Oregon Legislature considers $30 million for semiconductor workforce training

Micron-NSU lab

State economists expect the chip industry will add more than 6,000 Oregon jobs over the next several year. The Legislature is considering money to help train those workers.Provided photo

A year after Oregon lawmakers allocated more than $500 million in subsidies and tax breaks for the state’s semiconductor industry, the Legislature is considering $30 million more for workforce training at public universities and community college.

Computer chip manufacturing is one of Oregon’s largest industries and the state is hoping to grow the sector amid a federal push for more domestic semiconductor production. The state has allocated $240 million from last year’s legislative appropriation to 15 companies planning to expand their Oregon operations.

State economists anticipate the chip industry will add more than 6,000 jobs over the next several years as a result of that growth. House Bill 4154 aims to help train those workers for the specialized field.

Industry advocates sought workforce training funds during last year’s legislative session, ,but lawmakers focused on financial incentives for the industry instead.

This year’s bill would allocate $14.9 million to be shared among six public universities and community colleges. A roughly equal amount would go to a “sustaining fund” for nurturing skills needed in the semiconductor industry.

“This bill will help to fund the universities from community college on through the graduate school level,” Rep. Kim Wallan, R-Medford, testified at a Feb. 6 committee hearing on the legislation.

Oregon’s chip industry shed jobs last year, partially reversing a hiring spree that accompanied a surge in semiconductor demand during the COVID-19 pandemic.

Business leaders and industry advocates believe that dip is temporary and have made semiconductor workforce training a top priority for many years.

HB 4154 has bipartisan support and 35 sponsors but it’s competing with many other bills for attention and funding during this year’s brief legislation session. Lawmakers have indicated they might offer partial funding this year and revisit the topic in 2025.

-- Mike Rogoway covers Oregon technology and the state economy. Reach him at mrogoway@oregonian.com

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