HP is the latest beneficiary of CHIPS and Science Act funding. The Biden-Harris administration said Tuesday that the Commerce Department has agreed to preliminary terms with the company to funnel up to $50 million toward modernizing the company’s Oregon-based plant. The expansion of HP’s “lab-to-factory” facility, which combines research and development with chip manufacturing, is expected to create more than 250 jobs.
Once finalized, HP’s funding would support the development of chips for life sciences laboratory equipment. This includes devices used for drug discovery, single cell research and cell line development. HP says the expansion will also advance technology designed for microfluidics, the study of fluid behavior and control at a microscopic scale. “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 life sciences and technology innovation,” said Enrique Lores, president and CEO of HP. wrote in a press release from the Department of Commerce.
The proposed $50 million would support the expansion and modernization of HP’s existing plant in Corvallis, Oregon, about 80 miles south of Portland. In addition to making silicon, the plant is one of the company’s three global R&D centers. The 80,000-square-foot facility has hosted 39 startups, including 20 spun out by Oregon State University faculty and students. The company has academic partnerships with Portland Community College on training and hiring programs.
The proposed $50 million in funding will be made through a preliminary memorandum of conditions (PMT). The nonbinding agreement is “subject to the achievement of certain milestones.” Once a merit review of HP’s application is complete, the Department of Commerce will begin due diligence on HP’s proposed projects before the agency negotiates or refines its final funding terms.
The $280 billion CHIPS and Science Act, signed by President Biden in 2022, provides funding to incentivize semiconductor companies to manufacture in the United States, increasing the country’s ability to compete with China while generating job growth. It includes $39 billion in subsidies for domestic chip manufacturing and $13 billion for workforce training.
Previous recipients include $8.5 billion for Intel, $6.6 billion for TSMC and $6.4 billion for Samsung. In addition, GlobalFoundries received $1.5 billion and Texas Instruments received $1.6 billion to produce traditional chips (less advanced silicon for things like phones, appliances and defense equipment).
