In August of 2022, President Biden signed the bipartisan CHIPs and Science Act into law that is intended to spur investment in U.S. advanced manufacturing, bolster supply chains, and invest in research and development. To ensure Oregon's significant semiconductor sector takes full advantage of the financial benefits available through the federal legislation, the Oregon Legislature passed
Senate Bill 4, which allocates up to $190 million to support Oregon firms applying for CHIPs dollars. Oregon Governor Tina Kotek
signed SB4 into law April 13, 2023.
Please direct questions regarding the Oregon CHIPS Fund application process to the Oregon CHIPS email address:
oregon.chips@oregon.gov.
Additional information is available on the
Business Oregon Semiconductor and CHIPS Act webpage.
The Oregon CHIPS Fund authorized under SB4 is jointly administered via the Governor’s Office and the Oregon Business Development Department. The Oregon CHIPS Fund can provide direct funding via loans and grants for eligible projects. This funding opportunity seeks applications that will support investment in the construction, expansion, and modernization of commercial facilities in Oregon. Emphasis will be placed on applications that promote the creation, expansion, and preservation of semiconductor and advanced manufacturing in Oregon, and that encourage diversification and preservation of regional economies. These awards are intended to serve as covered incentives to assist businesses for purposes of federal semiconductor financial assistance from the U.S. Department of Commerce.
by the U.S. Secretary of Commerce. A covered entity is defined as a non-profit entity, a private entity, a consortium of private entities, or a consortium of nonprofit, public, and private entities with a demonstrated ability to sustainably finance, construct, expand, or modernize a facility relating to fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment.
To be approved and funded, an application must propose a project where grant or loan proceeds be used solely for:
- Research and development with respect to semiconductors or advanced manufacturing; or
- Partnering with institutions of higher education, local workforce boards, groups and other programs for the purpose of workforce development and the creation of training, registered apprenticeship and internship opportunities, with respect to semiconductors or advanced manufacturing; or
- Development of a site for a facility or development of a site for other advanced manufacturing which may include but is not limited to:
- Acquisition and aggregation of land, whether improved or not;
- Expansion, improvement, construction, modernization, demolition or redevelopment of buildings, structures or utilities;
- Acquisition or installation of machinery and equipment; or
- Training or other workforce development specific to facility operations or operations of an advanced manufacturing site.
While other advanced manufacturing projects are eligible for this funding, Business Oregon and the Governor will give preference to projects directly related to the federal semiconductor financial assistance program. Program grant or loan proceeds must be used for new investments rather than existing investments or property. Additionally, proceeds may not be used for costs incurred prior to the effective date of Senate Bill 4 (April 13, 2023).
Applicants are required to submit a complete application electronically to
oregon.chips@oregon.gov. The Governor’s Office and Business Oregon will accept applications beginning June 19, 2023. The Governor’s Office and the Department will begin review of applications received on June 28, 2023.
All materials should be of a size that is easily readable or viewable. All material, including forms, must be typed. Easy-to-read font (11 point minimum) should be used. Smaller type may be used in figures and tables but must be clearly legible. Single or double line spacing is permitted. Margins should be one inch top, bottom, left and right. Paragraphs should be clearly separated from each out by double spacing, paragraph formatting, or equivalent. Pages should be numbered sequentially. Pages must be 8 ½ inches by 11 inches, excluding maps and diagrams as appropriate.
The State of Oregon recognizes the importance of protecting confidential business information from public disclosure. The Governor’s Office and Business Oregon will follow applicable laws including, but not limited to, section 2, chapter 25, Oregon Laws 2023 and ORS 192.345 (2), 192.355 (4), 192.355 (17), 285A.075 (1)(b), and 646.461 to 646.475 to protect such information.
To assist the Governor’s Office and Business Oregon in protecting trade secrets or privileged or confidential commercial or financial information, applicants should follow these guidelines in submitting information via the application process.
1. The following statement should appear on the first page of any document containing trade secrets or privileged or confidential commercial or financial information:
This document contains trade secrets or commercial or financial information that is privileged or confidential and is exempt from public disclosure. Such information shall be used or disclosed only as authorized or required by law. The information subject to these restrictions is contained on all pages of the document except for pages [insert page number or other identification of pages that contain no restricted information.]
2. The following statement should appear on each page of the document that contains information the applicant seeks to designate as trade secrets or privileged or confidential commercial or financial information:
Use or disclosure of information contained on this sheet is subject to the restriction on the title page of this document.
Applications will be reviewed based on evaluation criteria that has been established by the Governor’s Office and Business Oregon and informed by the Semiconductor Advisory Panel. This process will assess whether a project is eligible for the Oregon CHIPS Fund and the strengths and weaknesses of the project against the criteria listed below.
Senate Bill 4 established the following criteria be used when evaluating applications:
- Projects that will promote the expansion and long-term economic viability of the semiconductor industry in Oregon, including research and development, manufacturing, and other critical links in the semiconductor supply chain;
- Projects that will promote and extend Oregon’s leadership in the field of technology;
- Projects that will attract manufacturing jobs to Oregon;
- Projects that will secure supply in Oregon for critical sectors of the state economy;
- Projects that reflect an applicant business’s established relationship, or commitment to build a relationship, with organizations focused on developing a diverse workforce pipeline;
- Applicant businesses that have at least 10 full-time employees in Oregon;
- Applicant businesses that have formed partnerships for the purpose of workforce development or the creation of training, registered apprenticeship or internship opportunities;
- Applicant businesses that commit to:
- Generating a greater amount of state and local revenue; or
- Creating a higher percentage of new permanent full-time jobs
- Applications that propose projects that will incorporate significant participation by businesses owned by members of underrepresented communities and economically disadvantaged individuals;
- Applications that, taken together, represent regional diversity in Oregon.
- The Semiconductor Advisory Panel recommended emphasis be placed on the following:
- Creating an investment portfolio approach where a variety of business size, types, and geographic locations are considered.
- Catalytic projects with potential to develop next-generation technologies.
- Major employers and customers for Oregon
- Diversification and expansion of workforce pipelines.
Applications will be reviewed internally by representatives from the Governor’s Office and Business Oregon.
Application submittals will be accepted beginning June 19, 2023. The Governor’s Office and Business Oregon will begin their initial review of applications on June 28, 2023. The deadline for submittals will be July 28, 2023, for this initial submittal. We encourage businesses to submit their applications as soon as possible following June 19, 2023. Additional rounds will be dependent on availability of funds.
The application review process may take up to 90 days. The expectation is that applications submitted will be complete. In the event an application isn’t complete with the initial submittal, additional information will be requested from the applicant. An application must be complete within the 90-day review period. The 90-day review period begins on the day the application is submitted to the Oregon Chips email account listed above. The Governor’s Office and Business Oregon may provide an approval, a modified approval or reject applications following the review. For applications that are recommended to be approved by the Governor that are in excess of $50 million, a 30-day notice is required to be provided to the Legislature.
For applications that are approved, a letter of intent to award will be provided to the business. Applications that are rejected will receive a letter of explanation. All decisions are final.