HP awarded $50M in CHIPS funding to modernize Corvallis facility

PORTLAND, Ore. (KOIN) – Amid a major push to bolster the United States' semiconductor industry, Hewlitt-Packard is set to receive $50 million to update its Corvallis facility, the Biden-Harris administration announced Tuesday.

HP and the U.S Department of Commerce signed a preliminary agreement for the tech giant to receive the funding as part of the federal CHIPS and Science Act.

Officials pointed to HP's expertise in microfluidics and micromechanical systems as unique pathway to improving semiconductor hardware.

Part of the $50 million will go toward manufacturing silicon devices for life sciences lab equipment, which are used in drug discovery, single-cell research, and cell line development, officials said.

The funding is expected to create nearly 150 construction jobs and more than 100 manufacturing jobs at the 47-year-old facility in Corvallis.

During an event announcing the funding on Tuesday, Oregon Gov. Tina Kotek said, "HP invented its inkjet printer here in Corvallis, and the facility still remains one of the company’s leading research posts, contributing to our state’s leadership in technological innovation."

“Oregon is a leader in the semiconductor industry because of our world class talent and strong partnerships with higher education. We are uniquely positioned to enhance national security by helping to grow the country’s semiconductor industry. Thank you to the leadership of the Biden-Harris Administration in making this critical award possible," the governor added.

HP President and CEO Enrique Lores said “This proposed investment provides HP with an opportunity to modernize and expand our facility to further invest in our microfluidics technology, which is the study of the behavior and control of fluid on 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 innovation in life sciences and technology."

"We would like to thank the Biden-Harris Administration and Secretary Raimondo for this proposed investment, as well as the Oregon congressional delegation and state leader for their support and advocacy throughout this process. We look forward to continuing to work to accelerate our innovation in microfluidics and MEMS technology while expanding our manufacturing and R&D capabilities in Corvallis, all made possible by President Biden and Vice President Harris’s CHIPS and Science Act,” Lores added.

“The Biden-Harris Administration’s proposed investment in HP shows how we are investing in every part of the semiconductor supply chain and how important semiconductor technology is to innovation in drug discovery and critical life science equipment,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to President Biden and Vice President Harris’s leadership, the United States will continue leading the world in innovative breakthroughs which all require advanced semiconductor technology while also generating economic opportunity.”

The federal funding comes as Oregon lawmakers passed the state's own CHIPS Act in 2023, which includes $9.5 million for HP. According to Oregon lawmakers, HP plans to bring permanent jobs back to Corvallis with the funds.