-to-fab” plant in Corvallis, Oregon, which combines research and development (R&D) with chip manufacturing, will be updated and made bigger. The growth could create more than 250 jobs, making HP’s role in chip innovation even stronger.
The suggested cash is meant to help HP make more chips for life sciences lab equipment, like those used to find new drugs, study single cells, and grow cell lines. In addition, the business wants to improve technology related to microfluidics, which is the study and control of flows on a tiny level. Enrique Lores, HP’s CEO, said, “Microfluidics has the potential to drive revolutionary changes across industries, delivering speed, efficiency, and precision, to help pave the way for the next generation of innovation in life sciences and technology.”
Adding on to and updating the Corvallis Plant
The $50 million package of funds would be used to update and grow HP’s 80,000-square-foot plant in Corvallis, which is about 80 miles south of Portland. Not only is this plant a center for making silicon, it is also one of HP’s three world R&D sites. The building has been a key part of promoting innovation since it opened. It has been home to 39 startups, 20 of which were started by Oregon State University teachers and students. Additionally, HP has formed academic relationships with Portland Community College to build programs for training and hiring that help the semiconductor business.
A preliminary letter of terms (PMT) between HP and the Department of Commerce is what the funding deal is based on. This deal is not legally binding, but it depends on reaching certain goals set by the government. The Department of Commerce has already looked over HP’s application and decided that it meets the requirements. They will now look into the planned projects and make any necessary changes to the final funding terms.
The CHIPS and Science Act: A Big Push for Making Semiconductors in the U.S.
President Biden signed the CHIPS and Science Act into law in 2022. It is a $280 billion plan to bring the U.S. chip business back to life. The Act is meant to make it easier for the US to compete with China by supporting the production of semiconductors in the US and creating jobs all over the country. It includes $39 billion in funding set aside just for making chips in the United States, as well as an extra $13 billion for teaching workers.
Along with other chip giants, HP has gotten a lot of money through this Act. Intel was the last winner, getting $8.5 billion. TSMC got $6.6 billion, and Samsung got $6.4 billion. Also, GlobalFoundries and Texas Instruments were given $1.5 billion and $1.6 billion, respectively, to make heritage chips. These are older types of silicon that are used in phones, appliances, and security equipment.
What this means for the future
If the deal goes through, the money will help HP’s long-term growth plan and show its dedication to new ideas in chip and life sciences technologies. HP will play a key role in improving microfluidics and semiconductor research by growing its operations in Oregon. It will also create high-tech jobs in the area.
The funding is in line with the CHIPS and Science Act’s larger goals to make the U.S. more competitive in the semiconductor manufacturing business, which is important for national security, fiscal stability, and scientific leadership.
