FILE - The inside of a computer is seen on Feb 23, 2019, in Jersey City, N.J. A global computer chip shortage has made it harder for consumers to get their hands on cars, computers and other modern-day necessities, so Congress is looking to boost chip manufacturing and research in the United States with billions of dollars from the federal government.
Jenny Kane / AP
A company vital in designing and building equipment for the world’s largest computer chip firms broke ground on a $620 million research and development lab in Tualatin Wednesday.
Overall, Lam Research will spend $1.5 billion on major research and development laboratories in Washington County over the next decade and half.
It’s part of a global expansion of the semiconductor equipment firm’s network of labs. Lam Research plans to pump $3 billion into operations in the U.S., as well as in Asia and Europe.
“AI and the pace of innovation that it demands has changed everything,” Lam Research CEO Tim Archer said at the groundbreaking ceremony for the new lab. “Today, you’re basically getting new AI models coming out every month or so, and each of these requires more computational power — better memory, more storage. And it’s the type of equipment that we manufacture and develop right here in Oregon that helps make all of that possible.”
Wednesday’s groundbreaking comes at a precarious time for the state’s manufacturing sector, which includes semiconductor manufacturing. The sector has been shedding jobs as companies consolidate. Oregon has lost nearly 8,500 manufacturing jobs over the last year, according to state employment data.
Those losses include nearly 2,500 layoffs last summer at major chipmaker Intel, the state’s largest private employer. Lam Research designs and builds tools for Intel and other major semiconductor companies, like Micron.
Lam Research's groundbreaking ceremony on its new research & development lab in Tualatin, Oregon. The facility is expected to create 400 jobs at the semiconductor equipment company.
Kyra Buckley / OPB
The job losses come despite soaring demand for computer chips due to advancement in the use of artificial intelligence. Intel, which acts as an anchor company for Oregon’s industry that’s mainly concentrated in Washington County, is playing catch-up to other companies when it comes to AI.
But recent partnerships now have Intel providing chips for data centers, needed to keep the AI industry running. Experts say that won’t necessarily translate into big jobs gains for Oregon’s technology manufacturing sector. However, it does raise confidence for equipment companies like Lam Research that their products will be in demand for the foreseeable future.
Lam currently employs around 3,000 people, mostly at its campus in Tualatin. Once constructed, the new 120,000-square-foot facility is expected to add another 400 jobs to the company’s headcount. Under a multi-year deal with Washington County, the new building qualifies for property tax breaks and Lam will pay an estimated $111 million in taxes and fees over the life of the agreement.
“Our new advanced Oregon lab is expected to deepen our specialized capabilities and add tens of thousands of square feet of valuable cleanroom space,” Sesha Varadarajan, Lam’s chief operating officer, said in written statement about Wednesday’s groundbreaking, “enabling even closer collaboration with customers while strengthening the expertise and reach of our global lab network.”
