Analog Devices Portland Factories Awarded $105 Million In CHIPS Act Funding
PORTLAND, Ore. — The Commerce Department announced yesterday that Analog Devices Inc. will receive $105 million in the latest round of federal CHIPS Act awards. The funds are earmarked to upgrade Analog’s factories in the suburbs around Portland and Boston.
$105 Million CHIPS Funding Awarded To Analog
Massachusetts-based Analog Devices makes computer chips used in cars, industrial equipment, airplanes, and national defense. Its factories are on the edge of the Tektronix campus near Beaverton, Camas (Washington), and Massachussets.
Manufacturing came under pressure in the industries served by Analog during the pandemic, leading to semiconductor shortages, which resulted in shortages globally.
Analog was awarded $105 Million in CHIPS funding and plans to use the federal subsidies to expand its Northwest factories, return manufacturing to the U.S., and reduce the use of hazardous solvents in its local manufacturing process.
Analog declined to indicate how the funding will be allocated between the two factories. It was noted that the most significant investment would be at the Oregon factory.
The award is preliminary, and Analog must negotiate the final terms after President-elect Donald Trump returns to office. Analog Devices CEO Vincent Roche said, “This investment will help us strengthen our workforce training and community partnerships and expand our efforts to manage our environmental footprint.”
Analog employs about 950 people at its factory in Washington County and 500 people in Camas. According to the company, the CHIPS funding will help fund another 500 jobs in Oregon, Washington, and Massachusetts factories.
Oregon CHIPS Funding
The CHIPS Act, Passed Congress in 2022 with bipartisan support, allocated $52 billion to help revitalize the domestic semiconductor industry and reduce the country’s reliance on technology from Asia. Analog is the third company awarded CHIPS Act funding to pay for projects in Oregon.
$1.9 billion will be used to modernize its factories in Hillsboro, and $53 million in CHIPS Act funding was awarded to HP for Oregon research and manufacturing. The latter money will be used to expand HP’s operations in Corvallis.
$72 million in CHIPS funding allocated to Microsoft Technology to expand its Gresham factory has been shelved after a sharp drop in sales.
Several CHIPS Act awards were made in the final days of the Biden administration. On Thursday, over $140 million was also allocated to CHIPS-backed projects in other parts of the country.
While Trump supported similar legislation during his first term, he criticized the CHIPS Act, leaving uncertainty among tech companies and officials in the Biden administration.
Analog said in a written statement, “We will work with the new administration on the shared priorities of strengthening U.S. manufacturing and advancing our country’s economic and national security.”